Invoice financing is a funding option for a continuing business or start-up without necessarily approaching a bank.
Also known as accounts receivable financing, the premise of invoice financing is based on borrowing against unpaid invoices, that is, your company’s accounts receivable. Essentially, your loan is financed on the invoices you provide to your clients and customers.
Why use invoice financing?
Invoice financing allows businesses to improve cash flow, pay employees and suppliers as well as invest in further growth. The borrowing method is attractive for lenders as the invoices are essentially a form of security. Lenders can also limit their risk by only providing 70-80 per cent of the value of the invoices.Invoice factoring
This is the more popular form of invoice financing where you sell your accounts receivable in return for cash.Asset based loan
This type of invoice financing is considered an intermediate product between factoring and a bank line of credit that enables capitalisation of assets. As the name suggests, an asset based loan is a process where the company's assets are used as collateral to acquire a loan. One type of the asset that can be used for such loans is your company’s invoices. You can also use your equipment, machinery and real estate.For sale is a long-established tree surgery and arboricultural services business with an excellent reputation, serving both domestic and commercial sectors across Southern England, including the Home Counties and London.
An opportunity has arisen to acquire a mechanical engineering company specialising in the Water Industry. Benefitting from over 3 decades of trading, this business has built a solid and long standing client base comprised of prominent UK utility comp...
An opportunity has arisen to acquire a reputable IT support and development services provider with a UK-wide client base and a proven record for innovation and resilience in the constantly evolving IT sector. Throughout its 25+ year trading history,...
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