Any successful business can hit cash flow problems. If you need an immediate injection of cash, and you regularly invoice businesses which take a while to pay, then invoice financing can help you release funds tied up in those unpaid invoices.

Invoice financing can be incredibly flexible and there are two main options.

Invoice discounting

Simply releases the cash from your unpaid invoices. This can be ideal for lower volumes of invoices or where you have plenty of resource to manage your sales ledger. For added comfort, most funders will offer protection against bad debts.

Factoring

In addition to invoice discounting, this provides more support with a full sales ledger administration service including credit control and chasing your customers for payment. If necessary, this can be done confidentially, so your customers will not be aware you have outsourced this. It is designed to grow with your turnover and could be the best solution if you have a high volume of invoices and don’t have enough time to manage them.

As we come out of the pandemic, this type of finance will be increasingly useful. For example, you could use it to support your customers and build long-term loyalty, by giving them longer to pay, without impacting your cashflow.

We have personal relationships at a senior level with every major funder in the UK so are very well placed to find the right solution and funding partner for your unique circumstances.

• Cultural fit. It’s vital that the funding partner is a good fit for your business. For factoring in particular, they are an extension of your organisation and have contact with your customers.
• Practicalities: We also ensure the partner can deliver the required speed of set up, best value fees as well as bad debt cover if you need it.

Many businesses throughout Scotland have recently been recategorised by the bank as a result of taking on debt during the pandemic and we’re supporting lots of these with funding.

You might find invoice finance specific to Trades and Stocks beneficial and here’s some information on those:

• Trade Finance 
• Stock Finance

If your current funding or existing invoice facility is at risk of being withdrawn, contact us to discuss your funding options to help boost your business recovery.