What is Invoice Finance?
Invoice Finance is a form of business funding which gives a line of credit that can be drawn down from, similar to an overdraft. Invoice Finance can be used by any business that issues invoices to other businesses on credit terms. The funder can then release the value of these invoices immediately following their issue rather than waiting for the customer to pay (typically 60 or 90 days later). The business can use this cash to continue growing rather than waiting for these invoices to be paid before reinvesting that cash.
Invoice Finance is typically used for day-to-day working capital; paying suppliers, staff, covering overheads etc. It can work alongside other funding methods such as loans, asset finance, or cashflow lending as the main security (the company’s receivables) is separate and easy to monitor.Enquire Now