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Invoice finance
Using invoice finance to improve cash flow
The mechanics in five steps, and the seven benefits that make it a tool for growing businesses rather than struggling ones.
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Tom Young
Co-Founder & Director
• 4 min read
Invoice finance, also known as invoice factoring or accounts receivable financing, is a tool businesses use to improve cash flow. A lender advances funds against your invoices immediately, removing the wait for payment.
The benefits
- Rapid access to cash
- Predictable cash flow
- Working capital unlocked from the ledger
- Flexibility in how the facility is used
- Credit management support
- No additional debt on the balance sheet
- Scalability as the business grows
How it works
- Generate your invoices as normal
- Submit them to the finance company
- Receive an advance, typically 70-90% of value
- Pay the service fees
- Collect the remaining balance once your customer pays
For an independent, no-obligation review of your options, call 0330 0438 011.
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