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How Invoice Finance can help businesses unlock growth

09-03-2023|By Anthony Gougeon, Marketing Manager

In business, growth can take many different forms, including larger order books, bigger premises, more team members, opening to other markets and so forth. Whatever the goal, success is often at risk of being jeopardised by cashflow management. Most businesses experience delays in receiving payments, and many have seen their path to growth abruptly hampered by late payments or unexpected hurdles getting in the way of accessing the liquidity they need to keep moving to meet their ambitions.

Because we believe than gaining access to the right funding can unlock and significantly accelerate growth, at Ultimate Finance we have gained over 20 years’ expertise in assisting UK SMEs with our range of bespoke asset-based lending solutions: since providing our first funding solution in 2002, we have been able to help thousands of businesses achieve their ambitions by providing over £10bn of strategic funding. And when it comes to building an effective cashflow strategy, Invoice Finance is a reliable and, most importantly, scalable long term cashflow solution for addressing working capital needs, whether for supply chain payments or even personnel costs such as wages.

What is Invoice Finance?

Invoice Finance put simply, is a revolving line of credit where a business that sells to other businesses on credit can access the cash tied up in unpaid invoices as quickly as within 24 hours. Once an order is fulfilled and an invoice issued, we advance a proportion of the invoice value, with the remainder available upon repayment minus a small fee.

The funding solution is a simple method to help ease the day-to-day pressure of managing cashflow and increase access to additional working capital. Moreover, since the facility is secured through the company’s sales ledger, a business can access as much capital as they are due and the need for any unsecured or personal loans to be taken out by director is virtually eliminated.

Invoice Finance is sometimes also known as Discounting or Factoring and are the most common forms of financing accessed via receivables. With Invoice Factoring, in addition to advancing the value of invoices we generally take on the responsibility for receiving payments from customers, credit control and collections services. Discounting offers a more confidential service where the business remains in control of payment chasing and invoice processing.

How does Invoice Finance work?

At Ultimate Finance, we provide up to 95% of an invoice value on the same day it is submitted to us. Customers then repay invoices directly into a dedicated bank account set up on the behalf of the business, and we transfer the remainder of the cash minus a small service charge.

We also provide optional features to further support cashflow management. Our Credit Control option sees collection services handled by our team so that our clients have more time to do what they do best: run their business. And with our Debtor Protection feature, businesses are protected from the risks of non-payments are through the provision of insurance.

There are many benefits to Invoice Finance: not only is cash available within 24 hours of submitting an invoice, but it also usually costs less than an overdraft facility, can help provide credit terms to customers to attract more business, can be used to pay bills, wages, VAT payments and capex purchases and can support with securing early-payment discounts from suppliers.

Driving Business growth through long-term relationships

In partnership with our extensive introducer network, we work with companies of all sizes in all industries and have a strong track record for assisting businesses with their growth ambitions through the provision of tailored funding solutions.

With the support from our funding, businesses can access crucial liquidity that can be used to target growth by investing into operations, purchasing equipment, pay suppliers, recruiting more staff, launching marketing initiatives, and so much more.

In addition to accessing the funding they need to keep moving, by choosing Ultimate Finance as their funding partner of choice businesses also get the benefit of the outstanding support our team of Relationship Managers provide: not only have our facilities been recognised as best-in-class in several industry awards, our existing clients and introducers have also awarded us the industry-leading score of 4.9 out of 5 on independent review website Trustpilot, with one business owner saying, “Over 30 years in business I have dealt with a number of different factoring companies. Ultimate Finance have been by far the best with our Relationship Manager and their team giving friendly but professional service. They take a keen interest in our business and want to take time to understand our strategy for the future. My team also find the systems side very easy to use. Highly recommended”.

Keeping business moving

We have made delivering speedy, flexible, and simple funding alongside excellent personal service our mission, and our bespoke facilities and relationship-based approach to business funding have already helped thousands of business owners focus on what makes them successful without cashflow worries and unnecessary paperwork getting in their way.

Our Working Capital Finance offering includes sector specialisms for Construction and Recruitment, and a Trade Finance solution that can be provided with or without an Invoice Finance facility:

  • Up to £7m
  • Funding up to 95% of unpaid invoice value
  • Revolving facility that grows with a business
  • Dedicated Relationship Manager
  • 24/7 access to online account
  • Options to add confidentiality, collection services and debt protection
  • Sector specialisms for Construction, Recruitment and Trade businesses

How we can help

Find out more about our range of Working Capital funding solutions, register online to become an Ultimate Finance Introducer and start discussing your clients’ funding requirements with our team of experts, or get in touch with us to explore funding options for your business.

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Let’s get things moving

If you would like to talk to us about any funding needs, call us on 0800 121 7757, register as an Introducer or request a quote for your business today