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Invoice finance
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Invoice Finance releases funds tied up in outstanding customer invoices. There are different types of financing.
• Invoice Discounting: You retain control of credit control, receiving up to 90% of the invoice value on issuance, with the balance paid when the customer settles.
• Invoice Factoring: Similar to invoice discounting, the lender also manages your credit control processes.
• Selective Invoice Finance: Financing specific clients or individual invoices, utilising the facility when cash flow requires it.
There are also specialised products available for sectors such as construction, recruitment, and professional services. - Please contact us to find out more.
Invoice Finance is a financing solution that allows businesses to access immediate cash flow by using their outstanding invoices as collateral.
Here's how it works:
• Cash Flow Relief Invoice Finance provides you with the funds you need for completed work or delivered goods, even if customers have not yet paid their invoices. This helps alleviate cash flow constraints that can arise when there is a delay in receiving payment from customers.
• Working Capital Management By converting accounts receivable into immediate cash, businesses can effectively manage their working capital. You can use the funds to cover expenses such as wages, contractors, overheads, and supplier payments, ensuring smooth operations and continuity of business activities.
• Addressing Cash Demands With Invoice Finance, businesses can meet their ongoing cash demands, even when faced with delayed customer payments. This allows them to avoid cash shortages and maintain their financial obligations, such as paying bills and meeting other financial commitments.
• Seizing Opportunities. Having access to immediate cash flow enables businesses to capitalise on new opportunities for growth. They can invest in business expansion, purchase inventory or equipment, hire additional staff, or take advantage of time- sensitive opportunities that require immediate funding.
• Cost Considerations While Invoice Finance does come with a cost, usually in the form of a fee or discount charged by the finance provider, it allows businesses to maintain their working capital and continue operations.
The benefits of improved cash flow and the ability to seize growth opportunities often outweigh the associated costs.
It may be your first time looking at Invoice Finance, and we want to make sure that you fully understand it as an option for your business.
We take the time to fully explain all of the features and benefits – and make sure that you have enough detail to make an informed decision, including:
• Confidential Invoice Discounting (CID) doesn’t let your customers know that you are using finance. • Invoice Factoring allows you to outsource your credit control to the lender.
• A Selective facility lets you choose the customer or the individual invoice to fund.
• Invoice Finance gives immediate access to cash flow – on the day that you invoice the client.
• Improved cash flow reduces the risk of your businesses making late payments.
• Being able to pay suppliers earlier and in full could secure better terms for you and your business. Increasing efficiencies within supply chain management.
• Less risky for lenders than unsecured borrowing. Invoice Finance can be a less expensive way for you to finance your business.
• Suppliers, staff costs and fixed overheads can all be met with funds available to you in the facility – long before your clients settle the invoices
Without access to working capital, how else can you take on new opportunities and business? Invoice finance could be key to your business growth.
