Invoice Finance 2017-12-24T11:40:16+00:00

Invoice Finance

  • Provides funds for growth
  • Immediate cash advance
  • Turnover from £25,000

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Access All Leading Invoice Finance Companies Through One Enquiry

As experienced brokers, we are able to offer a wide range of solutions, from full invoice factoring to selective invoice discounting. We can help you free up capital and ease cash flow at market leading rates by unlocking the cash tied up in your unpaid sales invoices. Contact us for a free no obligation quote.

Invoice Finance is an area of business borrowing that has been under-utilised in recent years. It is a highly flexible form of borrowing that can be used to free up cash from your debtor book, relieving the pressure placed on your cash flow.

Many businesses are turning to invoice finance to take back control of their business and allow them the breathing space needed to move forward.

With lots of new SME lenders opening in the last few years, business owners can be confused by which product is right for easing their cash flow. Invoice Finance could be the ideal solution for you. Many of our clients use their improved cash flow to drive their business to the next level.

Invoice finance can help if your company is unable to take on more work due to tight cash flow. In many cases, a profitable company can be held back by delayed payment terms, which restricts their ability to grow. At ABC Finance Ltd we offer an unbiased advice service, offering low rates from across the market.

Our team of experts are perfectly placed to help you manage your cash flow. If you’re looking at options to raise capital for your business, fund expansion or refinance your existing facility, we can help.

We always recommend an annual review of your invoice finance facility. We test the market for you and our aim is to improve the facility you already have in place. This can save you money and increase the funds available to you.

There are many parts to an invoice finance facility and it is crucial that regular reviews are undertaken to check each area.

  • Recruitment
  • Haulage / Logistics
  • Export
  • Wholesale
  • Construction
  • Manufacturing
  • Security
  • Printing
  • Plant Hire
  • Engineering
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Invoice Factoring

Invoice Factoring is designed for companies who are either smaller, or do not have robust credit control systems in place. Factoring is designed to fund your entire sales ledger. When taking out a factoring facility, the lender will completely take over credit control.

As a result of the lenders role in credit control, the facility is by nature ‘disclosed’. That means your customer will be aware of the fact you’re using a factoring facility.

The full service approach, including credit control, is more secure for the lender, meaning factoring will usually offer the highest advance amount.

High advances combined with the inclusive credit control means your business will save considerable time and will have maximum cash flow. This allows business owners to focus solely on the business, with far less time concerned by credit control and managing cash flow.

The Benefits Of Invoice Factoring

  • Cash flow is improved by taking out factoring as funds are released immediately. As soon as the invoice is issued, funds can be released into your bank.
  • Due to the credit control services offered by lenders, you would no longer have to spend time chasing payments. This would all be done for you, leaving you free to focus on what you do best.
  • Lots of businesses accelerate business growth using invoice factoring. The certainty of immediate payment means cash flow becomes far less of a worry. Often the funds released early can be put to good use to help the business.
  • Negotiate improved terms with suppliers due to your new found ability to make prompt payments. Improved cash flow can be put to good use for this purpose amongst other things. The benefit in this area alone can often more than cover the cost of the facility.
  • By taking out a factoring facility, you have no need for a credit control team. In many cases, the cost of hiring a credit control team can far exceed the cost of invoice financing. As a result, factoring can offer you a fully managed credit control team for a fraction of the cost.

Is Invoice Factoring Suitable For My Business?

Invoice factoring is suitable for any B2B businesses that would benefit from improved cash flow. If delayed payments from creditors hold back your ability to efficiently run or grow your business, factoring could help.

By receiving payment almost as soon as the invoice is raised, everything from payroll to paying suppliers and managing growth becomes simple. The revolving funding line is designed to grow with your business and is naturally in tune with your busy periods.

When compared to other business funding options such as overdrafts, business loans and peer to peer lending, invoice finance is often the most flexible option.

By transferring credit control to your lender, the benefit can easily outweigh the cost. The time saved worrying about chasing payments can now be spent on running your business. If you want to spend more time running your business and less time worrying about cash flow, factoring would benefit you.

Invoice Discounting

Invoice discounting tends to be most suited to larger firms and is designed to fund their entire sales ledger. Facilities are often set up on a confidential basis, meaning customers are unaware that it is being used.

