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YOUR APPROVED QUICK GUIDE TO INVOICE FINANCE

Updated: Nov 22, 2023


invoice finance

If your business regularly generates invoices for customers, Invoice Finance might be a valuable cash flow strategy for your business. So, why wait? Get paid fast and efficiently. The product is simple, lenders pay you in advance for the value of the invoice immediately. Instead of waiting days or weeks for your invoices to be paid by customers, your business can get paid faster for completed work, allowing you to concentrate on running your business.


TABLE OF CONTENTS


What is Invoice Finance?


This product offers a simple solution: lenders pay you upfront for the value of your invoices, allowing you to receive payment faster instead of waiting for your customers to pay over days or weeks. This helps your business focus on operations.


Invoice finance takes different forms, like Invoice Factoring, Invoice Discounting, and Spot Factoring. It's an accounting method where businesses borrow against their accounts receivable to quickly generate cash. Lenders pay you upfront for invoice value, expediting your payment and letting you concentrate on your business.


If your business regularly invoices customers, Invoice Finance can enhance your cash flow. Don't delay – get paid quickly and effectively. We provide a streamlined process, fast approval, and customised monthly repayments to find the best deal for your business. Check your eligibility for business loans within seconds.


Why use Invoice Finance?


Invoice finance – either invoice discounting or invoice factoring – has several advantages over many other forms of business borrowing.

  • The invoices are the loan security. Usually, there is no need for additional collateral

  • It is scalable – as your turnover grows, your access to immediate cash expands

  • It is flexible – most businesses who meet the minimum criteria can apply

  • Factoring can reduce your accounts receivables administration

  • Invoice financing is confidential. Customers remain unaware of your borrowing

  • It is speedy. Unlike standard bank loans, approval for invoice finance funding can be quick.


Invoice Finance FAQ's


My business is profitable, why would I need external funding?


Every business needs operational funds for vital tasks like paying suppliers, employees, rent, and overheads. Even profitable businesses can lack enough liquidity for these commitments. Cash, crucial for survival, is vital among profitability and positive cash flow.

Cash flow issues can emerge when a business spends on goods and services before getting paid by clients. External funding might be needed for ongoing operations.

With traditional external financing harder to access for many owner-managed businesses, invoice finance is gaining popularity. If your business covers daily expenses, external funding could be the growth solution


How much money could I release using Invoice Finance?


This all depends on how much cash you have tied up in unpaid invoices.

But to give you a guide as to the amounts of money we’ve funded businesses with in the past, it can be as little as £25,000 or as much as £5 million!


How is Invoice Finance a better choice than bank funding?


Invoice Finance options offer a notably secure and adaptable funding alternative for numerous SMEs, surpassing bank credit lines.


Given that you're solely leveraging forthcoming invoice collections—leading to a bolstered cash position and diminished accounts receivable—you're free from the obligation to repay loans. One of the prime advantages of invoice factoring over bank loans is its absence of debt creation. Assuring contract certainty (non-demand repayment) along with heightened funding tied to sales, not historical financial performance, will greatly benefit many businesses.


How quick is the decision-making process?


Being an independent business enables us to quickly respond to all inquiries. You can expect a call from us by the following business day after your initial contact.


After our initial discussion about your funding needs, our proactive team is ready to expedite the process according to your timeline, considering your urgency for a solution.

Assuming a seamless progression, you could establish a facility with us in less than 10 working days!



HOW DOES IT WORK?


We keep our business finance options transparent - no hidden fees or nasty surprises. This is business finance made easy. Our no-obligation application won't impact your credit score.



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