ID vs OD

 

ID vs OD Traditional overdrafts are based on historical trading data and are capped at tight levels. By contrast, Invoice Finance is a revolving facility that uses your assets to leverage greater funding availability - as you grow, your availability grows.

Invoice Finance from GE is a flexible source of working capital that enables you to convert up to 90% of your trade debtors into cash, quickly and efficiently.

Benefits

  • Converts up to 90% of your trade debtors into cash
  • Has no upper limit
  • Promotes Growth of your business
  • Maintains Cashflow
  • You maintain full control of your sales ledger
  • Facilities are operated on a confidential basis

Invoice Finance will usually provide your business with a greater level of funding than a traditional bank overdraft.

ExampleIf you did not have an Invoice Facility in place, then you could be left with a huge Funding Gap. The blue line shows the cash you get if you have an Invoice Finance Facility in place and your debt turn is 30 days. As you sell through the month, you'll be also collecting last month's sales. So, if you did not have an ID facility in place you could have a funding gap of £18m in month 1 and £105m in month 12.Funding Gap

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Speak to a finance specialist, call 0800 85 86 87.

 

 

 

 

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