Comparing Invoice Finance Companies – Rates starting at 1.5%
Invoice finance is a loan secured using outstanding funds owed to your company. Invoice financing allows you to access and use the majority of the outstanding amount immediately, eliminating the need to wait for payment by using the invoices as a type of security against a loan.
Finance for invoices can ease the financial flow of your company. Unpaid invoices are money that you will get, but if you have given them a specific amount of time to pay according to your terms of payment, you may have to wait weeks or months before the money reaches your bank account.
Invoice Finance Company Comparison
We compare the rates of invoice finance companies in the UK and are able to source a good deal with rates starting at 1.5%.
Factoring and invoice discounting are two of the available forms of invoice financing. All of them are made to offer asset-based financing, which means you may acquire cash right away without having to wait for your clients to pay.
- Invoice Factoring: When you use invoice factoring, the lender—not you—is in charge of obtaining payment from your clients. Customers’ payments will often be deposited into a bank account under the lender’s control, and they will be informed that you employ factoring. Because the lender will have more control over ensuring your consumers pay you on time, factoring carries a reduced risk for the lender. This implies that businesses with little turnover, a short commercial history, or any other difficult circumstances may find it more appealing for lenders to offer factoring. It’s also possible to include bad debt protection, which shields you from having to make up the difference in case one of your clients doesn’t make their payments.
- Invoice Discounting: By using invoice discounting, you can quickly access funds held in outstanding invoices and increase the value of your sales ledger. Your firm receives an instant increase in cash flow when you invoice a client or customer since the lender pays you a portion of the invoice total. An alternative perspective on invoice discounting is as a sequence of short-term business loans secured by invoices. Since the lender is aware that you are owed the money, they will advance you the majority of it even before your client makes a payment.