Invoice finance allows you to quickly release cash into your business by converting the value of unpaid invoices into working capital.
Don’t let a lack of available funding hold your business back. Invoice finance can give you the flexibility you need to grab new opportunities as they arise, helping you to achieve your goals.
Whether you want a fully outsourced factoring solution, or confidential invoice discounting we can help.
Invoice financing provides flexibility, but that comes at a cost. Invoice financing can be more expensive than other forms of borrowing.
It is sensible for any business that needs cash in the short term to consider as many finance options as possible to ensure it chooses the one that fits best.
If you anticipate you are likely to have a very short-term cash shortfall, you may consider applying for an approved business bank overdraft. This would provide the required flexibility, provide certain access to cash, and may be a cheaper alternative.
If your cash position is weak because you have purchased a large piece of equipment, then asset finance may well have been a better option.
If you have a large VAT or tax bill then one of our business finance solutions may help with this.
However if you are growing rapidly and have the margin to cover the costs, invoice finance can ensure positive cash-flow at all times to accelerate that growth.
If your business is ready, invoice factoring can be one of the safest ways to fund growth without risking an existing positive cash flow situation.
Generally, cash is advanced within 24 hours of an invoice being sent. This fast access enables you to operate the business cost-effectively, and when compared with the usual 30 or 60 day time-lag between invoices being issued and receipt of payment, you can see how greater flexibility is offered in terms of your own payments.
Early payment discounts may become available from your suppliers, which in some cases cover your lender’s fees
Long-term liabilities are covered. You won’t need to provide any personal guarantees or collateral.
Convert up to 90% of your full invoice value into working capital, within 24 hours of submitting your invoice.
The amount of funding available is based on your invoices, so as your business grows, so does the amount of capital that you can access.
In the case of invoice discounting, your clients do not need to know that you are using invoice funding.
Remain in control of your own credit control function, unless you decide to opt for invoice factoring.
You are borrowing against your invoices with no need for assets as security.
If you wish you can obtain additional bad debt protection.
Invoice discounting is arranged confidentially, so your customers won’t know that you are borrowing against their invoices.
Your business is still responsible for credit control and debt collection.
Invoice factoring involves the funder dealing directly with your customers to collect payment, so they will know that you have an invoice finance arrangement in place.
You may not want your customers to know you are using this type of facility, and confidentiality can be an important reason why some businesses opt for invoice discounting.
However as the factoring company is in charge of collecting payments, they will have robust, efficient procedures in place. which can save you time and money.
Spot invoice funding is a term used to describe a facility where a single invoice is factored. Because single invoice finance is usually just one transaction, the costs can be higher than other forms of invoice finance.
It allows you to pick and choose which invoices to sell. This may suit you if, for example, you have one customer that demands very different credit terms from your standard terms.
contact focus with your requirements
discuss your needs with the invoice finance provider
review and sign the offer
start enjoying improved cashflow
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