In order for your business to run smoothly, you need to have a good cashflow. You need money coming in, to pay for the next lot of expenses. The problem is a lot of businesses have, especially small businesses, is that their money can often get tied up in unpaid invoices. Most invoices will have a payment deadline, some demand immediate payment, others may require payment within 30 days, some might even have 90-day payments terms. A business will not be able to succeed long-term if it is dependent on invoices being paid before it can pay its expenditures. Equally, a business (if it does not have its own credit control department) can find themselves spending a lot of valuable time, chasing payments for invoices that are overdue.
An invoice financing service can help to bridge the gap between your expenditures needing to be paid and you receiving money for the invoices that are owed to you. Moreover, they can help to support you with credit control and receivables management, saving your business time and stress.
Our invoice factoring services is the ideal small business financing solution, providing support and financial help to your business in a number of ways:
Invoice discounting and invoice factoring, one of the more innovative funding solutions for small businesses, is a way to generate working capital and ongoing funds for your business, secured against your sales ledger.
Invoice discounting and invoice factoring are very similar services, both allow your business to secure funds against your businesses existing sales ledger. A factoring company will pay your business against a certain value of the sales ledger (for example 75%). This means, if your company completed £1000 of work and invoiced the customer, they wouldn’t have to wait for that invoice to be paid for a month, instead they can have up to 75% of the funds released to them immediately by the factoring company. Some factoring companies offer a simple service whereby they pay against the value of invoices, other factoring companies also include collections services, which include credit control. This falls under the credit lines category in that the customer can draw down on their available funds whenever they need funding.
The benefits of invoice factoring include a percentage of your invoices going into your available funds as soon as you process the invoice through the factoring company. As well as a dedicated credit control service, which typically includes legal actions required against outstanding invoices. In addition, we don’t just take into account your sales ledger, but we can also help you generate additional funds through your assets.
The financial services we recommend to you are based on your specific business situation and future needs. We take the time to understand your business first, to make sure invoice factoring is the right fit for you and will generate the funding you require. As well as providing you with the most suitable services at the most affordable prices, we also give you free advice and support throughout. We make sure you understand exactly what services you are getting, how this will help your business and the costs involved. We ensure all our communications are open and transparent, we keep you up-to-date on your account and we have a team available to speak to you whenever you need us.
If you have any questions about the invoice factoring process, or would like more information about how this alternative financing service can help your business, contact us today.
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