Free the Cash tied up in your outstanding invoices.
How does invoice finance work?
The concept is straightforward. Instead of having to wait weeks for your invoices to be paid by your customers, the invoice finance company (lender) will advance you most of the VAT inclusive value immediately, should you request it. That means you have access to the money from completed work immediately, so you can focus on running your business.
Features of Invoice Discounting
• Invoice discounting is the most straightforward form of invoice finance and generally available to more established businesses with higher turnover.
• Invoice discounting is normally confidential (often called Confidential Invoice Discounting), and you’ll continue to deal with customers yourself, they won’t know you’re using a finance provider.
• You will continue to do your own credit control to ensure customers pay on time.
Benefits of Invoice Discounting
- Bridges the cash flow gap between paying suppliers and getting paid
- You keep your credit control function in-house to build on customer relationships
- Confidentiality means the invoice discounting company’s involvement is not visible to your customers
- The funding available grows in line with the business
- Credit protection can be incorporated to safeguard cash flow against the threat of debtor insolvency and protracted default
- Access to cash can help you secure early settlement discounts with suppliers
- Can be used to leverage additional funding