What is Invoice finance?
Even with a full order book, you could still wait 60, 90 or even 120 days for a client to pay an invoice, and persistently late, or non-payers can monopolise your time and cripple your business.
Invoice finance is where a third-party effectively lends you money against the value of those invoices… and does so as soon as the invoice is raised.
With the traditional routes of High Street funding becoming increasingly difficult, and expensive, to access, invoice financing is far more attractive to lenders; as the money you are borrowing against is already yours.
Once we’ve found the right deal for you, we can release cash tied up in your sales ledger in three easy steps:
- You raise an invoice to your customer, and send a copy to the facility provider
- They advance you up to 95% of the invoice value within 24 hours
- Once your client has paid, the facility provider will forward you the balance of the value, minus a small fee for the service.
So, for a few pence in the pound, you receive your money within a day, rather than the 30, 60 or 120-day payment terms you have with your client …and you only pay it back once your client has paid the invoice.
There are two main types of invoice financing: ‘full factoring’ or ‘invoice discounting’; and your choice depends on whether you want to manage client invoice payments yourself, or outsource it.
Each has benefits, and we will discuss these with you.
Of course, you may not want your customers to know you have a finance facility in place, so we can provide a confidential option.
We can also arrange for you to fund single invoices, rather than the entire sales ledger, which can be ideal for particularly-high value invoices, or those on longer-than-usual credit terms.
There are many options with no one size fits all solution. But we will always do our very best to find the most suited option for you.
Get in touch