Cash flow Solutions

Cash flow Solutions

Slow paying customers are one of the most common causes for cash flow issues. However, if you regularly invoice businesses, you may be eligible for invoice finance which can significantly improve your cash flow almost immediately.

What is invoice finance?

Invoice finance is a way to release funds that are tied up in your sales ledger. You can sell your invoices to a third party and they will pay you a percentage of what the invoice is worth, minus a service fee. This means you don’t have to wait for your invoice to be paid by your customer under your payment terms. There are two main types of invoice finance:

Benefits of invoice finance

  • An injection of cash could avoid creditor action
  • Invoice finance is more flexible than business loans
  • Lenders decisions are made faster
  • Funds are usually received within 48-72 hours
  • Access to funds locked up in your sales ledger
  • Could assist you in becoming solvent
  • Helps reduce the risk of late payments
  • Factoring – the lender takes on your credit control responsibilities allowing you to focus on growing your business

Invoice Factoring

With invoice factoring, the process of making money and getting paid becomes easier than ever. After raising an invoice with your customer, all you have to do is simply send a copy of the invoice to your lender, who will conveniently pay you up to 90% of the invoice amount within 48-72 hours.

When you factor invoices, you don’t have to do much more. The lender will collect the payment from your customer at the arranged date and send over the remaining value that you did not initially receive, minus the pre-arranged fees.

Invoice Discounting

Invoice discounting works in the same way as invoice factoring, however, you maintain responsibility for your credit control. This is sometimes the preferred solution for businesses as your customer will not be aware you are using an invoice finance facility.

If your company is struggling financially, please get in touch with us on 0800 009 6106 to find out what your options are. It may be as simply as helping you to obtain the injection of cash you need to get you back on your feet.

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0800 009 6106