Invoice Finance

Having large amounts of cash tied up within your debtors can substantially halt your SME business growth, an Invoice finance solution will help unlock up to 90% of the cash tied up in your unpaid invoices.

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What is Invoice Finance?

Having large amounts of cash tied up within your debtors can substantially halt your SME business growth, an Invoice finance solution will help unlock up to 90% of the cash tied up in your unpaid invoices.

By converting your invoices into cash you will have a more efficient cash flow system enabling you to trade without the constraints of slow paced debtors. This facility gives your business the immediate working capital it needs whilst retaining full control of your sales ledger and relationships with your customer.

There are two types of Invoice Finance. Both Factoring and Discounting release the cash in unpaid invoices but discounting is 100% confidential meaning that you remain in control of credit control instead of the finance company.

We work with trusted partners who not only can release up to 90% of the value of your sales invoices but they also are aware that time is critical in important cashflow situations which is why they can release funds with immediate effect.

Get your quote today to find out how this solution can help support your business.

The Benefits

The benefits of Invoice Finance:

  • Sell one or multiple invoices
  • Receive 90% of your sales invoice value immediately
  • No limits on invoice value
  • Receive the funds within 24 hours
  • Improves your cash flow
  • No dilution of equity
  • Discounting and factoring services available
  • No hassle of chasing payments
  • Confidential from your customers (if you choose)

How It Works

It basically works by you selling your outstanding invoices to the invoice financier, therefore releasing immediate cash.

1) You have a £10,000 unpaid invoice.

2) You sell the invoice to the invoice financier for £9,000 at 90%.

3) Your customer settles the invoice and pays the £10,000 to the lender (Confidential discoutnign option available)

4) The lender then pays you the remaining £1,500 minus their fees.

For example you are owed £30,000 by a customer. You sell the invoice to the invoice financier for £27,000 at 90%. They collect £30,000 from your customer and pay you the remaining £3,000 when they receive the money minus their fees.

Types of Invoice Finance

There are two types of Invoice Finance:

Invoice Discounting

If you have unpaid invoices affecting your cash flow, you can easily release up to 90% of the value of your sales invoices with invoice factoring. It’s very similar to invoice factoring, except you, the business manages the credit control (as normal). This is a great option if you don’t want your customers knowing you are using this facility – It’s completely confidential.

Invoice Factoring

Factoring works in a very similar way to invoice discounting, the only difference is that the administration of managing your ledger i.e the invoices, letters, chasing of payment and debt collection etc is handled by the invoice financier on behalf of your business.

Unsure of what type of invoice finance to go for?

Don’t worry, our partners will help you decide what the best solution is for you and your business.

Do I Qualify?

To qualify for invoice finance, your business must:

  • Invoice other businesses
  • Have an annual turnover of at least £100k

If you don’t meet this criteria, don’t worry! We have a wide range of other business finance options available for you.

Get your free quote

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