For those struggling to raise enough money to grow their business, an invoice finance broker can help. Many firms do not realise that they can use their biggest asset – their outstanding invoices – to raise the money their business needs to stay viable and grow.
Invoice factoring and discounting
Using outstanding invoices, most firms can arrange short-term loans for themselves. This is called invoice factoring or discounting.
The way it works is that our clients contact us with details of outstanding invoices they would like to borrow against. We carry out some basic checks and provide them with access to the money they need to borrow. When their customers pay their invoices, the loan, fees and interest are paid off.
It is possible to borrow up to 90% of the value of each invoice. A firm can borrow in this way against just one invoice or, if they need more money, several invoices.
The advantages of invoice factoring
The best thing about borrowing in this way is that it is totally flexible. How much is borrowed against each invoice is entirely up to each individual firm. It is possible to take out recourse insurance, to protect a firm should a customer not pay their invoice, so it can be a secure way to borrow money.
The invoice finance broker requires no cost justification or business plan from a client. It is up to the firms borrowing the money to decide how they use that money.
Many firms use invoice financing to help them with cash flow. Every firm has times of the year where its outgoings are higher than its income. Invoice financing is a great way of managing these periods, and ensuring that wages and bills are paid on time.
If you need an invoice finance broker to help you to take advantage of invoice factoring or discounting, contact us over the phone or via this website. We can quickly arrange a loan against any of your outstanding invoices, as well as other business assets such as plant and machinery or raw materials.