What is Invoice Funding?
Invoice funding is a general term used for asset based lending products that allow companies to finance slow-paying accounts receivable. This type of funding helps businesses improve cash flow, pay employees and suppliers, as well as allowing the business to reinvest in operations and growth earlier than they could if they had to wait until their customers paid their balances in full.
There are two ways to fund invoices. The first way is through a sale. Invoices can be sold to a lender in exchange for an immediate payment. The second way is using receivables to secure a revolving line of credit through an asset based lending such as invoice finance.
It is easier to fund invoices than applying for conventional business financing because you are technically selling an asset rather than getting a loan. To get the maximum benefit and understand what is invoice funding your clients need to be commercial and hold a good credit score.
Invoice funding is an asset based finance product that has been around for several years, it is often referred to by the name invoice factoring, a common misconception is that it been associated with only being used by struggling businesses. Over the years this view has changed and today businesses have unlocked their cashflow with invoice finance enabling them to fund their growth and take their business to the next level.
The requirement to sell your entire ledger of invoices is not required as you can select to fund a single invoice.
How does Invoice Funding Help Fund Invoices?
We help to fund invoices by advancing upto 100% of an invoice value in 24 hours, this process can help business cash flow by releasing outstanding monies tied up in their accounts outstanding invoices.
This effectively is selling the unpaid invoice to a finance provider in order to fund invoices and have money available within 24 hours.
How does Invoice Funding work?
To fund an invoice it is really simple, once you have a facility in place, you will send a copy of the unpaid invoice to a lender, this invoice is simply paid by the lender into your business bank account, no more waiting 30,60 or 90 days for your client to paid you.
By funding your business invoices with us, we can provide up to 100% of the invoice value upfront within 24 hours of being approved
Apply for Invoice Finance for your Business
Invoice finance allows you to release tied up cash in outstanding invoices. So there is no longer a need to wait 30, 60 or 90 days for an invoice to be paid by your customer, Invoice Funding can advance up to 90% of the invoice value upfront within 24 hours once approval has been actioned.
SMEs and businesses alike rely on their invoices to be paid on time in-order to maintain a healthy cash flow. A number of different types of business sectors use invoice finance to help maintain a positive cash flow.
By releasing cash from your accounts receivables, you can effectively maintain a healthy cash flow or improve working capital.