If your business regularly invoices other businesses, you might want to consider Invoice Finance, which is one of the best ways to ease any cashflow problems and get paid faster for the work you have completed.
The idea is quite simple, rather than waiting for your Invoices to be paid by customers, a lender can advance you most of the amount immediately, meaning you get paid faster for your completed work, so you can focus on running your business.
A lender can take control of collecting payments from your customers, your customers will be aware that you’re using a Factoring provider, because they can credit check potential customers for you. This might be best for small or start-up companies
A lender will be closely involved, when they provide ‘credit control’ services to ensure your customers pay on time, which might be precisely what you need, in order to allow you to focus on your business, as opposed to chasing late paying customers.
Invoice Discounting is a simple form of Invoice Finance, and is usually more appropriate for more established businesses with a higher turnover. Invoice Discounting differs from factoring, because you would still have to do your own credit control to ensure customers pay on time.
Selective Invoice Finance is also known as ‘Spot Factoring’ or 'Single Invoice Finance', and is a flexible type of Invoice Financing, which allows you to choose Invoices to raise Finance against, or particular customers whose Invoices you would like to Finance. Generally, It is a more appropriate solution for businesses that know how much money they need, but can be more difficult to secure than Discounting or Factoring.
If you would like to discuss Invoice Finance with a Lender, please click on the button below.