Invoice Financing/Factoring
We can help get you the best, and right, invoice financing deal for your situation.
What is invoice financing?
In simple terms, Invoice Financing, also know as Invoice Factoring, is a way of selling your invoices to a factoring company or ‘provider’.
The factoring company will then instantly provide, or pay you, between 80-90% of the cash tied up in an invoice, so you can get back to running your business with money in the bank.
Call our team for free, no-obligation advice today on 0800 975 0380.
How does invoice finance work?
- You raise an invoice as normal when you make your sale
- You’ll then copy the invoice over to your provider or factoring company
- They’ll quickly verify the invoice before paying you up to 90% of the invoice total – instantly
- By boosting your cash flow this helps you to pay bills, invest in stock and expand your business
- Cut down the time you spend on credit control
Why should my business use invoice finance?
Invoice finance can be an easy way to get funds to a business quickly. We can help you get up to 90% of an invoice, released to your business within 24 hours. If you’re having problems with cash flow, growth or even spending enough time working on the business, then using an invoice finance facility, could be the solution to all those problems.
Our invoice finance services
Within our Invoice Finance options are, factoring, invoice discounting and spot factoring/ single invoice factoring. Although all work in a similar way each is slightly different and works best in different situations.
- Invoice Factoring – Factoring is a service where a lender makes an advance to your company, based upon the value of your invoices. Typically, they will lend up to 90% after assessing the quality of your invoices. The factoring company will then chase your invoices for you, before claiming what they are owed, along with their fees, and then returning the remaining balance to you.
- Invoice Discounting – Invoice Discounting works in a very similar way to factoring. However, it is normally for larger, more established businesses who want a confidential facility whilst retaining their own credit control function. During the process of invoice discounting, the business will collect its own invoices, accounting to the factoring company for any amounts due.
- Spot factoring/Single invoice – This is a fairly new product in the UK and can act as a stop gap to bridge short term cash flow issues. Spot factoring provides you with working capital in exactly the same way as factoring and discounting. It is designed to meet one-off cash flow shortages and doesn’t require the same long-term commitment. Spot factoring can cost more in fees so companies that require regular facilities will find full factoring or invoice discounting more cost-effective.
What types of invoice finance are available?
Invoice Factoring
Invoice factoring is a way for businesses to boost their cash flow quickly by selling their invoices to a third party. The responsibility of the sold invoices is then transfered to the factoring company. They'll chase up any unpaid money and the remaining balance is then paid to you, less a fee, once it is settled.
Invoice Discounting
Invoice discounting essentially accelerates cash flow from customers, it enables a business to receive cash as soon as the invoice is issued. The invoice is generally chased by you until payment is received. This ensures that your customers won’t know you are using a finance company.
Single Invoice
Single invoice finance, also known as spot finance, is a way of financing just one invoice at a time. It can be used as a quick solution to an unexpected late payment or a cash flow blip. It allows you to factor specific invoices that are causing your business problems and get a payment for them.
What type of businesses use financing and discounting?
Although both are similar in many ways, typically the two services will be used by very different types of businesses. Users of factoring are generally younger, smaller businesses – often with ambitious growth plans. They may welcome the fact that the provider will manage the ledger and collect invoices from the customers. In the right circumstances, it is also available to start-up businesses. The cost of Invoice Factoring is usually higher than that of Invoice Discounting.
Larger, established companies who don’t want their customers to know they are using a factoring company, will tend to use invoice discounting. This gives them more privacy when collecting invoices and it also allows them to have more control over how the invoices are collected. It also means that the company will not be charged for credit control services so is likely to cost less than factoring.
What can we do for you?
If you think an Invoice Finance would help your business, either with cashflow troubles or growing and progressing as a company, it’s vital to get the best and most appropriate deal. Invoice finance can provide an injection of cash to either aid a difficult period or take your business to the next level.
We can help you secure the best Invoice Finance deal for your business, designed to fit the needs and growth of your business. We work closely with many large providers as well as funders who offer more niche deals. This means we are able to get exclusive rates and deals that otherwise would be unattainable.problems
Get your invoices paid in 24 hours with invoice financing
What is invoice finance, also known as factoring?
Late payments from clients can lead to major cash flow issues for B2B businesses. Blips like this can lead to big problems with your invoices.
We have access to multiple invoice finance facilities that can free cash tied up in late invoices and get your cash flow back on track.
A healthy cash flow is crucial for businesses looking to grow. By boosting your reserves with invoice financing, you can implement growth strategies without delay.
Invoice finance (or factoring) is a general term used when a third party agrees to lend you money based against the value of your unpaid invoices.
An invoice finance company will advance money, normally between 70-90%, worth of your unpaid invoice.
Once collected, the invoice finance company will proceed by taking what they’re owed, along with their fees, before giving you the remaining balance.
There are three main types of invoice finance – factoring, invoice discounting, and spot factoring. These different options can immediately release cash and potentially ease cash flow issues.
How it works
Contact Us
Get in touch with us by completing our quick online form or by calling us on 01472 254914.
We’ll ask you a few questions about your company and your requirements to match the best provider for you.
We'll Search
Once we have the information we need we’ll match you with one of our providers (we have many to choose from).
We’ll find the right one for your situation at the best rates we can.
Cash In Account
Once we’ve found the right provider we’ll connect you and they’ll take it from there.
They’ll get all the paperwork sorted out and then you can start getting your invoices paid as soon as you issue them!
Find the best business finance deal for you and your company
Not sure which type of finance you need? Don’t worry we’ll help you select the right one based on your circumstances. That’s what we’re here for!
Call our team for free, no-obligation advice today on 0800 975 0380.
Frequently Asked Questions
The whole process can be sorted out within 24 hours if everything (details about invoices, statements etc) is available and there are no extra circumstances that need to be taken into account.
No not at all! We get paid out of the finance providers marketing budget. Instead of them spending money on advertising it is far more cost effective for them to let someone else do it. This means the savings can be passed on to you with better rates.