Confidential Invoice Finance For Your Business

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Invoice Finance

How to Grow Your Business With Invoice Finance

Invoice finance is the key to your cash flow issues. It’s a type of finance where a lender buys your outstanding invoices from you so that you don’t have to wait weeks for the customer to pay.

This is useful if you’re looking to grow your business but are reliant on cash flow to do this. Buying stock, investing in assets, and hiring employees isn’t cheap. It takes consistent, measurable income; something that is hard to achieve through invoice payments. People can be late payers, but you shouldn’t let this prohibit your business.

By leveraging invoice financing, you’ll boost your bank balance and be able to scale your business quicker than you originally expected.

What is Invoice Financing?

Invoice financing is a type of lending for businesses. You take an outstanding invoice or invoices to a lender, and they’ll offer up to 95% of their value. In most cases, businesses take around 70-80% of the value upfront. The lender will pay you this in a matter of minutes. When your invoice is paid, it will go into a bank account controlled by the lender. They’ll then take their fee and transfer you the outstanding amount. Your loan is held against the invoice, so no assets or upfront payments are needed for security. This gives you a quick cash injection without putting your business at risk.

Invoice Finance Example

A manufacturing business has a large job in the pipeline. To complete this work, the company needs to pay for extra materials and take on another member of staff. The problem is that this business will only get paid once the work is finished. They don’t have the cash in the bank to pay for the materials or higher an extra member of staff. They either risk getting into debt to pay these costs upfront, or they lose the job.

A separate client owes the business £15,250 for a completed job, but the payment terms on the invoice mean it doesn’t need to be paid for another 30 days. By the time this invoice has been paid, it will be too late to pay for supplies for the upcoming work.

The manufacturing business speaks with ourselves at Shadowfax Funding Solutions. We find a lender based on the clients the business has, the systems and processes that are in place. The lender sets up an invoice finance facility that gives the manufacturing business 85% of the outstanding £15,250 invoice.

Invoice value = £15,250 | Advance amount (85%) = £12,963 | Fees (3%) = £458

The company provides proof of the £15,250 invoice and receives £12,963 of it from the lender within a couple of minutes. Then, when the customer pays the invoice 30 days later, the full £15,250 goes into a bank account controlled by the lender. The manufacturing business gets the remaining value of the invoice (£2287) minus fees (£458), so receives £1829. All invoice finance operates under this principle, but there’s a variety of different products available.

The product you are offered depends on the type of business you operate and the systems and processes that exist in the business. Our established partnerships allow us to secure the right product for you. 

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Invoice Finance for Small Businesses

Small businesses-especially start-ups- become crippled by poor cash flow.

In the worst-case scenario, poor cash flow will cause a business to shut down. Invoice financing for small businesses alleviates the stress of chasing late payments or waiting months for the money to come through. Invoice financing for small businesses gives companies the one thing they desperately need, a measurable and consistent income.

Your invoices don’t need to be worth thousands for you to benefit from this. Even an invoice worth a few hundred pounds can be financed through the right lender. And, because of the low barrier of entry for business invoice financing, you don’t need to have been trading for years or have a list of assets to qualify for this lending.

Invoice Finance Companies

There are a variety of invoice financing companies available. Some are banks and some are specialist lenders. Each one has their own products, specifications, and offerings.

Some invoice financing companies will offer a lower value for the invoice. Other companies will want a larger fee or only work on higher-value invoices. To benefit from invoice financing, you need to find a lender who is a good match for your business.

Just be aware that going directly to a lender will only open the doors to their products. You won’t be able to see the best deals on the market, you’ll only see the offers that they have available. This is where an invoice finance broker like us helps to save you money.

Work with Shadowfax Funding Solutions to Grow Your Business Through Invoice Financing UK

Finding the right invoice financing companies is vital. It will save you time and give you access to larger lending amounts. A whole of market finance broker like us will do this legwork for you. This means that you’re only offered the best deals on the market without weeks of doing your own research.

This is what our business specialises in. We work with you to find an invoice finance deal that is right for your business. One that will give you the quick cash injection you need to scale and grow.

Our consultations are free, and we’ll tell you what options are available within 48 hours. There is no obligation or hard sell. However, when you proceed with the offer, we’ll help you with the paperwork and walk you through every step of the process.

If you’re new to invoice financing, then you might have some questions. If there is anything that is still unclear, then click here and contact us today. We’re always on hand to help you with any questions before you make your final decision.

Don’t wait till tomorrow to fix your cash flow issues. Contact us today and end the headache of unpaid invoices

End the headache of unpaid invoices

Don’t wait until tomorrow to fix your cash flow issues. Contact us today.

If you’re new to invoice financing, then you might have some questions. If there is anything that is still unclear, then contact us today. We’re always on hand to help you with any questions before you make your final decision.

Contact Us Today