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HOW DOES INVOICE FINANCE WORK?
An invoice finance facility gives your SME business the immediate working capital it needs by simply selling raised, unpaid invoices in return for a lower cash value. These facilities can be tailored to your needs, with the option to retain or outsource full control of your sales ledger and relationships with your customers.
01
Invoice your clients as usual
Sell your products or services to business customers as usual and issue invoices with a 30 to 90-day payment term.
02
Choose invoices to sell
Once your facility is set up, you can choose one invoice, multiple invoices or your full sales ledger to release cash against. The invoice financier will simply 'buy' the debt that is owed by your customer.
03
Receive up to 95% upfront
Receive an invoice advance up to 95% of the value of your sales invoices in 48 hours. Example: If you have a £10,000 invoice, you could get up to £9,500 upfront to help improve your businesses cash flow.
04
Customer pays the invoice
When the invoice is due, the client pays the invoice to the invoice finance providers account. Depending on the facility you have chosen, the provider can manage the sales ledger, credit control and chasing customer payments on your behalf, or it can remain with you.
05
Receive final balance
You will then receive the remaining balance, minus any fees and charges agreed with the invoice finance provider.
