Invoice Finance provides your business with instant access to cash tied up in your outstanding invoices, removing the usual delay of up to 90 days from sending an invoice to receiving payment.
Invoice finance removes the obstacles from your cash flow freeing you up to concentrate on growing your business and capturing new sales.
How does it work?
Your business can borrow up to a pre-agreed percentage of an invoices total value. You then repay the loan once your customer pays the understanding invoices.
Types of Invoice Finance:
-Factoring: In addition to loaning against an outstanding invoice the lender will collect the money in on your behalf. This is a discreet and friendly service which takes the pressure away from you to concentrate on running your business.
There are two types of factoring, Disclosed and Non-disclosed. Disclosed Factoring means that your customers are aware that their invoice will be processed through a Bank and therefore the bank will be involved in chasing the invoice. Whereas, Non-disclosed factoring is where the customer isn’t aware that the invoices are processed through a bank.
-Confidential Invoice Finance: This product leaves you in control of collecting the outstanding invoices yourselves, which is more suited to established businesses that have dedicated finance departments.
-Selective Invoice Finance: As the title would suggest, you are in control to pick and choose the invoices you want to finance. This is especially helpful for those months of the year where cash flow can be tight or for those customers that occasionally pay beyond 30 days.
Available from a one-off single invoice to an all-inclusive solution
Available from £5,000 to £1m+
Interest charged daily or monthly depending upon the lender