Invoice Financing
What is Invoice Finance?
Invoice finance enables businesses to quickly unlock cash tied up in outstanding invoices.
Why Choose Invoice Finance?
Invoice finance allows businesses to speed up invoice cycles and free up cashflow, rather than waiting for customers to make payment.
How it Works:
Simply pass unpaid invoices to the lender, who will release cash in exchange for a percentage of the invoice fee.
Invoice Finance at a Glance
Eligibility:
Any Business that raises invoices and offers payment terms to their clients (must be to other businesses not consumers)
Security:
Unsecured. Bad debt protection against unpaid invoices also available.
Facility Amounts:
Facilities available from £10,000 - £10m
Loan Terms:
Release up to 90% of the value of your outstanding invoices within 24 hours.
Repayment terms:
Revolving facility, no fixed term.
Interest Rates:
Between 1% - 5%
Invoice financing is a powerful tool for businesses looking to improve cashflow and access working capital tied up in unpaid invoices. At Elite Business Funding, we offer invoice financing for companies of all sizes, providing tailored solutions to meet your specific needs.
What is Invoice Finance?
Invoice financing allows businesses to release funds tied up in outstanding invoices without waiting for customers to pay. Payment terms can often extend to 30, 60, or even 90 days, which can put a strain on cashflow. With invoice financing, businesses can convert unpaid invoices into immediate cash, helping them to manage cashflow, pay suppliers, or take advantage of new opportunities for growth.
How does Invoice Finance Work?
The invoice finance process is simple and efficient. Businesses submit their outstanding invoices to Elite Business Funding and receive an advance on the invoice value, typically up to 90%. Once the customer pays the invoice, the remaining balance, minus a small fee, is transferred to the business.
Invoice financing allows businesses to maintain steady cashflow without waiting for lengthy payment terms. The service can be tailored to suit your needs, whether you require single invoice finance or funding for all outstanding invoices. This flexibility ensures that businesses can manage their cashflow more effectively, regardless of their size or the volume of invoices they issue.
What are the Benefits of Invoice Finance?
The main benefit of invoice finance is that it allows businesses to take control of their finances and receive the money that they are owed much more quickly (typically within 24 hours), rather than waiting for the agreed payment terms to elapse.
This makes invoice finance a great option for B2B companies looking to alleviate potential cashflow problems, by ensuring a faster turnaround on payment for work already completed. Businesses benefit from peace of mind knowing that they can focus on running their business without worrying about potential late payments.
Invoice finance is also an attractive option for new or start-up businesses who may not be able to obtain more traditional methods of working capital, such as overdrafts or business loans. Provided they are raising invoices, invoice finance can offer them a lifeline to the working capital they need to grow and expand.
Finally, invoice finance providers can effectively work as an extension of your business, as your credit control function. They will work on your behalf to collect payments from your customers, and in some cases provide credit checks on potential customers, as well as bad debt protection.
Types of Invoice Financing
At Elite Business Funding, we offer various types of invoice financing to suit the unique needs of businesses. Whether you’re a small company with occasional invoice gaps or a larger business with ongoing cashflow demands, we have flexible options to support your growth. Key types of invoice financing available include:
- Invoice Factoring. Factoring involves you submitting all invoices to our team, and then we advance you a percentage of the invoice value, usually up to 90%. Once the customer settles the invoice, we deduct a small fee for our services and return the remaining balance to you. Factoring is ideal for businesses that want quick access to cash and prefer to outsource the management of their accounts receivable and credit control to a trusted partner.
- Invoice Discounting. Invoice discounting is similar to factoring, but with one key difference – you retain control over your sales ledger and the collection of payments. You still receive an advance on the invoices, but you handle the communication with customers regarding payments. This may be a good option if you want to maintain your relationships with clients whilst still benefiting from immediate cash flow.
- Selective Invoice Factoring. For occasional cashflow needs, selective factoring is ideal. Selective invoice finance allows you to release funds for specific invoices rather than committing your entire ledger. Businesses can unlock funds as needed, providing greater flexibility and control over cashflow.
If you’re ready to unlock your cashflow and take control of your business’s finances, contact Elite Business Funding today to learn more about how invoice financing can work for you.
Invoice Finance Calculator
Your Repayments
Based on what you entered, we estimate your invoice finance repayments to be: