Understanding Invoice Finance

Invoice Finance is a way of releasing the cash from your invoices as you raise them, not when they become due.

How Invoice Finance works

Once you raise an invoice you send one to your customer and one to your lender.  Your lender will then advance you up to 90% of the value of your invoice, usually the very next working day.  Once your customer pays the invoice, the lender will then pay you the balance of the invoice, less a small service charge – this in Invoice finance.

Benefits of Invoice Finance

  • Invoice Finance will let you get on with your business while your lender chases payments.
  • Flexible enough to allow you to borrow as little, or as much, as you need.
  • Doesn’t need further assets to secure the finance.
  • Gives you instant access to the money you have earned, no waiting around for the invoice to be settled.

Is it right for me?

Financing your Invoices isn’t right for everyone.  There are certain situations where it is either too costly or just unrealistic to work.  The two main criteria for making sure it is right for you are:

  • Your expected turnover should be more than £50,000 p.a.
  • You should raise invoices for services completed, or products supplied.

And that’s it!  In most cases if you satisfy these conditions then you will be able to factor your invoices. Discover how much you could money you could release from your invoices by getting an instant quote – just complete the form opposite.

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