Invoice Finance (also known as invoice factoring or invoice discounting):
Invoice finance is often an easier way of releasing cash from your sales ledger and it can also leave you with more time to focus on running your business, as you don't have to chase customer payments.
Growing businesses in particular can often find it a more flexible source of working capital than overdrafts or loans.
How invoice finance works:
- You raise your invoices in the normal way.
- Your invoices are sent to the finance company after you've raised them.
- Funding is released based on these invoices, making it easier for you to meet day-to-day financial commitments.
- When the invoices are due, experienced and professional credit controllers will collect payment on your behalf from your customers in the UK or overseas.
The benefits of Invoice Finance:
- Maintain working capital
Access the vital working capital tied up in invoices and concentrate on growing your business.
- Take advantage of professional sales ledger management
A dedicated Invoice Finance Manager and a Credit Controller can run your sales ledger for you.
- Guard against late payment and bad debts
Protection is available to guard against late or non-payment of invoices.
- Benefit from our overseas service
Factoring can be used for both your UK and international sales.
- Arrangement fees apply.
Invoice finance is sometime referred to as cash flow finance. As we know cash is the lifeblood of any business and there are some funders who are rigid in their criteria and dealings with their clients. The good news is there are others who are much more flexible and will tailor the product to your individual situation and be flexible if things change. As we know things often change in business.
It is really important to pick the right funder for you which is why it is really helpful to speak to someone like us (someone independent) as we only ever want the best solutions for our clients. We will only ever work with funders who have an ethical approach and who put their clients (and ours) at the forefront of everything they do.