Invoice discounting facilities allow the borrower to handle their own credit control, meaning you continue to deal with your own creditors. This can be important when trying to maintain a strong relationship, or when carefully managing a slight payment issue.

Lenders will be keen to understand the creditworthiness of the customers, as they will be less involved in the payment process. Due to the lack of control from the bank’s side, they will want to ensure the risk of running into issues later is as small as possible.

When looking to take out invoice financing, the lender will also look into your credit control systems. Without robust credit control, the risk of late or non-payment increases. For this reason, smaller, or new companies may be encouraged to proceed down the invoice factoring route.

The Benefits Of Invoice Discounting

  • This type of borrowing is often far more cost effective than other funding options for cash flow management.
  • Your cash flow will improve as you will have almost instant access to the funds due, without having to wait for payment from the customer.
  • Invoice discounting can be completely confidential, meaning your customers will be unaware you are using it.
  • You manage your own sales ledger, maintaining credit control processes and keeping control in-house.
  • The products tend to be very flexible. As your business grows, the cash available in your facility will grow alongside it.
  • Business growth can often be accelerated due to improved cash flow
  • Improved cash flow will result in you being able to pay your creditors sooner, often meaning you can negotiate price reductions as a result.

Is Invoice Finance Right For My Business?

If your business invoices clients on credit terms and has established credit control procedures in place, then invoice discounting could be for you. If cash flow holds back your otherwise profitable business then you could benefit by investigating invoice finance.

Companies with a turnover in excess of £250,000 tend to be most suited to confidential invoice discounting. Smaller companies may not have robust credit control systems in place and may benefit more from invoice factoring.

By receiving payment almost immediately once your invoice is raised, everything from payroll to paying suppliers becomes simple. The revolving funding line is designed to grow with your business and is naturally in tune with your busy periods.

When compared to other business funding options such as overdrafts, business loans and peer to peer lending, invoice finance is often the most flexible option.

Our lenders offer a 100% confidential service, meaning your customers will not be aware of the facility.

Bad Debt Protection And Other Add-Ons

Our invoice finance providers are able to offer full bad debt protection. Bad debt protection is designed to protect you from losses in the event of your customer becoming insolvent and failing to make payment.

There are several add-ons available to help protect your business, each of which has a cost. Our experts talk you through all of your options and the costs associated with each. We can help make the process simple and easy to understand.

How Does Invoice Finance Work?

  • You send your invoice as normal to your customer for your goods or services.
  • You then send a copy to your lender or copy them in by email.
  • At this point, your lender would make payment for the agreed percentage of the invoice, up to 95% of the amount due.
  • The invoice is chased as normal (either by yourself or your lender) and upon payment, the remaining balance is released to you less the agreed fees.

Who Should Take Out Invoice Finance?

Invoice finance is available to any businesses that are paid on terms of 30 days or more. The delay between an invoice being issued and payment being received can disrupt cash flow. This is especially pronounced when there is a significant upfront cost for supply of that service. There are several industries that tend to benefit greatly from taking out an invoice finance facility, the most common are:-

  • Printing
  • Manufacturing
  • Engineering
  • Recruitment
  • Wholesale
  • Transport
  • Logistics
  • Construction
  • Freight
  • Security firms

Of course, any company supplying on terms of 30 days or more can benefit, regardless of industry.

Call Us Today Or Enquire Online

At ABC Finance Ltd, we are invoice finance experts and have relationships with all the top lenders. By working with us, you can access the whole market through one simple, quick enquiry.

We manage the whole process and you can leave the whole thing to us while we negotiate the most suitable terms for you.

Enquire online now or call us on 01922 620008 to get a free personalised Invoice finance quote.

Fast funding
money in your bank within 24 hours

High level of advance
up to 95% of invoice value upfront

Selective invoice finance
all invoices or even just one

Factoring or discounting
we help you to choose

invoice discounting services

Case Study: Invoice Factoring

With a client’s business expanding and cash flow getting tight due to the higher amount of credit supplied to customers, a need to pay an urgent tax bill could have been a disaster. However, a call to one of our advisers for his invoice discounting issue, we quickly provided an influx of capital by arranging money owed on invoices weeks before it was due and within days of the enquiry. We are one of the best invoice factoring companies in the UK.