Unlock Cash When Money Is Owed To You
Invoice finance is designed specifically for businesses that have to wait for payment upon completion of their work. If your business offers payment terms to your customers, also known as trade credit, you won’t have access to the cash until your client has settled the invoice. That’s where invoice finance can help; it will give you access to the funds before your customer has paid.
Invoice finance effectively transfers the delay between the invoice being sent and the money getting paid on to your lender. With the lender advancing you most of the invoice value straight away, invoice finance lets you get on with what you do best; running your business.
Key Features Of Our Invoice Finance Solutions Include:
Up to 90% Of Invoice Value Paid
With invoice financing you can receive up to 90% of money owed before it’s paid. Broadly speaking, by using invoice finance, you’ll receive most of the money almost immediately and then the remainder (less the lenders fee) once the invoice is settled.
You Receive The Money Fast
We understand how frustrating it can be to await payment for work you’ve already completed. It’s even worse if this delay means you can’t afford materials etc for a new project that you’re about to start. Orchard Business Finance work with specialist lenders who offer funding against invoices. Normally you’ll receive the bulk of an owed invoice within 24 hours of acceptance.
Thanks to our well-developed network of lenders we can source the best invoice finance deals from across the UK market. Our team will work with you to identify the best invoice finance solutions for your exact needs. We’ll then go out to our carefully selected lenders to secure the best deal for you.
Benefits To Your Business Operations
Improved cashflow can be one of the greatest benefits of invoice financing. If your business has long payment terms with customers, you could find yourself waiting for payment before being able to afford to take on a new project. Invoice finance can help solve this tricky situation.
Also, with certain types of invoice finance, you pass your credit control responsibilities on to the lender. This can be really useful if you don’t have the time to carry out credit control for your business in-house.
Are There Different Types Of Invoice Finance?
Yes, there are three main types of invoice finance. Depending on your business’s circumstances some may be better options than others. Our team, here at Orchard Business Finance, can point you in the right direction and provide further advice. Here’s a brief summary of the three different types of invoice finance:
This is the form of invoice finance where the lender is most closely involved. Typically, customer payments will go into the factoring company’s bank account and they will handle all credit control. Some business owners like outsourcing their credit control in this way; it frees up time for them to concentrate on their business. It’s worth noting that your customers will know that you use a finance provider when you use an invoice factoring company. That said, as mentioned, there are benefits to this too.
This is the most straightforward form of invoice finance currently available. If you use invoice discounting your business will still be in charge of credit control. It’ll be your responsibility to chase customers if they don’t pay on time. That said, the benefit of using invoice discounting is that your customers won’t know that you’re using a finance provider at all, meaning you have ultimate control of your internal financial processes.
Selective Invoice Finance
This option is available to allow for even greater flexibility. Selective invoice financing allows you to decide upon the customer accounts that will benefit the most from an invoice finance arrangement. It allows you to choose the invoices you’d like to finance, whilst maintaining complete control of the invoices you don’t want to finance. Selective invoice finance can prove very useful if, for example, you have customers using different services with alternative payment plans.