Invoice Finance

What is it?

Invoice Finance is a source of short‐term funding and has the capacity to increase in line with the expansion of a business. Invoice financing can give businesses a timely cash injection by releasing money tied up in outstanding invoices, effectively providing an ongoing supply of capital that is linked to company sales.

As an invoice is raised, it is sent to the Invoice Finance provider and typically, 85% of the value of that invoice is released within a very short time period e.g. 24 hours.

The remaining value, less a small service fee is paid once the customer settles the invoice.

What are the benefits?

  • Immediate injection of cash against outstanding invoices
  • Release a significant portion of the invoice value in UK and also overseas markets, improving cash flow.
  • Flexible financing as Invoice Finance provides an ongoing supply of cash against invoices as they are raised

Where can I find out more?

Further details can be provided by your local corporate bank or through the Asset Based Finance Association (ABSA): http://www.abfa.org.uk/

Download the factsheet in PDF format - here.