What is Invoice Finance?
Lochend Finance can access a range of different Invoice Finance solutions for your business improving your cash flow and reducing your reliance on other forms of finance, such as bank overdrafts. Invoice Finance is suitable for newly established businesses as well as those that have been trading for some time. Invoice Finance comes in different forms and we can guide you to what is best for your business from Confidential Invoice Discounting, Factoring, Construction Finance and Spot Invoice Factoring.
How does it work?
All styles of Invoice Finance work in a similar way. The business raises an invoice which normally takes 30, 60 or even 90 days to be paid. The Invoice Finance provider will advance up to 90% of the value of that invoice within 24 hours. The business receives the balance of the invoice once it has been paid, less charges and interest.
As mentioned above, there are 4 main types of Invoice Finance:-
- Confidential Invoice Discounting
- Construction Finance
- Spot Invoice Factoring
For a detailed description of how each of these differ, take a look at our Guide to Invoice Finance which can be accessed here.
Some of the key benefits of an Invoice Finance Solution include:
- Up to 90% of the Invoice Value paid to you within 24 hours.
- Invoices are upload online to the Invoice Finance provider’s systems.
- Online systems allow you to track invoices easily.
- Bad debt insurance can be included if necessary, to give additional peace of mind.
- Facilities can be offered to most Business types and industry sectors.
- Reduced finance costs over traditional overdraft facilities
- Easy to set up and the service can be operational within 7 – 10 working days.
- The facility can grow as your business turnover grows.
We offer free and unbiased advice and will tailor an Invoice Finance solution for clients to meet their exact needs and budget. Our level of service is extremely high which is vital at a time when more and more businesses are finding that they have to look beyond the traditional Bank overdraft to satisfy their increasing cash flow needs. We will provide you a view of the entire market – quickly and efficiently and can implement an Invoice Finance solution without disruption to the running of your business.
For more information and to see how a flexible Factoring Solution can benefit your business. Please call us today or submit an enquiry and we will contact you.