Grow Now, Pay Later: Financing your business Invoices
What is Finance For Invoices?
All businesses have payments to make. Whether it be Accountants who bill for their services. Solicitors costs. Refurbishing premises. Paying for Recruitment consultants or software development. Suppliers want to be paid for their work and usually require payment in full. Settling costing invoices can really drain business cash-flow and many businesses are now choosing to allow finance company to pay the invoice on their behalf and spread the repayment over the year. This reduces the strain on cash-flow and stress from chasing creditors.
Decision within 24 Hours
Flexible Drawdown to settle invoices
Any business expense can be funded
How Does Financing For Invoice Work?
Each business is assessed initially for a credit limit. This is usually between £50,000 – £250,000 (but can vary). Underwriting process is simple, by connecting banking data to an online portal you will be given an offer.
Once the credit limit is in place you will have access to a portal where you can submit invoices for payment. When your supplier invoices you, simply load it onto the portal and it will be paid direct. The lender can use specific bank payment release process so that the supplier does not even realise it has come from a 3rd party. This will trigger loan repayments, usually over 12 months for the amount on the invoice and NOT the overall credit limit – meaning you only pay interest on the value of invoices submitted.
- Improve Cash flow
- Suppliers paid in 24 hours
- Flexibility to use whenever you need and no charges for unused funds
Example. A seasonal business like a restaurant could have undertaken a refusbishment. Meanwhile there are stock invoices to settle and at the same time the annual accountant bill comes through. Settling all these invoices may not be possible, or if it is could place significant strain on cashflow.
By leveraging finance for invoices, all these invoices are settled immediately and the restaurant is able to repay the lender in smaller, fixed repayments over 12 months.
What Invoices Can Be Funded?
- Software Licence
- Accounting / Legal Fees
- Utilities
- Recruitment / Staffing Fees
- Emergency Repairs
- Remedial Works
- Supplier Payments
- Advertising Campaigns
- Shipping Costs
What problems Does Finance For Invoice Solve?
Cashflow Issues: For most businesses ‘cash is king’. Paying chunky invoices can have a detrimental effect on cashflow. When business owners are concerned with covering bills, their time is not spend on business positive activies. Spreading the invoices over the year takes this pressure off and allows business owners to focus on what they do best.
Unexpected Bills: Some invoices catch us by surprise. It could be an unexpected problem like having to recruit to replace a staff member who left, or having to use tradesman to fix a roof! Often businesses do not budget for unexpected issues and a service like this can immediately solve the problem.
High SAAS Costs: More businesses are using technology to manage their operations, which leads to increased efficiency. However good software is not cheap. Whether this is software development costs, or annual licences we need to fund these.
Uncomfortable payment terms. Many suppliers require upfront payment or rigid payment terms. Using a solution to spread the invoice can alleviate this issue.
Am I Eligible For Financing My Invoices?
Yes, you may be eligible for invoice financing through our partners. Here are the general criteria you should consider:
Eligibility Criteria
- At least £80,000 average monthly revenue.
- At least 18 months trading history.
- You should be a limited company.
- Your business must be based in the UK.
- Directors must be UK based.
- Businesses must have suppliers they pay in the UK, EU, or USA.
Type Of Invoices We Cant Pay
- Can only pay to registered Businesses
- Suppliers must be trading for at least 12 months
- Invoices to HMRC i.e VAT or Tax
- We can fund delivered inventories, so long as their not perishable
What Businesses Apply To Funder Invoices?
At it’s core this product is available for any business in any sector. Because the minimum credit limits are set around £50k currently, the facility is more geared towards larger more established businesses, as opposed to smaller new starts. But because any and all businesses receive invoices, this is available to any business that meets the minimum threshold criteria.
How Do I Apply To Finance My Invoices?
Application Process
- Sign up to the Platform through our referral link.
- Add personal and business details.
- Connect all your business bank accounts through open banking for accurate financial assessment.
- Submit your application.
In addition to the above steps, you might need to provide accounting documents, such as your Profit & Loss statements and Balance Sheet. Also, you need to give a context and overview of your company and a summary of current finance and outstanding debt in the business.
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Frequently Asked Question
Secure your business cash flow by letting a finance company handle your payments – from accountant fees to software development costs. Experience a swift 24-hour decision process, enjoy the flexibility of settling invoices, and fund any business expense with ease. Minimize creditor chasing and enhance your financial sustainability by spreading repayments throughout the year.
Suppose Business X has outstanding invoices totaling $10,000, set to be paid in 60 days. However, Business X needs immediate funding to cover operational costs. To secure this funding, Business X approaches Lender Y with its outstanding invoices and applies for invoice financing. Agreeing to a 4% fee, Business X receives the funds it needs promptly. This example shows how invoice financing can help businesses quickly access funds otherwise locked in unpaid invoices.
Avoid cash flow concerns and unexpected bills disrupting your business operations. Opt for invoice financing to spread costs over the year, enabling more focus on growth-oriented activities. Tackle surprise expenses, such as sudden recruitment or emergency repairs, effortlessly. Manage high software-as-a-service costs and negotiate rigid supplier payment terms with ease by utilizing invoice spread solutions.
Obtain a credit limit up to £250,000 through a simple underwriting process. Submit invoices via our portal for direct payment, with repayments tied to invoice value, not total credit. Experience improved cash flow, 24-hour supplier payments, and no charges for unused funds. Even a restaurant facing multiple expenses can leverage invoice financing, easing cashflow and repaying in manageable 12-month instalments.