Improve your cash flow by getting immediate payment on your invoices
Invoice finance pays you for your invoices, so you do not need to wait for clients to pay. Having clients who pay on 30 days, 60 days or even 90 days payment runs can be a massive strain for a lot of SME businesses. If you overdraft isn’t large enough to cover things then invoice finance is the perfect solution for your business.
There are different versions of invoice finance available, these differ to allow the business financing solution to suit your requirements. The 2 main options for invoice finance are invoice discounting and invoice factoring.
Invoice discounting is a form of invoice finance that arranges to pay all of your invoices up front. This is best for larger companies who have clients that are regular and have consistent regular payments.
Invoice factoring is a form of invoice finance that allows you to cherry pick which invoices to finance. This makes the process more convenient if you have a large variety of clients in different sectors.
Invoice finance FAQ
How much of my invoices can be funded?
Usually we can get approval for up to 90% of the value of your invoices.
Is invoice finance unsecured?
Usually yes, but dependant on the type of invoice finance you choose a floating debenture may be required.
My business is a start-up, can I get invoice finance?
Maybe, it depends on your business and its predicated performance, but it is not impossible.
I have poor credit, can I still get invoice finance?
Yes, not all of our lending partners will work with you, but there are several who will.
Are there any business sectors that invoice finance cannot be applied to?
Not really. Many lenders will shy away from working with companies within the construction sector, or if your business has a lot of foreign clients. But we do work with several specialist lenders who can still offer invoice finance to these types of companies.
What are the costs for invoice finance?
The exact amounts charge depends on your business and also the type of invoice finance you choose. But expect to pay a fee of between 1% and 3% for the facility and then around 1.5% – 3% on the value of each invoice financed.
If all of this sounds good and you think invoice financing is the product for you, please give us a call or email us to make contact.
Or if you feel that invoice financing is not suited to your needs please check out our other business finance services.