Invoice Financing is a type of funding which reduces the time to get paid for goods or services by raising finance against the value of outstanding unpaid invoices, improving your business cash flow. The funds generated can be used for any business purpose.
This is a flexible form of borrowing, which helps to free up funds from debtor's book, allowing businesses breathing space to grow further.
Invoice financing has three ways of fundings available:
This allows you to discount your unpaid invoices with retaining credit control, that means you keep dealing with your customers. It is generally confidential and invoices discounted are collected through the business.
It allows you to sell your invoices to the factoring company who then collects payments directly from your clients. This type of financing is suitable for smaller businesses where book keeping and credit control functions are limited.
This is a flexible and cost effective way of financing, you can choose amount and raise funds as and when required on specific selected invoices or debtors, it is best suited to businesses where cash flow requirement is seasonal.
How it works?
▶ You invoice the customers for the goods and services provided.
▶ The detail of invoices required for factoring are sent to the finance provider.
▶ According to your finance agreement the percentage of the value of the invoice is paid to you within 48 hours.
▶ As per agreed factoring terms, either you or finance provider will chase for payments.
▶ On receipt of payment from your debtors, after deduction of lenders service fee the balance of the invoice that you didn’t receive earlier is paid back to you.
We can assist you with best possible financing facilities well suited for your business needs.
For further information please contact us.
