Invoice Financing

When a business sells goods or services on to another businesses, they normally allow the customer a fair period of time to settle the invoice e.g. 30 days.

Invoice Financing helps to support cash flow by giving quick access to the cash without needing to wait for the invoice to be paid.

A business can use their unpaid invoices as security and release up to 95% of the invoice total to inject back into their own business without delay.

There are two main types; Factoring and Discounting.

Invoice Factoring: The lender will help with credit control by collecting/chasing the payment on behalf of the business. This can sometimes be arranged as a white labelled service so that the customer is not aware of the arrangement.

Invoice Discounting: The business will continue to collect/chase the invoices due and pay the lender a fee/interest once the payment has been received.

For a business with income tied up in unpaid invoices this can be a valuable solution to speed up their growth.