If you have outstanding unpaid invoices, you can sell invoices to a factor. The outstanding amount will be turned into immediately cash, to the value of the invoices you are owed by your customers within 24 hours of the invoice being raised. All the while, you are still providing fair terms of payments to your customers.
Most business owners are not aware that they can sell their invoices in exchange for immediate payment. This financial product is knows as invoice finance and can help to ease the cash flow issues of your business.
How to Sell your Unpaid Invoices
The process to selling an invoice is a simple process, these can be processed through an online platform. All you have to do is upload a copy of the invoice you would like to sell. The lender of your choice will effectively purchase the invoice from you.
Once the invoice falls due in accordance with the terms and conditions of the invoice, it is also time for your customer to repay the lender. Depending on the size of your business and if you employ in-house credit collection department department. Lenders offer a collection service included in the cost if not to collect payment for you. You may choose to collect the payment from your customer yourself. Once your customer has settled the invoice amount with the lender a small balance is also forwarded on to you.
- We do not charge a fee for lender introductions
- Receive cash for invoices
- Raise funds in 24 hours
How much can I raise by selling my invoices?
By selling your invoices to a factoring company you will realise the full amount of the invoice. The buyer of the invoice is known as a factor, they will advance an amount of about 95% against the invoice to you. Once your client has paid the factor, the remaining 5% will be paid to you least any changes the factor has incured.
How quickly can I get funded?
Most clients can get their first batch of factoring unpaid invoices as soon as their account is set up. This set up process should only take a couple of days. However, subsequent invoices can usually be funded on the same day, as long as they can be verified quickly. Verification usually is just a telephone call from the lender to your customer requesting that the work has taken place.
Sell your Invoices to a Factor
You maybe looking to sell an individual invoice as opposed to all of the invoices in your outstanding sales ledger, you will want to use spot factoring or single invoice finance. There are a number of lenders who have specialised in offering spot factoring across the UK. We will help you understand which lender best suits your needs through a quick, no-obligation call. Our expert consultants will discuss your options and explain the process on how to sell your invoices. Should you wish to receive cash for invoices today, click on the Get a Quote button below to get started. Alternatively, you can speak to our team who are available to explain which single invoice finance service may best suit your circumstances.
How to qualify?
Qualification is simple for any business looking for invoice finance :
- You must be issuing invoices to anther business (business to business payments)
- Credit terms must be stated on the invoice (i.e. 30 days payment terms)
- The invoice must not already be overdue (this maybe considered a bad debt if it goes over your companies credit terms e.g. 60 days overdue)
The above is just an example of criteria, personal credit rating as not needed, and no security unlike with a bank loan or overdraft.
What do you mean Sell Invoices?
A sales invoice is an essential and common document used by all kinds of companies. Companies use sales invoices to inform customers of the amount they owe in exchange for goods or services that were sold.
How much does it cost to Sell invoices?
A factoring company may charge 2% for the first 30 days and 0.5% for every 10 days that the invoice remains unpaid. Fees are often referred to as invoice discounting rates.
How do I Sell an Invoice?
You need a funder, we can help you find the best fit lender depending on your needs, your industry, your business size, and expectations.
Invoice Funding can help with the Selling of your Invoices
Our expert consultants will take about 10 minutes to assess what are the best options for you and your business and in which way we can help you sell invoices. We work swiftly and with understand of what type of service you require from a lender. One of our aims is to secure you some favourable rates with the 2-3 lenders. As leading brokers in this industry we will suggest from our panel of over 20 of the UK’s leading invoice finance providers.
An invoice with credit terms gives due in 30, 60, 90 or even 120 days. This potentially leads to cash flow issues for the supplier. Many businesses in the UK today opt to utilise their accounts receivable and sell unpaid invoice to finance their companies.