Invoice
Finance
Invoice Finance
Invoice Finance allows you to unlock the cash tied in your invoices and release up to 90% of the invoice value within days. Invoice Finance is used by well over 40,000 businesses across the UK, allowing them to bridge the payment gap where otherwise they would be waiting 30 - 90 days for payment.
There are two primary forms of Invoice Finance:
Invoice Factoring
Typically for smaller businesses with less robust credit control capabilities.
-
Lender manages credit control
-
Lender is notified on all invoices and their involvement is disclosed to debtors
-
Invoices are uploaded individually on to the lenders portal
Invoice Discounting
Typically for more established businesses that have strong inhouse credit control.
-
Business manages credit control
-
Facility is confidential
-
Invoices are uploaded in bulk on to the lenders portal
There are also a number of hybrid options that fall halfway between Factoring & Invoice Discounting.
Market Features
With well over 100 invoice finance providers in the UK, it is critical to work with a funder that understands the nuances of your sector and the needs of your business.
Structuring an appropriate invoice finance deal will be a balance of the following:
1. Service - A lender with a low client manager to client ratio. The less clients per client manager, the more time they can dedicate to your business. Something that is critical with a “hands on” product like this.
2. Pricing - Ensuring you receive competitive pricing
3. Funding Limits - Making sure the facility is fit for purpose and the funder can actually lend at the required limits for each of your customers
1 - 36 months | Across UK |
£50k - £20m | Increase ROI |
Up to 100% Development Cost | Reduce Developer Equity |
Up to 80% LTGDV | Up to 100% of Purchase Price |