Invoice Finance

Invoice Finance is a way of borrowing money using outstanding invoices due as the security. The lender agrees to pay your business an agreed percentage of the invoice value as soon as that invoice is issued to one of your customers, with the balance being payable when the invoice is settled in full.

Typically, there are two kinds of Invoice Finance – Factoring and Invoice Discounting. With Factoring, as well as advancing the cash, the lender also assumes responsibility for managing the sales ledger. With Invoice Discounting, the facility can be confidential.

Key Features

• No waiting for 30 – 90 days for payment
• Invoices are normally funded on day one of issue so you get an immediate injection of cash
• Take control of debt collection – choose between a facility whereby the lender collects the due amount on your behalf, leaving you to run your business (Factoring), or keep control of collecting due funds yourself, paying the lender their fee once you have received payment (Invoice Discounting)
• Revolving Credit – due to the fact that you constantly repay due invoices back into the facility, you can continue borrowing within your agreed limit
• Support for growth – your lender will often leave room for growth when agreeing your facility size and increase the limit as the business grows, keeping you ahead of the game.