Your questions answered

What is Invoice Finance?

People often ask us “what is invoice finance?” and there’s good reason for that. Invoice finance is actually a generic term to describe two key products in the invoice finance market which are invoice factoring and invoice discounting.

What is invoice finance factoring?
Invoice finance factoring provides a cash advance against unpaid sales invoices. For more information see our invoice factoring section here. For more information see our invoice discounting section here.

What is invoice finance discounting?
Invoice finance discounting is effectively a confidential version of invoice factoring where your customers are unaware of the facility. For more information see our invoice discounting section here.

What is invoice finance secured against?
Invoice finance is secured against your debtors ledger and any additional security is normally not required.

What is invoice finance cash advance?
Invoice finance provides an immediate cash advance against your unpaid sales invoices of up to 90% of their value.

What is invoice finance debt protection?
Invoice finance debt protection is an optional facility that provides insurance protection against bad debts.

What is invoice finance credit control?
Invoice finance credit control is usually provided by the funder with invoice factoring and by the borrower with invoice discounting.

What is invoice finance cash flow?
Invoice finance cash flow is the immediate boost to cash flow when the facility is introduced and whenever a new invoice is raised.

What is invoice finance for MBO’s?
Invoice finance can be great way of successfully funding a Management Buy Out.

What is invoice finance overseas trade?
Export factoring is a facility for businesses involved in exporting that releases cash tied up in outstanding domestic and overseas invoices

What is invoice finance for new businesses?
There’s a range of invoice finance facilities designed specifically to assist new businesses with their cash flow.

What is invoice finance trade finance?
This facility provides importers with upfront funding for confirmed orders.

---------------------------------------------

What is Invoice Factoring?

Although it is now a well-established and popular method of finance we often get asked the question “what is invoice factoring?”

Invoice factoring is a very effective method of funding working capital that advances immediate cash against your unpaid sales invoices. The amount of cash advance can be up to 90% of the value of the unpaid sales invoices.

What is invoice factoring best for?
Invoice factoring is best for funding working capital as it is a simple but effective way to boost cash flow. It also has the benefit of growing as your sales grow without the need to re-negotiate facility levels.

What is invoice factoring fast track?
Invoice factoring fast track is the processing service for businesses where timescales are tight. Under the fast track system facilities can be available within days.

What is invoice factoring secured against?
Invoice factoring is secured against your outstanding debtors ledger and any additional security is normally not required.

What is invoice factoring cash advance?
Invoice factoring provides immediate funds of up to 90% of your unpaid sales invoices.

What is invoice factoring ledger management?
With invoice factoring the management and control of the sales ledger is usually undertaken by the lender, although in some cases this can be an option.

What is invoice factoring bad debt protection?
Invoice factoring bad debt protection is an important option with invoice factoring which many firms take to protect themselves against the risks of bad debt.

What is invoice factoring for new start-ups?
Specific invoice factoring facilities are available for new business start-ups.

What is invoice factoring assignment?
With invoice factoring your sales ledger is legally assigned to the lender who uses it as security for the sums advanced.

What is invoice factoring for export?
Export factoring is a facility for businesses involved in exporting that releases cash tied up in outstanding domestic and overseas invoices

What is invoice factoring confidential?
Making the facility a confidential one changes the service to invoice discounting where your customer is unaware that the facility exists. Find out more on invoice discounting here.

---------------------------------------------

What is Invoice Discounting?

Invoice discounting is probably the least well known of the invoice finance products and so the question “what is invoice discounting?” is not uncommon.

Invoice discounting advances funds against your total sales ledger and is classed as a confidential facility which means your customers are unaware that the facility exists. The control and management of the sales ledger normally remains with the business.

What is invoice discounting used for?
Invoice discounting is used for funding working capital by businesses with a larger turnover (than the invoice factoring equivalent) and have recognised procedures for debtor management and collection.

What is invoice discounting fast track?
Invoice discounting fast track will ensure your facility application is processed in the shortest time possible and can make funds available within days.

What is invoice discounting finance?
Invoice discounting finance is the amount of funding advanced against your sales ledger and can be up to 90% of the sales ledger.

What is invoice discounting cash advance?
Invoice discounting cash advance is the amount of finance advanced against your sales ledger.

What is invoice discounting credit check?
Invoice discounting credit check is a service provided by the lender to carry out credit checks on your existing and new customers to assess them for credit risk.

What is invoice discounting ledger control?
Invoice discounting ledger control is your own sales ledger control management function as this is normally retained as the responsibility of the business.

What is invoice discounting debt protection?
Invoice discounting debt protection is an optional feature providing protection against the risk of bad debt from your sales customers.

What is invoice discounting for MBO’s
Invoice discounting is a recognised method to provide funds for Management Buy Outs.

What is invoice discounting for export?
Export factoring can be arranged as part of an invoice discounting facility for businesses involved in exporting that will release cash tied up in outstanding domestic and overseas invoices

What is confidential invoice discounting?
Invoice discounting is classed as a confidential facility because your customers are unaware that the facility exists.