We pride ourselves on service and speed of business funding.
CASHFLOW FINANCE
Invoice finance will generate capital for your business by utilising the invoices owed to you, typically 80‑90% of the invoice value as a prepayment. When the Invoice is paid, the remaining percentage of 10%-20% will come back to you. Facilities are either Invoice by Invoice, or on an ongoing basis.
Cashflow – It allows businesses to keep the cash flow moving, with typically 80-90% of the invoice value available to you. The remaining amount comes in once the Invoice has been settled. By giving a business the money and comfort of easy repayment, it can avoid the pitfalls of overtrading or running out of cash.
Efficiency – Most invoice finance companies offer forms of factoring. This means that they will manage your credit control and sales ledger. It takes away the workload of chasing calls and ensures you can focus on selling your product!
Speed – Most invoice finance providers can have a facility set up for you within a couple of weeks, making it a fast and easy option.
Security – Invoice finance providers advance against the invoices, so should you fail, they still have a way to settle the amount owed. It’s a secure way of raising finance and always something to consider.
Flexibility – Since money is being advanced against invoices, the more you raise, the more money it generates. It is a flexible way of raising finance that should ensure you have enough working capital.
Invoice Financing Vs Factoring
The market has two distinct product areas, factoring and Invoice Discounting.
Factoring – You outsource your credit control to the invoice finance provider, they make the chase calls and send letters. It’s a great way of relinquishing the burden of administration to someone else. They still advance the money and help collect it in supporting your cash flow both ways.
Invoice Discounting – This enhances your cash flow; however, you carry out all the administration of credit control. Often done confidentially, it’s an excellent way for large and medium-sized businesses to raise working capital.
Selective invoice finance is a modern UK funding solution, offering businesses flexible cash flow access. Simply upload an invoice to a platform and receive up to 90% upfront. Once paid, the remaining 10% is returned minus a pre-agreed, bundled fee for simplicity.
What Are The Benefits Of Selective Invoice Finance?Having a selective invoice finance facility allows a business to have full control of its sales ledger. They can choose to receive funding on invoices as much or little as they like. They choose what invoices they need funding on and what ones they don’t. Typically, an invoice financier will provide an online platform for a business to upload invoicing onto as required and in return receive upfront payments. It can be a lot faster to get set up than whole turnover invoice finance facilities. As a bonus most selective invoice financiers will provide credit insurance on the invoicing, giving you peace of mind and the ability to take on larger projects, orders, or work that you are being asked to complete. This in turn should allow you to increase turnover within the business and boost cash flow.
How Can I Set Up A Selective Invoice Finance Facility?Firstly, the business will need to get in touch with us. You can do this using the enquiry form at the bottom of this page. We will get to know how your business operates, understand the future plans in relation to turnover, projected work, and where you want to be in 12-24 months’ time. We will then gather the relevant information from you. Approach the most relevant finance companies for you and present the offers to you. Typically a selective invoice finance facility can be set up in as little as 48 hours making this a fast finance option. Saving you time and money. Factoring can apply for start-up businesses that need business finance. They may already know that cash flow could be difficult for tight
Factoring:
However, generally, an invoice financier will want to see a projected or current turnover of £5,000 per month. We can support with this if turnover levels are going to be close to or less than this. We understand almost every SME business in the UK must secure investment to grow. For larger corporate businesses invoice finance is prevalent due to the nature of the industry such as manufacturing where having positive cash flow is crucial.