What is Invoice Finance?

We know that waiting for the payment of invoices can have a huge burden on your business. Invoice Financing can solve the problem by getting early payment on invoices. Funding providers may offer payment of up to 98% of your unpaid invoices. You can select individual invoices that you want to finance or get financing for your full sales ledger. You can receive money within a day, meaning you don’t have to wait weeks or even months for outstanding payments, helping any immediate cashflow problems and giving you the opportunity to focus on what’s important – growing business.

Amount

85% - 98% of invoices

Funding amount of the unpaid invoices that are due for collection

Period

90 / 120 days*

*Depending on length of invoice

Cost

2% - 5% of invoice value

Annualised costs of financing will vary and can be 2-25% of financing volume


The information above shows the terms typically associated with Invoice Finance. Your terms will depend on your own situation

Invoice Finance at a Glance

3 Months Trading

To apply for invoice finance, you must be trading for more than three months. Typically, your revenue must be equal to, or more than £100,000 per year, although there are new providers that only require £40,000 per year. It’s particularly suited for businesses that are fast growing because the access to finance grows with turnover.

Customer Track Record

You don’t need to have a perfect credit record, but your customers should have a good track-record of paying suppliers.

Sales Ledger

You’ll need to share the details on the value of outstanding invoices or upload your sales ledger.

Personal Guarantees

A personal guarantee – an agreement that means a director takes on a certain level of personal responsibility for the debt through their own finances/assets - is sometimes required.

How to Get Invoice Finance

Ready to move forward on your business funding?
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Or call us on 020 3695 9206 with your questions.