Finance Blog


The Best Financial Method to Deal with Large Sales or Seasonal Sales

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Getting to know business tactics will help any business man to stay out of trouble when they come to face business pit falls. So here are some details about a financial plan called single invoice discounting which is also called as selective invoice discounting that helps to sustain your business during hard times. It will surely keep you away from problems that might arise when paying your employees or buying the raw materials to keep your business going during hard times.

Why are these methods popular?

The simple answer is they are hassle free that’s why. The selective invoice discounting method is a much popular business tactic these days as it allows to get the business capital to the businesses without having to go through much paperwork and verifications. That means to get funds you will not be asked to transfer details about your incomes or to bring in guarantors like the banks wants you to do when they grant you a loan.

It’s also a very quick process; you can have your required cash deposited to your bank account within a short duration of time like 24 hours. And to qualify for such a plan you only need few requirements like being a company that sells goods to customers, having valid invoices and be willing to agree to their fees.

What’s good about it?

Selective invoice discounting works in a similar way to spot factoring but it allows you to have more control over your sales ledger. Here also you sell the individual invoices to a third party to raise the working capital like in spot factoring. The difference is you sell it for a discount. So it is an ideal method to deal with large single orders.

How it works?

  • First you provide the goods to your customers and sends them invoices electronically.
  • Secondly you send the invoice details to the invoice discounting company electronically as well
  • The company considers the invoices and checks for their validity.
  • Next the company deposits funds equal to a certain percentage of the invoice you sent them usually the percentage ranges between 70 to 80%
  • When your customer that owes you pays, the remaining balance of the invoice is made available to you after reducing the finance company’s service fees.


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