Invoice Finance is a finance solution which enables businesses, who sell products and services to other businesses, to unlock the value of their invoices.
With many companies extending their payment terms to 30, 60, 90 or, in some cases, 120 days, businesses are waiting longer to get paid by their customers. This extended wait results in businesses struggling to meet their own commitments to suppliers and staff. This is where Invoice Finance can help. With Invoice Finance, a business can release up to 90% of an invoice’s value as soon as it has been sent to a customer, relieving pressure on the business and bridging the cash flow gap.
Invoice Finance is not just for assisting with cash flow, however, it can also help businesses to grow. This is because Invoice Finance grows with your business and can be used to purchase equipment, stock, machinery or a new employee. As sales grow, so do the value of invoices and the amount of funding which can be released.
How invoice finance works
- Raise an invoice to your client/customer in the usual way, detailing how much is due and the date payment is due.
- Send a copy of the invoice to the lender who will then pay the agreed value into your account within 24 hours.
- When the invoice is paid, the lender receives payment from your client/customer. The lender will deduct the prearranged fees and forward the remaining balance to you.
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