Invoice financing, also known as invoice factoring, is a funding and collections package that offers a flexible way of improving cash flow.
It releases cash that is tied up in outstanding invoices and takes away the time consuming task of chasing and collecting payments.
The factoring company’s involvement is disclosed to your customers and they undertake credit management services and collect payment for your outstanding invoices on your behalf.
Fast Access to Cash
Normally within 24-48 hours on approved invoices.
Accessing cash that will grow with your business on a daily basis without ever having to ask is a sure way to reach your dreams and eliminate your cash flow worries
Affordable Cash Flow
Unlike a loan, invoice finance grows with you business. Unlike a bank overdraft this facility grows and expands with your business and at the pace you need.
No more bank managers to pass and approve what you need.
Invoice factoring naturally grows with you and the size of your business and at the pace you want.
You can choose to finance just one invoice (spot finance), a selection of invoices, or your customers as a whole.
Balance the amount of immediate cash for your invoices without ever having to ask for more.
A truly dynamic funding solution for your business.
Increase Your Bottom Line
Most businesses use invoice finance to fund growth and increase profits.
Having the cash you need to maintain your business and the stock required to expand, allows you to take endless advantages and opportunities for growth.
Same day payments for all your invoices.
Check to see what’s possible
There is no impact on your personal or business credit rating when checking eligibility
Invoice Financing – How it works
Invoice Financing, which encompasses Invoice Factoring and Invoice Discounting, is a form of short-term financing.
The Funder provides finance to the business who sells it’s accounts receivable or debtors ledger.
The released funds improve the business’ working capital and cash flow.
Invoice finance is a common solution to assist a company’s cash flow with the average rates in between 1.5% – 2.5% of the total invoice value (including VAT).
Spot Invoice Finance
Also known as Single Invoice Finance, Spot Factoring or Selective Invoice Discounting, this is a common type of invoice finance widely used in the UK.
It works in exactly the same way as invoice finance except that you select which invoices you would like financed.
Spot invoice finance could be a good option if; you have minimal bad debts, your customers mainly pay on time, customers have a minimum of 30-90 days in which to pay.
Spot invoice finance solutions are usually more widely available to established businesses rather than start-ups. However, because of our extensive knowledge of this market and the relationships we have built up with our funders, we can help with start ups and pre-pack or insolvent businesses.
All businesses need some kind of funding and making sure that you reduce your personal liability when arranging finance is paramount.
Here at Cashflow Creators we want you to have the funding you need but with as little personal guarantees needed to secure that.
Invoice Finance, or Factoring is a good place to start.
Over 44,000 businesses depend on some form of Invoice Financing to grow.
The past 10 years has revealed Invoice Finance as one of the fastest growing funding solutions that can keep pace with your business demands.
Invoice Finance does not require a fixed or floating charge, unlike some bank loans that require security from your personal assets.
With Invoice Financing the responsibility for chasing payment of invoices is with the Factor and your customers are aware that a third party is involved.
In this instance, your customers pay the Factor directly.
The factoring company will usually pay between 80 – 85% of the total face value of the invoices sold.
The remaining amount, less the factoring charge is normally paid once all the payments from the invoices sold to the factoring company are received from your customers.
With undisclosed services the responsibility for chasing payment of invoices remains with you. Your customers to make payment to you in the usual way and therefore are unaware that you are using invoice finance.
You needn’t worry that your customers may think your business is struggling. The growth of a business has many challenges and maintaining cash flow is high on the list.
Whether you choose disclosed or undisclosed Invoice Financing, the overriding factor is that it will expand your business’ capabilities to reach new heights faster than most other forms of borrowing.
Invoice Financing Key Facts
Key features of Invoice Finance, or Factoring and the benefits you can get working with the leading alternative business finance providers.
- Release up to 100% of invoice value within 24 hours
- Cash against the value of your invoices as they are raised
- Funding you can access grows in line with your sales
- Rolling contracts
- Funders or you can liaise with your customers for payment
- Options to make processing your invoices confidential
- Bad Debt Protection for total peace of mind
- Manage your account with online client services.
- Speed: Access to cash within same day or 24 hours to meet payments or make important purchases
- Control: Manage your credit control and sales ledger
- Personal: Relationship-based approach
- Convenience: Check your funding online 24/7
- Security: Protect against customer insolvency with Bad Debt Protection
- Confidentiality: Your choice for confidential funders. We will not disclose you are using an invoice finance facility.