Both these products use outstanding sales invoices within the business as an asset to generate cash.
Selective Invoice Finance
Selective Invoice Finance is where you choose which individual invoices you would like to fund and when.
This type of funding works if you have a seasonal business, large orders to deliver or a big bill to pay. If your business relies on a customer or contract, and their business represents a large chunk of your revenue, selective invoice finance would be a right choice for you.
When Would You Use Selective Invoice Finance?
- You have occasional and intermittent cash flow issues
- You sometimes take on larger jobs which need additional funds
- You have a large payment to make, such as tax liabilities
- Your sales ledger is highly concentrated e.g you have certain customers who take up a large proportion of your sales
Invoice Factoring This service is different to Selective Invoice Finance as it provides you with funding across all your sales ledger and customers. We can advance up to 90% of the gross value of the ledger.
The big advantage of these facilities is that the funds advanced are a percentage of your sales ledger, which it means that as your sales increase so does your facility. You don’t need to worry about future cash flow requirements as the Invoice Finance facility automatically grows with you.
When Would You Use Invoice Factoring?
- You are in a high growth stage and need additional working capital
- You want to pay suppliers early and receive a settlement discount
- Major customers are extending payment terms
- Your cash flow is tight and important payments are being missed – e.g. HMRC payments or key creditors.
- Your bank overdraft has reached its limit, but you need additional funds
With both Factoring and Selective Invoice Finance you can choose to add Bad Debt Protection, this will protect you against non-payment and customer insolvency. This is a cost-effective service which gives you peace of mind that you are covered.
How we can help?
We offer Selective Invoice Finance to any business looking for funds of £25,000 or more. This flexible facility is put in place very quickly and has no long-term contract so you can use it, as and when you need to.
Our very personal approach means that we look to understand your business and its needs. We will put together a facility that specifically suits you.
We can also provide you with a professional credit control service collecting your invoices in a courteous manner and saving you both time and money.
If you are interested in speaking to our team about your business funding needs, call us on 01908 268888 or email email@example.com.