About Touch Financial
Touch Financial is the largest independent broker specialising in invoice finance in the United Kingdom. An award-winning company, it aims to serve the needs of businesses by finding the most appropriate solutions to sourcing working capital. To do this it has brokered professional working partnerships with more than 20 respected lenders.
Touch Financial can provide a comprehensive service. The company can supply advice and information about available funding options, including invoice factoring and invoice discounting, and protection from bad debt. The aim is to offer flexible solutions for businesses in order to promote healthy cash flow, resulting in business growth.
Invoice Finance
An invoice finance service allows lenders to advance a high percentage of the value of invoices raised within one or two working days of their presentation. This is achieved either through invoice factoring or invoice discounting. Both types of invoice finance use similar methods for generating revenue: once an invoice has been submitted, a pre-arranged amount of the value of the invoice will be advanced to the business by the lender. The full balance due, less any fees or charges, is then paid when the invoice has been settled. To summarise: the lender raises income by charging fees that relate to the value of the invoices against which funds have been borrowed.
Factoring
Factoring is a process that can provide steady and regular cash flow to a business. The lender (factor) normally takes control of the credit management system used by the business. Small and Medium-sized Enterprises (SMEs) normally do not have in place an in-house credit management system, so this can be a great help for businesses planning to borrow in order to start, grow or expand a business.
Discounting
Invoice discounting has the capacity to provide a business with a steady flow of cash. In this case, however, control of the sales ledger can be maintained by the business. Well established companies tend to prefer this method of invoice finance as often they have one or more staff in place dedicated to looking after this area, and/or procedures that deal with credit control.