Invoice finance
What is invoice finance, and how can it help your business?
Waiting 30, 60 or 90 days to be paid creates real problems. A plain-English explanation of how invoice finance works, in four steps.
Tom Young
Co-Founder & Director
• 4 min read
Cash flow is the lifeblood of any business, but waiting 30, 60 or even 90 days for customers to pay invoices can create major challenges.
What is invoice finance?
It lets you take an advance against unpaid invoices, typically 80-90% of the invoice amount upfront, before your customer settles.
How it works, in four steps
- Issue your invoice as normal
- Receive up to 90% of its value, usually within 24 hours
- Your customer pays on the agreed terms
- You receive the remaining balance, less fees
The benefits
Faster access to cash, support for expansion, optional debtor protection against customer insolvency, and funding that scales with revenue rather than sitting at a fixed limit.
Is it right for you?
It suits businesses invoicing on long payment terms that need quicker access to capital. It's worth being clear about what it is: you're unlocking money you have already earned, not borrowing money you haven't.
For an independent, no-obligation review of your options, call 0330 0438 011.
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