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.
Please note, this is an accelerated sale process. Expressions of Interest by close of business 22 March 2019. All offers are to be received by COB Wednesday 27 March 2019 with a sale to be completed as soon as possible.
Offers a full pallet in and out service. Services include space rental, lorry parking, storage, container tipping, order picking and shunting. Offers invited.
Well-known sports brand with an extensive history and heritage in all the major sports markets especially football, rugby and fashion, as well as many other sports categories which include product areas such as footwear, textiles and accessories. Off...
Sign up to receive our acquisition alert emails to get your FREE guide
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources