The concept is straightforward with Invoice Factoring Sheffield. Instead of having to wait weeks for your invoices to be paid by your customers, the invoice finance company (lender) will advance you most of the VAT inclusive value immediately, should you request it. That means you have access to the money from completed work immediately, so you can focus on running your Sheffield business. Locally based just out of the city centre we can respond to your request to asset based lending requests within the day. Invoice Factoring is perfect for any business based in Sheffield that is looking for funding.
How does Invoice Funding help businesses in Sheffield with a cash flow solution? There are a number reasons why Sheffield Companies may look at using invoice factoring to improve their current situation. It maybe that you’re struggling to cover your running costs or that lengthy invoicing terms of 30, 60, 90 or 120 days before you receive payment, this may be restricting the amount of new work you can take on. This has a harsh effect on cash flow for any small business.
When you raise an invoice to your customer, you will also need to send a copy to the invoice factoring company. They will then transfer up to 95% of the invoice value to you within 24 hours, providing you with an cash injection.
Your factoring company will take charge of collecting the debt from your customer and once the remaining balance has been paid it will be provided to you, minus their fees, its as simple as that!
Features of Invoice Factoring
- The lender will provide credit control services to keep your customers paying on time by sending regular statements of account, reminder letters and telephone calls as appropriate.
- Outsourcing the credit control allows you to focus more on your business and not having to chase late-paying customers.
- The lender handles collecting payment from your customers, so your customers will know you’re using a factoring provider.
- The lender can provide credit checks on existing and potential customers.
- Well suited to small or early-stage companies.
Benefits of Factoring
- Factoring bridges the cash flow gap between paying suppliers and getting paid
- Credit control expertise helps to reduce in-house overheads and improve collection times
- More flexible than overdrafts and bank loans, as funding grows in line with sales ledger
- Credit protection can safeguard against debtor insolvency or protracted default
- Improved cash position can help you secure supplier discounts
Commercial Finance for Sheffield Businesses
If you are a Sheffield based business looking to raise commercial finance, Invoice Funding are ideally positioned to help you.
We are experts at helping owner managed businesses raise finance. Our strength lies in our experience and knowledge of the many different financial organisations that are available to businesses. We can help your application be successful by finding the right active provider of commercial finance and ensuring your application complies with their lending criteria.
How Can Invoice Factoring help your Sheffield Based Business?
There are a number reasons why businesses based in Sheffield may look at using invoice factoring to improve their current situation. It maybe that you’re struggling to cover your running costs or that lengthy invoicing terms are restricting the amount of new work you can take on.
Due to the relationships with invoice funders we have carefully nutured with our years of experience, we are best placed to negotiate special rates and arrangements. This puts us in a position to secure more favourable terms and conditions with our panel of funding lenders than if you contacted them directly. Combining this with our market leading industry knowledge and insight, it means that Invoice Funding is the only name in Sheffield you need to know when it comes to sourcing finance solutions.
If so then it may be worth considering invoice factoring as a funding solutions for your Sheffield business. This allows you to gain access to essential funds as soon as your invoices are sent out, giving you the capital you need to grow your business.
We are a local Sheffield Invoice Factoring and Invoice Discounting Broker, Sheffield based businesses looking for Invoice Factoring please complete our online enquiry form and a funding consultant will contact you by return.