Invoice Factoring

Invoice Factoring

Are you looking for the funding to grow your business? Are slow paying customers impacting on your cash flow? 

If you’ve answered yes to one of the above questions, then invoice factoring could be the finance solution for you. If you regularly invoice businesses, you may be eligible for invoice factoring which can significantly improve your cash flow almost immediately.

What is invoice factoring?

Invoice factoring is a type of invoice finance that allows businesses to release funds tied up in their sales ledger. Invoices are sold to a third party who will pay a percentage of what the invoice is worth, minus a service fee. This means you don’t have to wait for your invoice to be paid by your customer under your payment terms.

How does invoice factoring work?

With invoice factoring, the process of making money and getting paid becomes easier than ever. After raising an invoice with your customer, all you have to do is simply send a copy of the invoice to your lender, who will conveniently pay you up to 90% of the invoice amount within 48-72 hours.

When you factor invoices, you don’t have to do much more. The lender will collect the payment from your customer at the arranged date and send over the remaining value that you did not initially receive, minus the pre-arranged fees.

Funding Timeline

Below is an example of how invoice factoring works:

Raise Invoice

Raise your invoice for goods or services and notify lender via their online Invoice Factoring system.

Receive Payment

Your lender will then transfer the lending balance at the agreed rate, directly into your bank account.

Customer Pays

Your lender will then collect payment from your customer at the agreed credit period, for example 30 days later.

Receive Balance

You’ll receive the balance of the invoice from the lender, minus any agreed fees.

For more information about invoice factoring, contact our specialist team on 0800 009 6106 or

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0800 009 6106