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Driving business growth with Invoice Finance

29-04-2024|Anthony Gougeon , Marketing Manager

Business growth can manifest itself in many ways: an expanding client base and order book, larger or additional premises, overhead increases , taking on new markets and adding new product lines, to name just a few. However, regardless of the ambition, success can be jeopardised by inadequate cashflow management. One of the pain points most commonly shared by businesses is waiting to be paid: it can make trading more difficult, slow down business, or, in a worst-case scenario, threaten the entire operation.

At Ultimate Finance we believe that gaining access to the right funding can help alleviate these pain points and accelerate growth, which is why we have spent over 20 years supporting UK SMEs with our range of tailored asset-based funding solutions. With over £10bn  of funding provided since 2002, we have already helped thousands of businesses meet their ambitions.

When looking to develop a resilient cashflow strategy, Invoice Finance is an effective and adaptable solution to address liquidity needs. Whether it is for supply chain payments or ensuring employees can be paid on time, it provides access to greater flexibility and forward-planning.

What is Invoice Finance?

Invoice Finance is a simple revolving line of credit where a business that sells to other businesses on credit can access the cash tied up in unpaid invoices. Once an order is fulfilled and an invoice issued, a proportion of the invoice value is made available to drawdown, with the remainder (minus an agreed fee for the service) accessible when the invoice is paid.

It has proven to be an efficient way to reduce the day-to-day pressures of cashflow management and boost working capital. Instead of waiting weeks (or even months) to reinvest the funds that are due, the cash tied up in an invoice is made available as quickly as on the same day of raising it. And since the sales ledger is used as an asset to secure the funding, it replaces the need for any unsecured or personal loans to be taken out by the director(s) of a business.

How does Invoice Finance work?

The lender will agree on what proportion of the invoice can be made accessible at time of raising: at Ultimate Finance, we provide up to 95% of an invoice value on the same day it is submitted to us. Customers then repay their invoice directly into a dedicated bank account, and the remainder of the cash minus a small service charge is transferred to the business.

There are a few variations of Invoice Finance: you may have heard it referred to as Discounting, or Factoring, but at Ultimate Finance we keep the terminology as straight-forward as possible as we are too aware that Invoice Finance has suffered from appearing too complicated for too long.

The main difference centres around who manages the collection process: with Factoring, the lender not only advances funding, it also looks after the collection of debts due to your business. This can provide many benefits, mainly with operational costs and requirements, and the reduction of possible bad debts thanks to the expertise of the provider. With Discounting, your business remains in charge of the collection efforts, which can be advantageous if you wish to keep full control of the relationships you have with your customer base.

And the flexibility doesn’t end there: there are debtor protection options to help protect from the negative impact of potential non-payments, and sector-specific declinations such as Construction Finance and Recruitment Finance.

Driving Business growth through long-term relationships

Having developed an extensive Introducer network over the years, we work with businesses of all sizes in all industries and have a proven track record of helping businesses on their growth journey with Invoice Finance.

With our funding solutions, businesses have access to vital cashflow that can be used to invest into their operations, buy equipment, pay suppliers, hire more staff, undertake marketing campaigns and so on. Importantly, one of the most praised features of how we deliver our solutions is the support our Relationship Management teams provide. Not only have our services been recognised in the financial industry through several awards over the years, existing clients and Introducers have awarded us an excellent score of 4.9 out of 5  on independent review site Trustpilot. Most recently, one client said, “Highly recommend Ultimate Finance. We have worked with them for six years now. Brilliant communication with our relationship manager and the team. The support offered is excellent, high service and very knowledgeable. The facility has enabled us to work more efficiently”.

Keeping business moving

With our facilities, and through the long-term relationships we build with our customers, we focus on delivering funding with speed, flexibility, simplicity and excellent personal service so that businesses can focus on what makes them successful rather than worry about finances and paperwork. That’s because we believe in becoming the funding partner of choice for Introducers and business owners across the UK, and we know that to do so relies on providing easy and tailored access to the right funding at the right time.

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 Management team
  • 24/7 access to online account
  • Options to add confidentiality, collection services and debt protection
  • Sector specialisms for Construction, Recruitment and Trade businesses
  • Rated Excellent on Trustpilot

 Find out how we have already helped thousands of businesses meet their ambitions in our collection of success stories.

How we can help

To become an Ultimate Introducer, register online in one click today, or contact us to find out how our funding solutions can help keep your business moving.

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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