Invoice Finance
Invoice Finance
Improve your Cash Flow with Factoring and Invoice Discount services. Factoring and Invoice Discounting are rapidly growing in popularity and are used today, in some form or other, by around 25% of UK business owners. Whatever the size and age of your business if you would like to discuss the suitability and benefits then please submit an enquiry or request a call back.
Sectors We Support:
Sectors We Support:
✅ Manufacturing
✅ Wholesale and Retail trade
✅ Transport and Distribution
✅ Construction
✅ Wholesale and Retail trade
✅ Transport and Distribution
✅ Construction
✅ Printing
✅ Recruitment
✅ Business to Business
✅ Business to Business
What is Invoice Finance?
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Invoice Finance
Managing cashflow is essential to the success of any business. If you issue invoices for goods or services to other businesses and find yourself waiting to be paid or managing late payments, Invoice Finance can offer many benefits to businesses.
If any of these situations sound familiar, invoice finance could give your business the cashflow injection it needs. By releasing cash against your outstanding customer invoices before they’ve been paid you can manage your cashflow, and your business, more effectively.
How Does Invoice Finance Work?
There are two types of invoice finance products: factoring and invoice discounting, the biggest difference between them being who collects the customer payments.
Each allows you to release a large proportion of an invoice’s value within 24 hours of its issue. Then, once your customer
has made their payment, the remaining balance is paid to you, minus any fees.
Many businesses that use invoice finance also add bad debt protection to make sure that they still receive payment if their customers can’t settle their invoices. This is known as non-recourse factoring.
How Does Factoring Work?
Factoring is an attractive option for smaller businesses, whose resource would be better spent on day-to-day activities. Because a dedicated credit control team collect your outstanding invoices, your time is freed up to concentrate on running your business.
How Does Invoice Discounting Work?
Invoice discounting is similar to factoring, in that it gives you access to cash as you issue new invoices. However, a key difference is that you’ll be responsible for collecting your payments, while your use of an invoice finance product will be kept completely confidential from your customers.
- Complete your work or sell your goods.
- Invoice your customer and send a copy to your Invoice Financier.
- The Invoice Financier pays up to 85% of the invoice within 24 hours, allowing you to pay your staff, suppliers and take on new business.
- The Invoice Financier collects payment on your behalf, leaving you to focus on running your business.
- Your customer pays the Invoice Financier.
- The invoice Financier pays you the remaining balance minus the agreed fees.
What are the benefits of Invoice Finance?
There are many reasons businesses are increasingly turning to invoice finance. Here are just a few:
✅ BOOST YOUR CASHFLOW WITHOUT THE NEED FOR DEBT
Because invoice finance is not a loan, you’re not taking on any debt. This keeps your cashflow healthy.
✅ MORE TIME AND RESOURCE TO FOCUS ON YOUR BUSINESS
If you choose factoring, you get a dedicated credit control service, allowing you to focus your time and energy on your business.
✅ MINIMISE LATE PAYMENT AND BAD DEBT
To safeguard your business, you can choose to add bad debt protection. This is known as non-recourse factoring, where the Invoice Financier takes on your bad debt risk, unlike recourse factoring, where the risk of not being paid by your customers remains with you.
✅ REALISE OPPORTUNITIES
With an improvement in cashflow you’ll be in a better position to realise new opportunities, take on new orders or expand and invest in your business.
✅ TAKE ADVANTAGE OF DISCOUNTS FROM SUPPLIERS
You will be able to take advantage of volume discounting deals with your own suppliers as you will be in a position to buy larger units or to take advantage of supplier discounts for early payment.
✅ GET TO KNOW YOUR CUSTOMERS BETTER
Using Invoice Finance can give you useful information about the credit standing of your customers, which can help you to negotiate better terms with your suppliers. It also means you can take on better quality customers and improve your debt position between more customers instead of concentrated in just a few.
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Over 250 + Lenders
Reviews:
Would Highly Recommend Using Equinox Commercial Finance
"Simon helped us secure a mortgage on a commercial property to be used as a Children's Nursery.
From the start Simon helped us understand our options and quickly came back with the best quotes available.
He then helped with all the paperwork and documentation needed to provide to the lender and quickly came back with a finance offer that suited us.
I would highly recommend Equinox for any commercial lending."
Matthew Butterfield
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Office 1, Pen Y Dalar, Main Street, Thornton Le Moor, Northallerton,
North Yorkshire, YO7 3BX
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Equinox Commercial Finance Ltd (FRN: 841410) are Credit Brokers and Appointed Representatives of White Rose Finance Group Ltd (FRN: 630772) Authorised and Regulated by the Financial Conduct Authority. PLEASE MAKE BORROWING DECISIONS CAREFULLY, PROPERTY OR OTHER ASSETS OFFERED AS SECURITY MAY BE AT RISK IF YOU CANNOT KEEP UP WITH REPAYMENTS.