Invoice Finance; Did You Know?

As a small business owner, you’re always looking for ways to improve your bottom line, but did you know that invoice finance could be one of the smartest moves you could make? Many business owners are surprised by the facts and figures associated with invoice finance.

How Popular is Invoice Finance?

Invoice finance is actually one of the most popular forms of financing for small businesses due to its accessibility and flexibility.

According to UK Finance, an invoice finance facility ‘supports clients of all sizes, from start-ups to corporates, and provides particularly important support for small businesses.’ UK Finance also reports that currently, around 40,000 businesses benefit from invoice finance in the UK.

Invoice finance is not only for growing and successful businesses, but it is also a popular choice for businesses that may struggle to obtain traditional financing. This is because invoice finance companies typically do not require businesses to have perfect credit or years of successful trading in order to qualify for financing, and nor do they generally ask for additional collateral such as charges on properties as the invoice finance company principally looks at the credit rating of your customers and the way you serve these.

A reputable invoice finance company will also work closely with businesses to ensure it really understands what they do and how they do it, it is far more of a partnership than an arm’s length financial transaction as they support you to achieve success and growth.

Invoice finance for Different Industry Sectors.

Invoice finance is used by many businesses, across different industry sectors such as:

  • Couriers & Hauliers
  • Temporary recruitment/staffing agencies
  • Manufacturing
  • Wholesales
  • Nursing Agencies and Care Homes
  • Healthcare Medical Supply
  • Cleaning
  • Logistics
  • Engineering

Invoice Finance Can Be Used for a Variety of Purposes.

Invoice Finance can be extremely helpful for business owners who are struggling to make ends meet for a variety of reasons, and the cash can be used for whatever purpose you need it for within your business. For example, many business owners use invoice finance to pay for inventory or to cover the cost of unexpected expenses. Invoice finance can also be used to help businesses expand their operations or hire new employees.

Key Benefits of Invoice Finance.

Did you know that an invoice finance facility …

  • such as factoring takes away the stress of credit control and chasing payments due from your customers. This means that you can instead focus on your business and leave the credit control to a professional team.
  • can provide businesses with around 80-90% of the value of invoices straight away and receive the balance (less fees) when their customer pays.
  • can be used even if you’ve been previously rejected from the bank, might not be considered creditworthy, or have only recently started trading.
  • is competitively priced.
  • helps you bridge the gap between invoicing and receiving the final payment.
  • helps manage peaks and troughs in cash flow as your business grows.
  • is a viable low-cost finance solution for growing businesses.
  • allows access to cash quickly – No need to wait 30, 60, 90 days or more for customers to pay.
  • gives the ability to free up time spent chasing late payments.
  • improves your business cash flow and working capital.
  • is easy to access with a straightforward and short application process.
  • it’s flexible; you choose which customers you want to factor.
  • doesn’t require other assets or collateral.

And while we are looking at the extensive list of benefits, let’s dispel the myth straight away that invoice finance is the last choice for businesses looking to raise finance. In fact, for many, it can and should be the first choice.

If you’re a business owner who is looking for a way to improve your cash flow, then you should consider an invoice finance facility. When choosing an invoice finance company, it’s important to do your research and to select a company that has a good reputation, offers competitive rates and importantly, we believe, is a Member of UK Finance.

Working with Partnership Invoice Finance.

At Partnership Invoice Finance we want to help businesses grow, which is why we offer invoice finance to start-ups, SME’s and those requiring funding up to and in the region of £1,000,000 and sometimes even more. We will expertly manage all aspects of your sales ledger management function, from the moment that you notify us of the sales transaction, to the point when the debt is paid.

Contrary to widespread belief, factoring is not just about how much prepayment can be drawn, but critically the quality of service rendered. Reliable and efficient management of your ledger will naturally create strong cash flow. Our procedures rely upon personal, regular customer contact rather than just a sequence of statements and overdue letters raised and dispatched by an automated system.

Attention to detail is essential in determining the correct identity of the debtor and corresponding with them on a timely basis. A good rapport with your customer will ensure prompt payment of the debt. Our online system allows you remote access to your ledger and control account, enabling you to remain fully appraised of your position at all times.

Contact us today and let us help you ease your cash flow burden and plan for the future of your business.