Invoice Finance Facilities

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.

RLA Capital Limited can offer invoice finance, either invoice discounting or factoring to enable your company to increase readily available funds, whilst waiting on unpaid invoices.

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 cashflow when debtors pay on more than 30-day payment terms.

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.

Invoice Finance loan amounts

What type of Facilities are available?

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.
Invoice Finance loan eligibility

How does it work?

When you sign up to an Invoice Finance provider, they will take a first charge debenture over the book debt in 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.

Apply for Invoice Finance loan

Who do we lend to?

We can lend to any trading business that invoices on a business to business basis (B2B).

You must have a minimum turnover of £100,000 per annum and take a minimum facility of £25,000.

There is no maximum coverage.

invoice finance funding

How much does it cost and how long is the term?

This fluctuates depending on several factors; the applicant’s personal and business credit, quality of debtors, size of facility and personal net worth (PNW).

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.

How much will I get day 1?

This figure fluctuates massively across business sectors and quality of debtors, for example construction companies get hit with it the worst following the crash in 2008 and are funded day one typically up to 65% on the invoice value, however when looking at recruitment we can get up to 100% of the invoice total.

How long does it take before my money is available?

This can be completed very quickly. We work with some of the best Invoice Finance providers in the UK who will be out to see you at your nearest convenience and look to have the full facility within 2 weeks.

RLA Capital have over 40 years of experience in providing specialist bridging finance facilities. This coupled with our outstanding customer services levels and extensive funder panel leaves us best placed to benefit your business in this area. Please do not hesitate to contact a member of our dedicated team to discuss further.

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