Invoice Finance

Invoice financing is a method of releasing capital from unpaid invoices. It works by advancing businesses' money based on their balance of debt or outstanding invoices owed to the company. Once the customer has settled the payment, the business receives the remainder of the balance, less a fee.

invoice finance is a quick and effective way to raise funds for businesses with prolonged invoice payment terms. Because of the quick access to our invoice financing option, the cash released from invoice finance can be used to run the business and meet its daily obligations, including paying employees and supplying new clients.

How Does Invoice Financing Work?

Invoice financing involves three primary entities: the lender, the business, and the customer. The business provides the customer with services or products and sends them an invoice. They also send a copy of the invoice to the lender, who gives the business an advance payment on the outstanding invoice instead of waiting 30 to 90 days for the customer to make the payment.

The business's customer then pays the invoice to the lender. Once the lender receives the payment, it deducts its fees and sends the balance to the business.

This financing method enables businesses to access cash upfront without the hassle of managing loan repayments and sinking deeper into debt.

Who is Invoice Financing For?

Invoice financing leverages cash tied up in a business's unpaid invoices, making it ideal for businesses with strained cash flow due to awaiting payments.

It is advantageous for companies in industries with lengthy payment cycles, such as manufacturing and consumer goods, and for businesses that face seasonal fluctuations in cash flow.

The service is mainly used by small and medium-sized firms but can also be used by large businesses looking to plug arising cash flow problems.

Benefits of Invoice Financing

Why should your business consider invoice financing as a method of raising funds?

Quick access to cash

With invoice financing, your business has quick access to cash. The process of converting unpaid invoices into immediate funds has a short turnaround compared to the lengthy loan application and approval processes of banks. It enhances cash flow and allows businesses to focus on their growth and success.

No collateral required

Invoice financing doesn't require fixed asset backing for businesses to use the service. It is a viable option for businesses without substantial assets or those that prefer not to tie down their assets. This financing option also doesn't involve rigorous credit processes and focuses more on the quality of your debtors than your own business history, making it ideal for businesses with a less-than-stellar credit history.

Flexibility

Invoice financing is quite flexible, especially when you do it with us. You can choose how many invoices you want to finance at any time and how you want to use the funds. The facility is also scalable and can grow with your business needs. It does not tie you to long-term contracts; you only pay for the facility when you use it.