By Jeffrey Eow

Operations Director

Invoice finance services such as Factoring or Invoice Discounting provides your business with cash, by allowing you to raise finance from the unpaid invoices owed to you.

For many businesses, outstanding sales invoices are their largest asset with up to one quarter of a business’s overall yearly turnover remaining unpaid at any one time. This “locked up” cash can greatly impact the growth potential of a business and may sometimes force a business into insolvency.

There are both advantages and disadvantages to businesses raising cashflow this way, so businesses owners need to be careful about not jumping into a factoring or invoice discounting facility without clearly thinking it through.

We can help you obtain an invoice finance facility to release cashflow that can be used in almost any way you see fit. Perhaps your business needs to make pay staff or buy products, or perhaps you are looking to expand and grow your business. The flexibility and lower costs than other forms of finance offered by this sort of business finance is one of the reasons it is so popular among UK businesses.

• Up to 90% of invoice value available immediately with the balance when the customers pay
• Open ended facility – Finance grows in line with sales
• Invoice finance Can Be Used for Almost any business sector
• Low Interest Rates
• Fast Approval
• Available for new start businesses

invoice finance business cashflow

Even though a business may be trading profitably, it can still fail if cash is not available. Factoring is a method used by a business to obtain cash when the available cash balance held by the firm is insufficient to meet current obligations and accommodate its other cash needs, such as new orders or contracts. Factoring releases the cash tied up in unpaid credit invoices and allows a business to grow and compete with large or more established businesses.

Obviously, any loan scenario is subject to the borrower’s credit history and ability to repay. A more favourable financial position allows for more favourable loan terms. This includes higher borrowing amounts and lower interest rates.

OTHER ADVANTAGES TO CONSIDER

Invoice factoring offers a number of advantages to businesses over other forms of finance. However, it is important to understand how a facility works before making a decision on whether to undertake invoice financing.

Benefits

The principle benefit to any business of invoice factoring is that it provides quick, timely and significant increase to a company’s cashflow. This is an important aspect to businesses short of working capital, especially when finance of 80% of outstanding debt can very often be leveraged. Other principle benefits include:

• Sales ledger can be outsourced, freeing up resources
• Money is available from your sales ledger as soon as it is invoiced
• Money is available for any business purpose such as funding advance orders or capital investment
• Non-recourse factoring offers protection from bad debts
• The factoring provider can provide valuable information about the credit rating of your customers
• The factoring provider can sometimes assist in negotiating better terms with your suppliers
• You do not have to deal with customers attempts to delay payments and often customers will pay more promptly because they are dealing with a professional factoring company
• Provides a smoother cashflow and allows for improved financial planning

Our invoice finance experts use in-house systems to quickly search the whole of the market for the deals that not only meet your requirements but offer the best rates and terms depending on your personal circumstances. They will compare these deals side by side and make their recommendations along with a fully transparent analysis of all the costs that would be incurred before you make any decision to proceed with an application.

Because our team specialise in invoice finance we have a full understanding of each individual lenders underwriting processes. The things they like, the things they don’t like, the level of risk they are prepared to take and what charges and rates they place on that level of risk. Our experts will be in a position to help you choose the best provider with the best deal and make an application on your behalf that has the highest chance of gaining swift approval from the provider.

Call Us For FREE Expert Advice on Factoring, Invoice Discounting and Invoice Finance options.

We source the best factoring, invoice factoring and invoice finance deals from the whole market

• Up to 90% of invoice value available immediately with the balance when the customers pay
• Open ended facility – Finance grows in line with sales.
• Invoice finance Can Be Used for Almost any business sector.
• Low Interest Rates.
• Fast Approval.
• Available for new start businesses.