…is now the largest form of business lending in the UK market place.
Cashflow can have a detrimental effect on a business; no finance function runs smoothly all of the time and organisations frequently experience delays in receiving invoice payments. Invoice finance is a form of credit that releases up to 90% cash from outstanding invoices as soon as they have been raised. The remaining 10% balance is paid once the customer settles their invoice.
How does it work?
- Invoice is raised by the client and sent to their customer
- Client sends details of the invoice to the Funder
- Funder will make up to 90% of the value of the invoice available to the client within 24 hours
- Payment is collected from the client’s customer (either by the client or by the Funder)
- The remainder of the balance due (eg. 15%) less charges is then made available to the client