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 factoringThis is the more popular form of invoice financing where you sell your accounts receivable in return for cash.
Asset based loanThis 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.
Manufactures a range of specialist seating for those with debilitating conditions, including neurological conditions, along with specialist paediatric care chair manufacturing. Unlimited bespoke manufacturing capabilities. Offers invited.
Established over 35 years and based in the South East. Sell and lease printer and copier products, as well as offering repair and maintenance services. Ongoing maintenance contracts of up to 5 years, coupled with lease agreements, contribute to circa...
Specialises in high-quality refurbishment and maintenance works, including joinery, plumbing, groundworks and building works. Operates on a diverse range of projects across a variety of sectors, including education, construction and social housing. O...
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