How Is Invoice Financing Useful?
Invoice financing allows businesses to borrow based on invoices that they are owed by their customers. This provides SMEs with a great short-term financing option with lower interest rates than other short-term financing methods.
Invoice Financing releases cash currently tied up in outstanding customer invoices – ideal for funding expansion plans or improving your cashflow.
It is structured as a secured line of credit, therefore the lender will feel safer. Invoices act as collateral against money borrowed.
The lender limits the risk by lending a percentage of the total invoice amount and the balance acts as a fee.
If a client is unable or unwilling, the lender basically become the creditor rather than the company.
There are two main types: Factoring and Invoice Discounting.
With factoring we provide both funding and credit control. With invoice discounting only the funding is provided.
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Invoice Financing Benefits
– Access to the funds held in your invoices within 24 hours so you don’t have to wait to be paid.
– We aim to give you the best value we can based on your specific requirements.
– Outsource your credit control and sales ledger management to our expert teams or handle them yourself.
– Our country-wide presence and relationship managers ensure we can give a more personal service.
– Our confidential service means we won’t disclose you are using an invoice finance facility.
– Protect against customer insolvency with Bad Debit Protection
Did You Know?
- A company can have a few trade lines and make your business more flexible and efficient.
- One line, multiple products for both import and export use.
- Now the Credit lines of up to 10 times the amount of security provided.
- It allows you to use Letter of Credit, Trust Receipt, Shipping Guarantee, Bills Purchase and Invoice Financing etc to meet your trading and business requirements needs.
- Up to 120days and Interest chargeable only when you use the line extended to your company.
- Absolutely hassle-free application process.