Invoice finance

How Invoice Finance Works

• You issue an invoice to your customer
• You send a copy of the invoice to the finance provider
• The provider advances you up to 85% of the invoice value
• Your customer pays the invoice according to your agreed terms
• Once the customer pays, you receive the remaining balance, minus the provider's fees

Invoice Finance features

• Access up to 85% of invoice value upfront
• Funding that grows with your sales
• Typically faster to set up than traditional loans
• Can be confidential or disclosed to your customers
• Helps manage seasonal fluctuations in cash flow

Invoice Factoring

Invoice Factoring involves selling your invoices directly to the finance provider. Under this arrangement, the provider takes on the responsibility of managing collections from your customers. This type of finance is particularly suitable for businesses that don't have a dedicated collections team, as it frees up your time and resources. It's important to note that with Invoice Factoring, your customers will be aware of the financing arrangement, as they'll be dealing directly with the finance provider for payments.

Invoice Discounting

With Invoice Discounting, you retain control of your sales ledger and continue to manage your own collections process. This makes it a more confidential option, as your customers are usually unaware of the financing arrangement. Invoice Discounting is typically more suitable for larger businesses with established collections processes and a desire to maintain direct relationships with their customers. This option often provides higher advance rates than factoring, allowing you to access a larger portion of your invoice value upfront.