What is Invoice Finance?

Invoice financing facilities provide finance against your unpaid invoices. Therefore, where invoices have 90-day terms, they can severely affect your business cash flow. Plus, we find business cashflow suffers further when there is a change in invoice terms from 30-day to 90-day terms. Therefore, the business struggles to fund a further 60 days before receiving revenue.

You could obtain finance against invoices and receive up to 80% of the outstanding invoice. Then the remaining 20% is received once your customer pays the invoice (minus the interest and costs). Also, the financing costs are related to individual invoices. Therefore, they are a cost of sale and not an ongoing overhead.