Block Discounting Finance

What is Block Discounting?

Block Discounting is a little known, low cost, facility whereby working capital can be raised against a future income stream. Rental & credit agreements can be sold to a third party in return for an agreed discount, depending on the quality of the customer base.

For lower quality loan books, the finance can be raised against the income stream at an agreed interest rate. In this case the actual loan to book value will be matched against the income stream. These revolving facilities are easy to operate and are totally confidential, there is no change of ownership of any underlying goods. You retain full control of your business.

As your business expands then further cash can be raised against new "batches" or "blocks" of agreements in as little as 48 hours.

Note:- rental contracts etc. must be assignable to a third party.

How can Block Discounting Help?

These facilities offer a way of un-locking capital tied up in finance agreements to businesses offering hire, rental or credit terms to their customers. If the growth of your small or medium sized business is being held back in this situation then this solution could be ideal. The benefits of a block facility are an immediate capital injection into your business, the funds may of "off balance sheet" and finally opportunities for additional sales are created.

Business Sectors that can Benefit from a Block Discounting Facility

There are a range of finance agreements that are suitable for funding that include, but are not restricted to:- Bills of Sale, Credit Sales, Hire Purchase, Leases, Loans and Rentals.

It is also possible to use block discounting across a wide range of business sectors, including:-

• Asset Finance e.g. IT Equipment
• Leasing & Rental Companies e.g. plant hire
• Manufacturing Companies
• Personal Finance *
• Vendors

* Please note that we are only able to service block discounting requests in the B2B sector.