Invoice Finance
Invoice Finance releases cash currently tied up in outstanding customer invoices
How Does It Work?
You raise your invoice for goods or services as usual.
You raise the invoice, send it to the customer with a copy sent to the finance company.
The finance company will give you up to 85% of the invoice amount, usually within 24 hours
The remaining 15% is released as soon as the finance company is paid in full by your customer
What Does It Cost?
An Invoice finance company will provide finance in a similar manner to a bank – but, rather than have a fixed limit, your availability will be driven by the amount of security you have given to the “factor” by selling, or pledging you invoices.
They will charge interest in a similar way to a bank – say 4% over base.
However, in addition, as the invoice finance company will be collecting the proceeds of your invoices directly (there are various options), they will also charge a service charge being a small percentage of your invoice value.
The charge ranges and can be as low as 0.25% or as high as 3%. This depends on;
- The nature of the debt security;
- The level of advance made against the debt (typically 50% – 90%)
- The days the invoice is outstanding.
Is It Confidential?
Yes, the process can be confidential, which, means that your customers will be unaware of the financing arrangements. You usually continue to collect payments from your customer, but the money received goes into a bank account held by the finance company. Some finance companies also offer an optional credit control and debt collection service.
How Do I Find The Right Finance Company?
All finance companies are different. Cashflow Restructuring specialises in finding a funder that best suits your business. Why waste time trawling the internet in the hope of finding the right partner when Cashflow Restructuring, as independent brokers, have access to a whole market of finance companies which we can compare to ensure that you find the best for you.
What Our Clients Say
Please find below some of our most recent client testimonials...
Emily Revill, Calverton Finance
The team at Cash flow restructuring are trusted advisors, matching the most appropriate funding facility to each client they deal with. They are what I call the three P’s; professional, proactive and performs for their clients.
Annabel Todd, Aldermore
Ashley is a great person to work with, he knows the sector and the products inside out and always thinks ahead in terms of the required information I (as a funder) will require and without a doubt goes the extra mile in terms of ensuring what he does is right for his clients.
Paul Barker, 4Syte Funding Limited
Ashley and the Team offer a full service brokerage at Cashflow Restructuring, ensuring that key information is supplied to the lender from the outset. This not only sets them apart from many of their competitors, but allows for a quicker credit decision which ultimately leads to a more desirable outcome for their Client.
Your Cashflow is our Passion
Join us today for a no cost, no obligation consultation. We are always happy to help.