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’s 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.