In this article we are going to discuss Invoice Factoring for Energy Brokers, as a way to ease cashflow issues. We will also look at other finance options like business loans.
Broking energy deals for SME’s can be a very lucrative business. By switching businesses to new energy/utility providers helping them save money, commission is earned making it a win win. However waiting months for the commission to be paid can put a strain on cashflow. With staff wages, office costs and other overheads to pay.
Especially in fast growing businesses, large amounts of money can get tied up in unpaid commission invoices with energy suppliers/wholesalers.
That’s why a revolving funding facility such as Invoice Factoring, may be a viable option to ease cashflow pressure. There may also be other business finance options available for Energy Brokers, such as an unsecured business loan.
Business Finance Options For UK Energy Brokers & Consultants
If you are the owner/director of a Energy Brokers in the UK, then you may be looking at ways to ease cashflow pressure and raise funding to grow. However its not always possible to get the funding you need from your main bank.
That’s why there is a large number of alternative and specialist business funding providers in the UK. With finance such as Invoice Finance and Business Loans potentially an option. Factors such as how long you have been trading, financial results (profitability) and more, will effect which options are open to your business.
Finance options may include:
Get in touch to discuss your specific requirements with one of our independent commercial finance brokers.
Lets look at each option, how it works and what the eligibility criteria may be.
It may be possible to release a percentage of your unpaid invoices/commissions using an Invoice Factoring Facility. There are a small number of factoring companies that will provide factoring for energy brokers and consultants. As its a revolving facility this option provides a long term solution to cashflow issues.
Ideally you will have been trading for over 1 year to show a track record of how long it takes for commission payments to be made and percentage of credits/claw backs.
- Release Percentage Of Unpaid Invoices/Commissions
- Revolving Credit Facility
- Access Funds Owed By Energy Suppliers & Wholesalers
Factoring is usually on a disclosed basis and will usually involve credit control. You can read more about this by clicking here on our Invoice Factoring page.
Similar to Factoring, Invoice Discounting is another type of Invoice Finance facility that may be available. The main difference is that it is usually confidential, so that your energy supplier partners are not aware of it. Also you keep control of the credit control and debt collecting process.
This options is generally only available to larger SME’s with established turnover and in house credit control functions. You can read more about it here.
If your energy brokerage is well established and profitable, you may be able to apply for unsecured business loan instead. This would provide a lump sum upfront, repayable with a fixed monthly repayment over 1-6 years.
Apply For Invoice Factoring For Energy Brokers
As an independent commercial finance brokers, we can access your funding options and arrange quotations.
We work with a large number of invoice finance and business loan providers.
Fill in the form below and we will get in touch straight away.
Alternatively you can call us on 0161 5469128.