Invoice finance is a product in which a business can release the cash held up in its unpaid invoices. If you are a business that sells B2B on credit terms, it is likely that there is a type of facility within the IF product suite that could assist with your cashflow.
For example, if a business sells on 30 day terms, there may be a shortfall in cashflow until the payment is made – this can cause issues in keeping on top of paying suppliers, wages and other overheads. With an invoice finance facility, a prepayment will be made by the funder (usually up to 80-90%) as soon as the invoice is raised – once the debtor pays the full balance, the remaining % is advanced to the business less a small fee.
This works particularly well (although not exclusively) for businesses in the following sectors:
- Recruitment
- Manufacturing
- Haulage and logistics
- Printing
If you are interested in discussing your options, please email us on [email protected] or call the office on 0345 5050 888.
