Business financing simplified

Funding Invoices

Business financing simplified

What Is Invoice Financing?

Invoice finance allows businesses to release the cash tied up in your unpaid invoices. If you are a business that struggles with cash flow issues, invoice finance is one of the best methods to ensure that you get your invoices paid faster. 

In simple terms: rather than waiting days or weeks for invoices that you are owed by customers, invoice finance gets you the cash immediately so you don’t have to wait to get paid.

Some of our lenders

Confidential Invoice Discounting

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Invoice Financing Benefits

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Selective Invoice Finance

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Invoice Factoring

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Types of Invoice Finance

Confidential Invoice Discounting

The product where the lender is most closely involved. Once the company has paid, your factoring company will collect the debt, deposit the remaining balance and take their fee. They will provide ‘credit control’ to ensure customers pay on time. Factoring facilities provide both the advanced funding and credit control, on a disclosed basis with the client customers.

Invoice Factoring

You send the invoice details to your invoice finance provider, the provider then makes the funds available immediately to you. Once your client pays you, the remaining balance of the invoice is available for you to withdraw and the finance provider take their service fee. Raise your invoice and get paid quickly.

Selective Invoice Financing

This doesn’t involve an agreement with for the sales ledger, so you choose which invoices you’d like to advance. This means you keep control and have flexibility to adjust your cash flow when you needed.

How Does It Work?

If you provide workers to the council and raise invoices at the end of each week. Your workers need to pay every Friday, but the council pays you every month, clearly, you are going to have negative cash flow.

Invoice finance providers will give you up to 90% of the weekly invoices upfront, meaning that you can afford to pay your workers. At the end of the month, you receive the 10% net of the small fee.

The Benefits

Credit Control

Factoring (but not invoice discounting) facilities often take care of the credit control function, removing the hassle for the business. This can reduce your costs and allow you to concentrate on what you do best, i.e. running your business.

BENEFITS

Flexibility

With selective facilities, there is a flexibility that allows businesses to include as many or few customers within the facility that they wish. You might decide to include all of your customers in the arrangement, or just a few key customers.

BENEFITS

Amount

The size of the facility is dependent on your business. Because the amount borrowed is dependent on your invoices, this therefore grows and dips in line with your business. This means you can access additional invoice finance as your business turnover increases, so it’s a very flexible arrangement. Invoice financing can allow you access to upfront payments of up to 90% of the value of the invoice, so your cash flow situation can improve significantly.

BENEFITS

Speed

The funding is available quickly. Once the arrangement is in place, the funds can often be released from an invoice within 24 hours. Applying for invoice finance can also be a very easy process. There is minimal paperwork to complete for an invoice finance application.

BENEFITS

Qualifing questions

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