- 19 Apr
What Are The Minimum Turnover Size Criteria For Invoice Finance?
Prospective clients often as us "What are the minimum turnover size criteria for invoice finance (factoring & invoice discounting)?". Unfortunately, the true answer seems to be widely misunderstood by small companies and small businesses, there really isn't a minimum turnover. We have recently spoken to a small business who were turning over £60,000 pa and they thought that they were too small to use invoice finance - this is incorrect.
There really isn't a minimum size or turnover criterion for invoice finance. especially now with access to transactional finance such as via auction sites and spot factoring. Small batches of invoices can be financed without even the need to put all your turnover through the financier.
Even if your business does want to finance all your turnover we will be able to find even small businesses an invoice finance company that will be able to help. You will however find that some invoice finance companies will set minimum turnover criteria for new clients but these are in no way uniform across all invoice finance companies.