What is Invoice Finance?
This unlocks cash tied up in unpaid invoices so that your business receives payment without waiting for customers to pay which makes cash flow management easier for your business. Invoice Finance providers may also manage credit control routines so that you can focus on other aspects of running your business.
So how does Invoice Finance Work?
You sell Business to Business and offer credit terms of 30 days.
In the 30 days between you issuing the invoice and your customer paying - you will still have to fund your business.
Invoice Finance gives you an immediate cash advance against the invoice you have rendered to your customer which keeps your cash flowing without any delay.
It's like selling for cash without giving any credit terms.
The facility can be arranged by independent, or bank-owned finance providers. There are many product variations so we will always seek to explain the differences between competing offers. It can help with supporting rapid growth, funding large contracts, MBO/MBI and unexpected costs. It also links well with purchase finance products which we can also source for you.
Invoice Finance is an established source of working capital finance in the UK.
The Advantages of using FundingBusiness for Invoice Finance
As we are independent and have many years experience as lenders in this market, we know the best of what's on offer... we work with a wide range of Invoice Finance lenders, this means we can seek to get the most suitable offer for you.
We do this by;
- Working with a lender who understands your business sector.
- Understanding how you invoice, whether that be on a straight forward project, staged or gradual sign-off basis
- Working around previous credit issues or any periods of business losses
- Working around concentrated debtor books where one debtor forms the majority of the outstanding ledger
- Understanding how quickly you need to access cash, working with lenders who can fund invoices the same day