What is Invoice Finance?
A simple way to boost your cashflow
Invoice Finance is a simple funding solution based on one of your assets: your sales ledger. When your business issues an invoice to a client we advance you up to 95% of its value. You then receive the remaining balance minus our fee when your client pays.
This means you can still offer credit terms to your clients and they still get the usual time to repay your invoices, but you get to access the cash value straight away – we deposit the funds into your account within 24 hours of receiving the invoice.
Why use Invoice Finance?
It eases the day-to-day pressures of cashflow and boosts your working capital. Instead of waiting weeks or months to be paid, you can unlock the value of your invoices within 24 hours of raising them.
As you use your ledger as an asset to secure the funding, you won’t need to put any unsecured or personal loans into your business to keep it moving.
Our full support service means we can also chase your debtors for you, enabling you and your team to spend more time on keeping your business moving.
What are the main benefits of Invoice Finance?
Invoice Finance is ideal for most type of businesses: when assessing risk, lenders will primarily focus on the credit history of your clients and the health of your sales ledger. But there are many more benefits to it:
- Cash is released within 24 hours of submitting an invoice
- It costs less than an overdraft facility
- It can help you provide credit terms to your customers, making trading with your business more enticing
- It can help you pay your bills and wages, VAT payments and capex purchases
- It can help you grow your business by removing pressure points on your cashflow
- It can help you access early-payment discounts from your suppliers
How is the facility repaid?
When you submit your invoices, up to 95% of their value will be sent to you. Your customers then repay into a dedicated bank account, filling up your facility back to its approved limit. As customers repay, the remaining balance is paid to you minus the agreed fee.
How much does Invoice Finance cost?
Invoice Finance can be a very cost-effective way to protect your cashflow. The fees you pay will depend on the provider and the nature of your facility – you may be charged less if you opt to retain the collecting of invoices inhouse.