Invoice Finance

What is Invoice Finance?

Invoice Finance give you cash flow in the business. Facilities on your outstanding invoices so you don’t need to wait months for the payments. All B2B large and small business can get invoice finance. Fast and simple process with suitable type like Invoice Factoring, Invoice Discounting and selective invoice finance.

Is my business eligible for a secured business loan?

  • Actively trading
  • UK Businesses
  • Should have invoices
  • B2B Businesses

How does it work?

If you have invoice which is unpaid and the is due date for the repayment so you can get invoice finance to run the business smoothly. You don’t need to wait for the customer settlement.  It’s usual get approved within 24hours. You can get up to 95% on you invoice. Don’t need to change any method in the business you can run your business traditional as you are doing.

What are the rate and fees involved?

Discount rate is also known as Factor rate. The rate and fees usually start with 1% to 5% depending on amount and the value & volume of invoice. The administration and stander service charge may be added by the lender.

Example:

If the business needed money for working capital on immediate basis against invoice. So, they can get the funding. Usually, 95% of invoice can be funded. There will be a fix rate for the facilities’ called as discount rate. Let’s assume if the value of the invoice Is £50000 and the lender decided to offer 95% so the funding will be £45000. And the discount rate is 3% that is £1500. Remaining amount with be clear once the invoice is settled by the customer.

*Invoice value = £50000
*funding amount (95%) = £45000
*Factor rate (3%) = £1500
*Remaining payments £3500 (at the time of invoice settlement then customer make the payments)
*Total Cost on the facilities = £1500

What are the type of invoice finance?

  • Invoice Discounting Finance
  • Invoice Factoring Finance
  • Selective Invoice Finance

Invoice Discounting Finance: This can offer you up to 95% of your invoice. It’s a confidential finance on invoice between Borrower and their customer. Borrower can mange their own credit control, Borrower’s customer will not know about the Facility.

Invoice Factoring Finance: Same like invoice discounting you can get up to 95% of your invoice in Invoice Factoring finance. You can sell your invoice in this facility to the lender for an agreed amount. They will act like credit controller in your behalf where you can focus on your business and the lender will follow up with the customer for the update on payment. This is not confidential like Invoice discounting.

Selective Invoice Finance: Its a fastest and simple way of invoice finance also called as Spot invoice or single invoice. You can get finance against invoice when you needed. You can manage your own credit control for the payments. Usually, it does not require entire sales ledger hence its fast to proceed.

What are the advantages or merits and disadvantages or demerits of Invoice finance?

Advantages or Merits

  • Perfect solution for cash flow
  • Get fastest funds
  • Don’t need to chase the Payments
  • Option to confidential service
  • Sell Multiple invoice

Disadvantages or Demerits

  • Only with B2B
  • Your customer may know
  • Confidential service on demand

What are the documents required for an Invoice Finance loan?

  • Invoice
  • Sales ledger

How long does it take to be approved?

It takes 24 to 48 hours for the Conclusion.

Frequently Asked Questions

You can get unto 95% of you invoice amount.

Yes, with Invoice Discounting finance it will be confidential.

It doesn’t require property or collateral in some cases it require debentures.

Not to worry, we have the options for short term loan like Unsecured loan.

We are the experts we know what are the suitable product is available for your business.

If Invoice finance wouldn’t work, we can try for Revolving credit facility were you just have to pay interest on a monthly basis. Which can help your business for cash flow for the time being.

Find The Right Business Finance Solution Today!

See your funding options in 2 minutes.

Apply Now