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Trending: SME Invoice Finance

UK businesses are increasingly looking towards invoice finance in a bid to secure their finances during the pandemic.

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UK businesses are increasingly looking towards invoice finance in a bid to secure their finances during the pandemic.

As the threat of late paying customers becomes more prevalent, and invoices are paid in excess of 60, 90 days + as the norm, businesses up and down the UK are looking to factoring and invoice discounting (commonly known as Invoice Finance) to keep a fluid, uninterrupted cashflow.

It's resulted in a trend in the UK's most popular form of alternative finance that enables business owners to organically manage their cashflow and working capital by releasing monies locked up in issued, unpaid invoices.

Filling The Gap Between Payment And Cashflow
In particular, SME businesses are realising the benefits of this finance facility, that sees payment of up to 90% on issued invoices made on the same day, with the balance paid when the client settles.

Choice Of Factoring Facilities
Invoice finance comes in many forms meaning you can choose the facility that best suits your needs:

  • Invoice factoring – releases capital on issued invoices, up to 90%, within 24hrs, balance paid when client settles, where the factor will act as your outsourced credit control function.
  • Invoice Discounting – this confidential facility offers the same payment benefits as invoice factoring but the customer will not know about the involvement of a 3rd party.
  • Selective Invoice Finance – choose which clients you will factor invoices for; helps cover seasonal lows and highs or larger, ad hoc invoices.

The Federation of Small Businesses has been warning SMEs against the damaging effect that late payment has on a business; it has even waged a campaign to name and shame larger corporations for continued late payment to SMEs.

Chase Growth, Not Invoices
A business needs to concentrate it's energies on growth, seizing opportunities as they arise. You do not, as a business want to be spending unnecessary hours chasing unpaid invoices – many business owners are embarrassed by chasing late payment or uncomfortable in doing so, especially when they also have to keep a strong relationship and rely on the customer for future sales.

Financial Stability
Invoice finance facilities offer financial stability by ensuring a robust cashflow. Without cashflow a business cannot cover it's own overheads, let alone negotiate better terms with suppliers. Cashflow is a vital part of any successful business.

Targeted And Tailored Lenders
With over 50 invoice finance providers in the UK market, there is a provider that will support your business and offer a workable, cost effective and suitable facility. But it’s hard to find the one most suited to your needs.

Unrivalled Expert Broker
28 years ago I became the first broker in the Invoice Finance market. I am an expert witness on the subject of Invoice Finance and asset based lending and have written many articles and spoken at many events on the subject. Combine that with the fact I am completely independent , I am also well placed to suggest the most suitable provider for the sector you are in. I am not tied to any provider and I am not tied to any contract or target and unlike many brokers, I am free to access the whole of the market, usually at Director or Underwriter level which can considerably speed up the process.

Free Factoring Advice For Your SME
See how your business can benefit from invoice finance by talking to me today – call my direct number: 07785 596053.