Factoring

Comparing invoice finance solutions

Are you searching for a new funding solution for your business? Have you heard of invoice finance but are unsure of which solution is right for you?

Start-up loans fail to take off

The Government last week expanded the Start-up loans scheme in a frantic bid to encourage more young and budding entrepreneurs to set up their own business.

With so many out of work and even the most established businesses suffering, the scheme was initially introduced in May 2012 to offer low-interest funding to 18-24 year olds looking to start a company. But with just £1.5 million lent so far under the scheme out of £82 million available, the Government has moved to dramatically expand the initiative.

Is your business dependent on an overdraft?

Are you relying on an overdraft to fund your business? Is the inflexible nature of your overdraft restricting the amount of cash you can access? Could your business do with a financial boost?

It’s a challenge that thousands of small and medium-sized businesses have encountered in recent times, but help is at hand. By releasing up to 90% of an invoice's value within 24 hours, invoice finance can provide an immediate cash injection for your business to help bridge the gap between billing and getting paid – commonly experienced when trading on credit terms. Invoice finance comes in several forms, including factoring and invoice discounting, ensuring facilities can be tailored to a range of requirements.

What is invoice finance?

With business invoice finance, the cash flow challenges of trading on credit are all but gone as your business can access the capital tied up in invoices overnight.

Instead of waiting weeks for payment, up to 90% of your sales ledger value will be released through invoice finance in a matter of hours to free the cash that’s essential to fulfilling new orders, meeting your day-to-day commitments and securing early settlement discounts with suppliers.