Invoice Finance.

Managing cashflow is essential to the success of any business. If you issue invoices for goods or services to other businesses and find yourself waiting to be paid or managing late payments, Invoice Finance can offer many benefits to businesses. If any of these situations sound familiar, invoice finance could give your business the cashflow injection it needs. By releasing cash against your outstanding customer invoices before they’ve been paid you can manage your cashflow, and your business, more effectively. In our guide, we explain what invoice finance is and how it could benefit your business.

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There are two types of invoice finance products: factoring and invoice discounting, the biggest difference between them being who collects the customer payments. Each allows you to release a large proportion of an invoice’s value within 24 hours of its issue. Then, once your customer has made their payment, the remaining balance is paid to you, minus any fees. Many businesses that use invoice finance also add bad debt protection to make sure that they still receive payment if their customers can’t settle their invoices. This is known as non-recourse factoring.

Factoring is an attractive option for smaller businesses, whose resource would be better spent on day-to-day activities. Because our dedicated credit control team collect your outstanding invoices, your time is freed up to concentrate on running your business.

Invoice discounting is similar to factoring, in that it gives you access to cash as you issue new invoices. However, a key difference is that you’ll be responsible for collecting your payments, while your use of an invoice finance product will be kept completely confidential from your customers.

BOOST YOUR CASHFLOW WITHOUT THE NEED FOR DEBT
Because invoice finance is not a loan, you’re not taking on any debt. This keeps your cashflow healthy.

MORE TIME AND RESOURCE TO FOCUS ON YOUR BUSINESS
If you choose factoring, you get a dedicated credit control service, allowing you to focus your time and energy on your business.

MINIMISE LATE PAYMENT AND BAD DEBT
To safeguard your business, you can choose to add bad debt protection. This is known as non-recourse factoring, where we take on your bad debt risk, unlike recourse factoring, where the risk of not being paid by your customers remains with you.

REALISE OPPORTUNITIES
With an improvement in cashflow you’ll be in a better position to realise new opportunities, take on new orders or expand and invest in your business.

TAKE ADVANTAGE OF DISCOUNTS FROM SUPPLIERS
You will be able to take advantage of volume discounting deals with your own suppliers as you will be in a position to buy larger units or to take advantage of supplier discounts for early payment.

GET TO KNOW YOUR CUSTOMERS BETTER
We can give you useful information about the credit standing of your customers, which can help you to negotiate better terms with your suppliers. It also means you can take on better quality customers and improve your debt position between more customers instead of concentrated in just a few.

START-UPS
One of the main challenges for anyone starting a business is securing financing for their new venture. Invoice finance gives you quicker access to cash without worrying about building up debt. Also, because it’s flexible, your credit can increase quickly to accommodate your growing sales, allowing you to build your business more easily.

BUSINESSES WITH GROWTH ASPIRATIONS
Without the necessary funding in place, expansion plans often stall. Invoice finance can turn your ambitions into reality, freeing up cash so you can invest or expand your business.

BUSINESSES ENTERING NEW MARKETS
While exporting can have significant benefits, selling goods or services to overseas customers can present a number of financial challenges. Invoice finance can help you overcome unpredictable payment cycles, giving you access to money tied up in invoices without having to wait for bills