Invoice finance
Invoice financing can help if you find yourself waiting for customers to pay invoices.
Waiting for customers to pay invoices can be a big strain on your cash flow, especially when they’re not paid on time.
Invoice finance helps plug that gap by enabling you to get funding based on the invoices you’ve issued – paying anything from 75% to 95% of the invoice value.
You can get funding on a single invoice or on a whole sales ledger. There are options where you retain control of the invoices and payment or those where the invoice finance provider takes control. However, the latter means your customers will be aware finance has been taken out against the invoice.
In principle invoice finance is a type of working capital funding that can really help with cash flow management. In most cases the provider will charge an interest rate and fee for managing the credit. This is usually a percentage of the turnover.