Each lender will use their own assessments and criteria to make a decision on your invoice finance application. We will cover the basic criteria points that are associated with taking out a facility.
We will fund businesses with an annual turnover of £30,000 or more per annum for invoice factoring products. Invoice discounting facilities will usually require a turnover of at least £250,000.
We will consider funding companies in any industry, as long as they are invoicing their clients. Some industries will be considered higher risk and may see some difference in the terms offered due to this.
Your Customer Base
The chosen lender will want to know more about the customers that you are issuing your invoices to. All customers will be considered, but where your customer base is made up of strong businesses, who make their payments on time, your application will be considered stronger.
A spread of customers will always be preferred to one or two large customers. Where only a couple of customers make up a large proportion of issued invoices, some lenders may restrict lending due to concentration limits.
Payment History & Bad Debts
Where your customers are failing to pay on time and your aged debtor analysis shows a record of bad debts, credit control will be key.
If your record of managing payments is poor, the lender may be more inclined to lend if they will be taking over this function. In addition to the raw figures, most lenders will consider whether the trend is positive or negative and what systems are in place for managing outstanding invoices.
We offer invoice finance to companies throughout the UK, with no geographical bias. We can even fund transactions for companies who are issuing invoices to non-UK businesses.
Although most lenders prefer to lend to clients with a strong credit history, we have a number of lenders who are happy to consider a range of circumstances.