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.
Your Resources
SME Funding Guide - Understand your Options
Want to know more about the options available to you? Click here to see our SME Funding Guide, in association with our partners at KPMG Small Business Accounting. We've compiled all the information you need to research and choose the right funding for your business, including invoice finance.
Case Studies
Funding Xchange helps businesses all over the UK, to access the finance they need on the best terms available. Click here to read just some of the stories of the businesses we have helped
Call us on 020 3695 9206
More questions? Just pick up the phone and give us a call. We'd be happy to help you in your research for business funding.
How to Get Invoice Finance
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