Invoice Finance Helps with your business cash flow bottlenecks.
Short-term borrowing against your outstanding invoices.
Sell unpaid invoices to a third-party factoring company.
Helping Your Invoice Finance Needs
Overview of Invoice Finance
Invoice Finance is a way of lending money based on what your customers owe to your business. Unpaid invoices represent money that will be paid to you, but you have to wait for the payment terms to elapse. This could be anything from 14 days to 90 days or more. Invoice finance gets you most of the cash immediately, so you don’t have to wait to get paid.
The concept is simple — rather than waiting days or weeks for your invoices to be paid by customers, lenders advance you most of the value immediately. That means you get paid faster for completed work allowing you to focus on running your business.
Invoice Factoring is a financial product that enables businesses to sell unpaid invoices (accounts receivable) to a third-party factoring company (a factor).
The factoring company buys the invoices for a percentage of their total value and then takes responsibility for collecting the invoice payments.
Invoice Factoring is an increasingly popular form of alternative business funding and has the following benefits:
- Credit control services: the lender handles collecting payment from your customers.
- Factoring providers can credit check potential customers for you.
- Easier to secure for small or early-stage companies.
Invoice Discounting is a form of short-term borrowing against your outstanding invoices. It is usually used to help improve a company’s working capital and cash flow position. With invoice discounting, you maintain responsibility for your sales ledger, payment chasing, and invoice processing.
- Invoice discounting can be arranged confidentially, so your customers will have no idea you’re borrowing against their invoices.
- You keep managing your own credit control and debt collection for customer accounts, helping you to build and maintain closer relationships with your customers.
- Invoice discounting is cheaper than factoring.