Invoice Finance


Like most businesses if you raise invoices when you sell goods or services on credit terms, you then have to wait to be paid. Typically that may be 30, 60 or even 90 days or more, after your invoice was issued to your customer.  This results in the stretching of a business’s cashflow and can cause significant problems as more often than not those terms are exceeded by the customer in the current financial climate.

Invoice finance allows a business to borrow money against their invoices. This enables them to get access to cash much earlier easing the gap between them raising the invoice to the receipt of funds from the customer.

Invoice finance has become the most common form of cashflow finance in the UK as the High Street banks look to move away from Overdraft funding. Recent statistics from the Asset Based Finance Association (ABFA) show that 43,429 businesses are using invoice finance of some kind with aggregate borrowing in excess of £16 billion. (Correct as of 30 September 2012 Source ABFA Wbsite).

Types of invoice finance available include:

  • Selective Invoice Finance (Spot Factoring) for a single or one-off invoices.
  • Disclosed Factoring
  • Confidential Factoring or Invoice Discounting
  • Export Factoring
  • Trade Services and Finance
  • International Factoring

All these products can be supplied with some form of credit insurance for an additional cost and are appropriate for most businesses selling on credit terms to their customers.

 Why not contact us today to see what we can do to help fund your business?