If you are a small business in the UK and you are looking for some additional working capital, you might want to consider invoice finance for your business. Invoice financing refers to a method of short-term borrowing from invoice finance lenders to small businesses.
Invoice finance allows businesses to release the cash tied up in their 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
Funding Bay is here to help you find the best invoice lender that matches your business’s needs perfectly.
Here are some benefits of invoice financing:
- You will improve your cash flow, allowing you to cover costs like paying suppliers, salaries, and office expenses.
- You can invest in other projects that will generate more revenue.
- You will have cash available to you for unexpected costs.
- You can keep the ship sailing because you are not cash-strapped.
How does payment work?
A fixed rate: Lenders charge a fixed rate for lending accessibility which will be an interest rate for the total amount of money that is loaned. For example, a lender may charge you a loan accessible fee of 1.5%, which is an annual lending interest rate for the owed money.
Pay per invoice: As the borrower, you will pay the lender a small percentage of the invoice amount that is issued as per the agreement between you and the lender.
What type of small businesses will benefit from invoice financing?
- Businesses that sell on credit
- Companies that sell the retailers and wholesalers
- Firms who would like to invest in projects that will expand their business
- Companies that go through times of cash flow uncertainty
- Companies that have high monthly overhead expenses and have to wait for payments
Here are some industries that suit invoice financing :
- Recruitment companies
- Fintech companies
- Commission sales companies
- Clothing companies
- Storage companies
- Printing companies
- Construction companies
- Farmers
- Electric good companies
- Stell businesses
- Security companies
- Accounting practices
- Medical Practitioners
- Furniture businesses
- Repair shops
Invoice finance can help a wide range of industries manage their finances.
Get in touch with us at Funding Bay for your invoice financing needs.
Check out our invoice finance calculator here.
