Loan Amounts and Funding Terms
Rolling contracts for as long as you need them
Finance amounts over £25,000
Do you have a minimum turnover of £100,000 per annum?
Are you a UK registered business?
Have you been trading for more than 12 months?
Invoice Finance is a type of business loan used to increase cashflow within an organisation. A business needs to maintain adequate cash flow, which will maintain its financial health to ensure operations flow smoothly. Waiting on unpaid invoices can affect a company’s ability to cover its costs.
These include paying suppliers, employees as well as general business overheads and other pay to day running costs.
We assist companies and borrowers to increase their spending power by obtaining the best funding options and facilities, quickly and efficiently, whilst ensuring your company requirements are fully catered for.
How to apply for invoice finance?
Fill out our application form in less than 5 minutes
Your application will be allocated to your dedicated case manager
Your case manager will be in touch within 4 working hours
They will collect all required documents to process your application
You will receive a decision within 48 hours in most circumstances
You will receive your funds within 48 hours of acceptance in most circumstances
The Benefits of Invoice Finance
Flexible Terms and Borrowing Amounts
Invoice finance is available over flexible rolling contracts allowing you to finance invoices as and when you need to.
You are able to finance up to 90% of invoices total without needing to wait for your clients to pay.
All proposals are subject to full underwriting & acceptance.
Invoice finance is quick and easy to arrange.
Once you have a invoice finance facility in place, you will raise an invoice directly to your lender who will process and payout in as little as 24 hours of receipt.
You are able to reduce the risk of non-payment by clients by choosing between recourse and non-recourse invoice finance.
With non-recourse financing, if your client fails to pay their invoice the lender will write off the debt, you will not be required to pay back what the lender has already paid you.
With recourse financing, you are liable for any unpaid invoices. If your client does not pay you then you are required to pay back the full amount financed by the lender.
Due to the lower risk for the lender, recourse finance is easier to obtain.
Invoice finance comes in many shapes and forms. To allow you to stay in control and find the best fit for your needs, many lenders will offer a range of options.
- Invoice Factoring (Ifac)
- Invoice Discounting (ID)
- Confidential Invoice Discounting (CID)
- Selective Invoice Finance (SIF)
- Spot Factoring
Invoice finance is probably the broadest type of lending in the financial market space. There are many subsidiaries to Invoice Finance that have been created to appease different borrower’s business sectors.
Invoice finance is the practice where an invoice is raised by the borrower to the client for an amount, the invoice finance provider will then provide the borrower with a percentage of the invoice day one, with the remainder due, once it has been paid by the client, minus their fee.
This can be very useful for cash flow when debtors pay on more than 30-day payment terms.
View our full range of business finance facilities here
Frequently Asked Questions
There are many different facilities in Invoice Finance, however the most common ones are:
- Invoice Factoring (Ifac) ) – This is a typical facility whereby the Lender will do all your collections on invoices for you. Very useful if you have a large debtors list and don’t have an in-house credit controller.
- Invoice Discounting (ID) – Exactly the same as an Ifac facility however, you will look after all your credit control.
- Confidential Invoice Discounting (CID) – A confidential ID facility whereby none of your suppliers or debtors will know of you using such a facility.
- Selective Invoice Finance (SIF) – This is where you can select specific invoices to have Factored in order to raise capital, the repayment works the same as a standard Invoice Finance facility.
- Spot Factoring - You choose one large invoice usually upwards of £50,000 as security to raise capital for the business.
You will raise an invoice to them once issued to the debtor and they will process this within 48 hours of receipt. Then depending on your facility type, when the invoice has been paid, they will provide you with the rest minus their fee.
You will have a dedicated account manager that will work closely with you and support your business in this transition. They provide you with an online portal where you can upload your invoices and drawdown on all funds.
You must have a minimum turnover of £100,000 per annum and take a minimum facility of £25,000.
There is no maximum coverage.
With all the major banks competing in the market for these types of facilities we can get as low as 0.2% per month as a service charge and 1.25% over base as an annual facility fee. The terms are up to you. We can source a provider that allows you to exit their facility on a month by month basis or work on an annual renewal.
When committing to annual contract you will find this is reflected in the cost, generally finding it considerably cheaper when making that commitment to the finance provider.
What is Invoice Finance?
Invoice finance is a way to fund slow paying invoices without having to wait for your clients to pay.
It is a type of business finance offered to companies who want to release money tied up in outstanding invoices.
There are two main types of invoice finance - Invoice Factoring and Discounting.
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What is Invoice Factoring?
It is a type of invoice finance offered to companies who want raise finance secured on their sales ledger.
Invoice factoring is also known as debt factoring and differs from the other type of invoice finance known as invoice discounting
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What is Invoice Discounting?
Discounting is similar to invoice factoring, however the main difference is that you still remain in control of your sales ledger and therefore debts. Because of this, fees tend to be lower.
SMEs are currently chasing £50 billion in late payments from outstanding invoices.
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