Invoice Finance Brokers

Invoice Finance is a type of business lending that is secured against your outstanding debtor book. If you are owed money from your customers, you can release up to 100% of the outstanding value. This only applies if you trade B2B and offer credit terms to your customers.

Key Criteria. In order to use invoice financing in your business, you must trade with other businesses (B2B) and offer credit terms to your customers, such as 30 days payment terms after invoice. Some banks and lenders will have their own minimum requirements on turnover, sectors and other factors. However we can assist in guiding you to lenders that will match your individual circumstance.

Key Features

• Release Cash Tied Up In Invoices (Up to 100%)
• Fast Access To Funding
• Revolving Credit Facility
• With or Without Credit Control
• Disclosed or Confidential

An Invoice Finance company will agree to pay you a set percentage of your outstanding invoices. For example if your debtor book is £100k and they agree to a 90% payment percentage, the lender will make £90k available for you to draw down as required.

Any applicable fees and/or interest will be deducted from the available balance. Once your customer pays the invoice, the balance is cleared with the lender. The amount of involvement the lender has in your credit control will vary by lender and also depending on if you are Factoring or Discounting.

There are a number of benefits of working with expert Invoice Finance Brokers, such as ourselves. You will benefit from our market knowledge, we will make sure you are not wasting time applying with Invoice Finance companies that you do not qualify for. Rather than submitting your details to multiple lenders directly, we do the hard work for you and you just have one point of contact.

Benefits of Using A Broker

• We search the market for you
• Single point of contact
• Independent Invoice Finance experts
• Fast Quotes & Funding Approvals
• Questions answered and jargon explained
• Help with niche & difficult funding requirements
• Assistance with negotiations, forms and applications

We do not charge any broker fees on Invoice Finance applications. However we may receive a commission for introducing you to a lender, should you take finance.

The fees vary significantly between lenders and will be dependent on a large number of factors. Things such as your turnover, sector and credit profile will have a large impact on pricing. The main fees you need to be aware of are a setup or arrangement fee, a service charge, and an interest or discount fee.

Other potential fees may include bad debt protection, refactoring fees, credit note fees, annual review or renewal fees and survey fees. For a full breakdown with worked examples, see the costs of factoring.

When you use Invoice Finance, the lender is essentially purchasing the debt from you. You sell your invoice for an agreed fee so that you do not have to wait for your customer to pay the invoice. This can be done on an ongoing revolving basis or just as a one off standalone transaction. This frees up money to help your cashflow.

Invoice finance is commonly used in the following industries. However it can be suitable for most sectors that trade on credit terms. Invoice finance is not available for B2C businesses.

• Manufacturing Companies
• Engineering Firms
• Transport, Logistics & Haulage
• Couriers
• Recruitment & Staffing Agencies
• Construction & Builders
• Energy Brokers & Utility Consultants
• Exporters
• Security Providers & Installers
• Wholesalers & Importers
• Marketing agencies

An Invoice Finance Broker searches the market to find you the facility you need for your business. We can compare quotes, negotiate offers and assist through the whole application process.

An experienced broker like ourselves can help package and present your application to appropriate funders. This can help to improve chances of acceptance and this means less work for business owners and directors. We have a large panel of trusted invoice finance partners that we work with to find you the finance you need.

Typically one to three weeks from application to first drawdown, depending on the funder and how quickly the paperwork comes back. A single invoice facility can be faster. Once a facility is live, funds against a new invoice are usually available within 24 hours.

With factoring, yes, because your customers pay the funder directly. With invoice discounting the facility is confidential and your customers continue to pay you as normal. Some funders also offer confidential or white label factoring.