When the invoice is paid the borrowing is repaid and the balance of the invoice is made accessible to you. The finance company will then make up to 90 % of the gross invoice worth available to you and you are then able to draw down the funding you need. This invoice then needs to be given to the finance company. Once these products or services have been delivered you would give an invoice to the customer on credit terms. Business’s supply products and services to other businesses. How does invoice finance work?Įach individual finance product works a little differently but the premise remains the same. This could eliminate the anxiety associated with paying wages and suppliers making sure that your business runs smoothly without disruptions.īy utilising invoice finance and in particular factoring you can contract out the credit control to an expert organisation who would use consistent and structured methods to effectively obtain your overdue invoices.īoosted capital can aid your company to take advantage of profitable opportunities and may allow you to bargain with providers or obtain settlement discounts. This could release the cash bound in your overdue invoices supplying your business with useful working capital. How can invoice financing help your business? There are several ‘hybrid’ products but typically they will be a type of invoice discounting or factoring. These products drop under two main groups which are invoice factoring, also described as factoring, and invoice discounting. Invoice financing is normally an umbrella terms for the particular products that give this kind of finance. This is a type of finance that supplies financing against the debtor book of a company. We can find you a new facility or review your existing setups. Invoice finance can aid your business by enhancing capital enabling you to pay employees and providers without the added concern about consumers paying late.Īt Funding Solutions we specialise in sourcing and structuring suitable and cost effective invoice finance facilities for our clients.