Invoice Finance
Invoice Finance is a type of finance that is secured by the funds supplied to you are secured by the debtor book of your business.
Invoice Finance is the umbrella term for specific products such as invoice discounting and factoring.
Invoice Finance – How it generates cash
- Invoice discounting and invoice factoring facilities will allow you to transfer your invoices to an invoice factoring company who will release up to 90% of the gross invoice value. (the balance is paid to you less charges when your customer pays)
- Invoice finance is a flexible form of working capital that grows in line with your sales.
Is Invoice Finance suitable for your business?
Invoice finance is a valuable source of working capital for many businesses. It could be right for your business if:
- You raise invoice on credit terms to your customers.
- You raise these invoices in arrears of the goods or service being delivered.
- Your customers are other businesses.
- You require additional funds to help cashflow.
What is the difference between invoice discounting and factoring?
Firstly it is important to say that both can release up to 90% of the value tied up in unpaid invoices so both a valuable sources of cash flow finance.
With factoring the invoice finance company will provide funding against the invoices but typically they will also provide a credit management service. This means that they will chase your outstanding invoices in a pre-agreed manner using a combination of letters, statements and telephone calls.
An invoice discounting facility will provide funding against invoices but will not get involved in chasing your invoices.
How can Invoice-Finance.com help you?
- We are a free online resource that helps businesses source the most suitable invoice finance facility from the most suitable invoice finance provider.
- We work with the full market of invoice finance companies ranging from the high street banks through to specialised independent invoice finance providers.
- Our specialist team can offer valuable advice and insight – this is all that we do. You are dealing with the experts.
Contact Us
If you have an invoice finance facility or are interested in SME invoice finance, please contact us on 0845 863 0738 or click for our free invoice finance quote.