pound coins stacked upon each other to represent invoice finance.

Invoice Finance – What You Need to Know

Posted: 12th June 2018

Many business owners will tell you that they need to improve their cashflow. One of the most utilised facilities is Invoice Finance, used by over 40,000 businesses in the UK. So, how can Invoice Finance add value to your business?

  • Cashflow- as Sir Richard Branson said “Never take your eyes off the cash flow because it's the life blood of business”
  • Financial independence- can be used as a leverage to land on your own two feet. As a short or long term solution and supporting start-up businesses
  • Financial stability- a long term solution where your positive cashflow is guaranteed
  • Eliminating late payers and bad debt- speeds up your processes and frees up your time to support other areas of your business
  • Seasonality- our ICON (In Case Of Need) facility is there as and when you need it, supporting seasonal businesses

How Does Invoice Factoring Work?

A common misconception is that you are borrowing money, but the Invoice Financier is simply taking on the businesses’ debt. As a result, your cashflow is supported by receiving funds fast. There are 6 simple steps to Invoice Finance:

You deliver your goods or services and invoice your customer as normal

1. You send the invoice financer a copy of the invoice
2. You will receive 90% of the invoice value (including VAT) within 48 hours. A sum of your choice is then transferred to your account the same day
3. The Invoice Financier chases the invoice on your behalf
4. Your customer pays the invoice financier
5. The balance of the invoice (10%) is released to you

In addition to Invoice Factoring, there are other options in the market which could also suit your business goals.

Other Options

Whether you are looking for a long or short term facility, we can match a facility with your business needs. Providing alternatives to standard Invoice Factoring;

  • Confidential Invoice Discounting- Similar to Invoice Factoring, except your entire facility will be confidential and you manage the credit control. However, if you wish you can work with our credit control team, who would act as part of your business without your customers knowing of our involvement.
  • Selective Invoice Finance- Also similar to Invoice Factoring, however you can select the invoices you wish to factor.

Adding Value to Your Business?

A facility that grows as your business grows, doesn’t charge personal assets and has very competitive charges.  We tailor solutions appropriate to the specific industry and cashflow requirements.

Switching to Calverton

You will be paired with an expert who will explain which options are best for your business and create a bespoke quote and approval. Please call us on 01908 268888 or email enquiries@calvertonfinance.co.uk.