Invoice Finance
Get quick access to the cash that’s rightfully yours!
- Release up to 100% of your invoice value
- Fast, flexible and stress free money within 48hrs
- Choose from the best providers in the UK
Wouldn’t it be great to have quick access to the cash that’s rightfully yours?
Lengthy payment terms and late customer payments can place pressure on you and your business, making it hard to keep up with day-to-day financial commitments. Invoice finance can improve your company’s cash flow by releasing up to 100% of the funds tied up in unpaid invoices.
It’s fast and flexible and allows you to spend less time worrying about chasing payments and more time where it matters most – growing your business!
What is invoice finance?
Invoice finance is a great option for any company looking to improve cash flow.
Whether you’re a small business or a large international corporation, invoice finance can help. Let’s be honest, running a business is never straightforward, and with invoices taking anywhere from 14 to 120 days to be paid, sometimes you need access to your cash fast!
That’s where invoice financing comes in.
Instead of waiting weeks for customer payments, you can release up to 100% of the cash you are owed in as little as 24-48 hrs. Invoice finance is also an excellent option if you don’t have the assets available to secure traditional funding options as the only collateral you need is your unpaid invoices.
The speed and flexibility of invoice financing can ensure you get access to the cash you need, when you need it!
How does invoice finance work?
Business as usual: You do what you do best and sell your services or products to your customers and issue the invoice for payment.
‘Sell’ your invoices: You decide how much of your sales ledger you want to release cash against. Your invoice finance provider will then buy the outstanding debt on those invoices.
Get your cash: Within 24-48 hrs you will receive up to 100% of the value of your sold invoices directly into your bank.
Customer pays their invoice: Whether you choose to stay in control of your sales ledger through invoice discounting or decide to let the provider take care of chasing payments with invoice factoring, once the customer pays their invoice the funds will go directly into the invoice finance provider’s trust account.
Receive the balance: Once the funds have been cleared and any pre-agreed fees and charges have been taken by the provider, you will receive the remaining invoice balance.
What are the benefits of invoice finance?
Fast
Funds are usually released within 24-48hrs. No need to wait for customers to pay.
Flexible
You decide how much cash you’d like to release and when. Funds can be used as and when your business needs it.
Improved cash flow
Pay employee salaries, purchase supplies or invest in business growth. Ensure you always have the cash you need to keep your business moving.
Maintain business relationships
You can continue to offer the payment terms that work best for your customers.
Reduced stress
Take away the worry of waiting for payments and focus on running your business.
Remember, every business is unique so it’s important to get expert advice to help you weigh up the pros and cons for your specific situation.
Don’t just take our word for it, listen to how our customers rated us excellent on TrustPilot
What are the different types of invoice finance?
There are several types of invoice finance available to help you take control of your business cash flow and get back on the path to financial stability.
Invoice Factoring
Invoice factoring is a dynamic financial tool that converts your unpaid invoices into immediate working capital.
How does it work?
You submit your unpaid invoices to the provider who will advance you a percentage of the value, usually within 24 hrs. The provider takes charge of the collection process and ensures your customers pay their bills on time. Once paid the provider will pay you the remaining balance less any fees.
Benefits
Invoice factoring allows you to improve your cash flow with a quick and convenient cash boost. You can say goodbye to the stress of chasing payments and benefit from a more streamlined financial process. It’s straightforward, flexible, and scalable and allows you quick access to the funds you’re owed.
Invoice Discounting
Invoice discounting is a confidential service that allows you to keep charge of your credit control processes.
How does it work?
You submit your unpaid invoices to the provider and receive a percentage of the value. You retain control of your credit control processes and your customers will continue to interact directly with you. Once the customer has paid the invoice you receive the balance minus any fees.
Benefits
Invoice discounting allows you to improve your cash flow without interrupting your customer relationships. It’s a discreet and confidential way to ensure your business continues to run smoothly.
Spot/Selective Factoring
Spot or selective factoring allows you the flexibility to choose which invoices you want to release cash from, rather than committing your entire sales ledger.
Benefits
Selective factoring means you can manage your cash flow strategically. Select the invoices that align with your current financial goals and make informed decisions about your business’s financial health. It’s a perfect balance between flexibility and control.
CHOCCS (Client Handles Own Credit Control Service)
A hybrid offering of invoice factoring and invoice discounting. A great option if you’re a newer company and don’t yet meet the criteria for invoice discounting. It is also good if your company raises multiple lower value invoices.
Benefits
If you have established credit control processes in place, CHOCCS can offer you the advantages of invoice factoring while still allowing you to remain in control of your customer relationships.
What type of invoice finance is right for me?
Well, the best way for us to answer this question is of course by talking to you directly! So, if you’re ready to have a chat about your specific needs then give us a call now on 0207 001 9142 or fill out our form and let us call you back.
But if you’d like more information before picking up the phone, then let us help by explaining the differences between the 2 most commonly used invoice finance options below.
Invoice Factoring vs Invoice Discounting
Out of the various types of invoice finance the two most popular are invoice factoring and invoice discounting.
Whilst both options offer fast access to the cash you need, there are key differences that you will want to consider when deciding which option is right for you.
The most notable difference between invoice factoring and invoice discounting is who is in control of the sales ledger, who takes responsibility for collecting payments, and the level of confidentiality involved.
Let’s compare the 2.
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To find out more about the differences between invoice discounting and invoice factoring and to help you evaluate which one may best suit your needs, read our blog Invoice Factoring vs Invoice Discounting or contact us now on 0207 001 9142 and let one of our expert advisors guide you through your options.
Invoice Finance Calculator
Invoice Finance Calculator
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What industries can use invoice finance?
Invoice finance can be used across a wide range of industries. Below are some of the industries that commonly use invoice financing.
Can’t find your industry? Don’t worry! Call us now on 0207 001 9142 to discuss your business needs.
Is invoice finance a good idea?
If your business is in need of a cash flow boost and you are looking for a flexible solution, then invoice finance can be an ideal funding option. Releasing up to 100% of your outstanding invoice value within 24hrs can eliminate months of waiting for customers to pay and allow you to keep on top of your business costs and invest in further growth.
However, keep in mind that invoice finance is not designed to be a replacement for revenue. If you are currently suffering from low revenue, then you should consider other business finance options to help you through this period. Our team of expert advisors can help you decide whether invoice finance is the best option for your circumstances. Contact us now to find out if invoice finance is right for you and receive a free no obligation quote.
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