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Invoice Discounting and Factoring – what’s the difference?
Terms and Conditions of Employment Checklist
Deadlines and reminders
PM Services
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Parfrey Murphy

Our aim is to help our clients increase their profitability, improve their cash flow and reduce their tax liabilities so that they have more disposable income. As trusted business advisors who provide peace of mind to our clients, we have an absolute focus on client service. We provide an unconditional, 100% risk free, guaranteed, service with fixed fees agreed in advance wherever possible. We are Registered Auditors, Tax Consultants, Business Advisors, Payroll and Accounts Outsourcing Specialists, Insolvency Practitioners and Forensic Accountants. Please feel free to call us if you wish to do business with us.

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Invoice Discounting and Factoring – what’s the difference?

Lucinda Clancy of Clancy Cashflow Solutions, specialist brokers for business finance solutions, has written the following article which you may find useful.

“I’ve talked to lots of people who are confused about Invoice Discounting and Factoring, and many think they are the same product. Well, they’re not. Let me explain.

Invoice Finance is an umbrella term to describe a number of products including Invoice Discounting and Factoring. It’s also often referred to as debtor finance or receivables finance. The term has become widely used in Ireland and many Invoice Discounters refer to Invoice Finance in their product offering.  However, in the Irish market, many people still use the term Invoice Discounting.

So, what’s it all about?  Well, very simply, Invoice Finance releases cash to a business (up to 85%) from outstanding trade debtors’ invoices as soon as the invoices are raised. The balance, less charges, is paid when the customer pays in full.  The benefit is that the business has immediate access to cash. Invoice Finance suits businesses that are selling goods or services to trade debtors on credit terms and invoicing in arrears.

Although Invoice Discounting and Factoring are often confused, there are key differences between them:

Invoice Discounting ‑ the funder provides a business with cash against unpaid invoices. The business continues to do the credit control and collections function in-house.  The customers pay into a trust account controlled by the funder and the facility is usually confidential, so customers are unaware of the funder’s involvement.

Factoring - the funder provides cash against unpaid invoices AND undertakes the credit control and collections function on behalf of the company.  The facility is disclosed and the customers are required to pay the factoring company directly.

Although Invoice Discounting is more common in Ireland, Factoring and related products are growing in popularity as business owners  are forced to think outside the box due to stricter lending criteria. Also, the benefits of outsourcing the credit control are now more widely recognised, and importantly, people are not so hung up about disclosing their invoice finance arrangements to their customers.

Each product has different qualifying criteria and depending on a business’s needs and financial status, it may be suited to Invoice Discounting, Factoring or CHOCS – a hybrid product, to mention a few.

It’s important to know the differences between the invoice finance products because this helps people to make the right choice.  Hope this clears up any confusion.”

Lucinda’s website is and her telephone number is 01 438 6462 if you wish to discuss financing solutions with her.

Terms and Conditions of Employment Checklist
by Seamus Parfrey

Seamus Parfrey

The following checklist should help you to decide on your terms and conditions of employment. You are legally obliged to provide all employees with an employment contract. If you do not have one I suggest you call Mary Blythe on 021-4310266 who will advise you on your legal exposure and what you need to do immediately.





Employee and other information



Terms and conditions









Subsistence and travelling allowances






Commencement of employment



Probationary period





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Deadlines and reminders
by Sinead Herlihy

Sinead Herlihy

Deadline - 14 June 2012

  • Return and payment of dividend withholding tax for May 2012.
  • Return and payment of PAYE / PRSI for May 2012.
  • Return and payment of RCT for May 2012.

Deadline - 21 June 2012

Corporation Tax

  • Preliminary corporation tax for accounting periods ending 31 July 2012.
  • First installment of preliminary corporation tax for accounting periods of large companies ending 31 December 2012.
  • Corporation tax returns for accounting periods ended 30 September 2011.
  • Balance of corporation tax due for accounting periods ended 30 September 2011.
  • Third party information returns for accounting periods ended 30 September 2011.

Where returns and payments are made electronically the return and payment deadlines are being extended to the 23rd day of the month.


The collection of the Non Principal Private Residence Charge for 2012 commenced on the 31st of March 2012. The 2012 charge is based upon the ownership and status of the property on the 31st March 2012.

Please note that you must pay the NPPR charge for 2012 on or before the 30th June to avoid late payment fees.

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