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Commercial Finance

Invoice Finance

Why you need Invoice Finance

Improving cash flow is important to your business. Some small business owners also feel uncomfortable chasing customers for payment for fear of not getting any future business from them.

Let's look at some of the benefits;

- Releases cash into your business
- Provides up to 90% cash advances on the value of invoices
- Makes cash available within 24 hours of raising your invoice
- Improves cashflow
- Can enable you to buy more competitively from your suppliers as you can negotiate early payment discounts
- Offers flexible limits - the more you invoice the more funding is made available.

Invoice Finance explained

Invoice Finance offers an alternative to release funds to flow into your business. It eliminates having to wait for your customers to pay you. It releases some of the value of your invoices as cash and therefore you can use other credit facilities you have to engage elsewhere. The most commonly used invoice finance solutions are invoice discounting and invoice factoring.

What is Invoice Factoring?

If you do not have the resources and information systems in place to efficiently collect payment for your business invoices you could consider invoice factoring. Invoice factoring is where the debt collection is taken over by a factoring services company.

The factoring services company will provide you with credit control and collection services for all your invoices. You send all your business invoices to the factor who will pay you up to 90% of the invoice amount within an agreed time frame (can be as little as 24 hours). When your customer pays the invoice the factor will deduct their charges before making a final balancing payment to you. Bad debt provision is sometimes available but may incur additional charges.

What is Invoice Discounting?

Invoice discounting is similar to invoice factoring except that you remain responsible for collecting payments from your clients. The invoice factoring service provider will charge a % of the invoice value as their fee.

How to choose between invoice factoring and invoice discounting

With invoice discounting you maintain the relationship and contact with your customers. The main advantage is that this arrangement is confidential between you and the discounting service provider, but you still benefit from guaranteed payment of your invoices.

Let us have a look around for you, this does not cost a penny and maybe we could save you thousands.

To enquire now please complete the form on our contact page

Tel: 0191 4990990
We Can Mortgages and Loans.
Clavering Road
Blaydon, Gateshead
Tyne & Wear
NE21 5HH

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