Invoice Finance Quote Search
Our independent, confidential service will guide you through the process of finding the invoice finance company that best meets your requirements. We will not charge you to use our service.
GET A FREE QUOTE or call Sean on: 03330 113622 for a confidential discussion.
How Does Invoice Finance Work?
Invoice Finance (IF) releases working capital and improves your cash flow by:
- Releasing money from the cash tied up in your outstanding sales invoices.
- Allowing you to select invoices to get funded, or to fund against all your invoices.
- Funding all your invoices gives you an immediate cash injection as all your whole sales ledger is funded.
It can also:
- Generate increased levels of finance as your turnover, and hence sales ledger, grows.
- Provide optional help with credit control activity (or you can retain this in-house).
- Provide optional protectection against bad debts.
Unpaid sales invoices are often the largest and most valuable asset of a business. They are also the asset that is overlooked when it comes to raising finance. This form or funding seeks to address this by providing revolving finance against the outstanding unpaid sales invoices of the business. Finance invoice batches, individual invoices or all your invoices.
Immediately you raise new invoices, the funder will provide a prepayment (also known as an initial payment or early payment) against the gross value of the sales invoices. The financier will provide further prepayments as subsequent invoices are raised. In this way the level of funding grows as your business grows and it can dramatically improve the cash flow of the business.
How Much Cash Could You Raise?
Funding percentages can be up to 100% but as an example, if a business has an outstanding sales ledger of £100,000 and, for example, the funder agrees a prepayment percentage of 85%, the business could receive up to £85,000 funding immediately. The balance of the invoice values is still passed to the business once the invoices are paid, less the funder's charges.
To find out how much cash you could raise using IF use our free online cash calculator.
How Much Does Invoice Finance Cost?
The costs depend upon the type of facility you want, whether you want any credit control options, and the nature of your business. You can choose to get funding against individual invoices without any contract, this can cost just a few percentage points of the invoice value. If you wanted to finance all your invoices, the total cost starts from c. £2,100 + VAT per annum. All inclusive fees are available. However, you can get funding against one or more invoices that you select - in these cases the cost can be much less.
We can provide free, independent advice, and a free quotation search service.
For a quotation based on your individual circumstances: Complete an: ONLINE QUOTATION SEARCH REQUEST or call us and speak to an expert in confidence on: 03330 113622.
Types of Facility
There are two principle types of IF, which can both be completely Confidential so that no one knows you are using the service:
- Invoice discounting. - you receive funding and retain your own credit control function.
- Factoring - you receive funding and credit control support.
You can also receive funding against just selected invoices or via an invoice auction where investors bid for the right to fund against your invoices.
Further Information About Factoring And Invoice Discounting
- How To Finance Business Growth - a shareable infographic which shows the link between using receivables finance and growing your business.
- How Does Invoice Finance Work? - a 5 step Infographic which explains the way these products work.
- Short Notice Periods And Open Ended Contracts Without Notice - an article explaining how short notice periods are now available with both wholeturnover and selective facilities.
- List of IF Companies - a list of the various factoring and invoice discounting providers within the UK market.
- Market Research - our archive of research and price comparisons regarding invoice finance.