INVOICE FINANCING

If you are an SME who needs to raise finance quickly, then invoice financing may be the right option for you.

If you are an SME who needs to raise finance quickly, then invoice financing may be the right option for you. It allows you to raise capital against unpaid invoices, generally up to 90- 95% of their value and provide working capital for your business, to be used for whatever you may need it for.

Invoice factoring works as a credit line facility on a rolling basis for your business allowing you to always have working capital in your business.

HOW WE CAN HELP

London FS are here to help you and provide you a seamless and simple process. As your broker it’s our job to take away the confusing options and terms and partner you up with the right invoice financing lender and product. We are here to provide you with an exceptional service, with transparency and honest advice. Invoice factoring is a fast option, where funds can be with you within 24 hours.

Benefits of factoring

  1. You can release up to 90/95% of your sales invoices – giving you a quick boost to your cashflow.
  2. Improve cashflow – business needs can change daily! Being flexible, adaptable in todays market is imperative. By creating the invoice factoring facility you always know you will have cash available.
  3. Outsourcing your credit control – you can reduce late invoice payments and free up more time working on your business, rather than in your business.
  4. No asset security required – our lenders will not ask for additional security in the form of assets, such as a residential or investment property. The lending is based wholly on your invoices generated.

Do you qualify for Invoice factoring?

If you generate invoices to other business for either services rendered or products sold then you will most likely qualify for Invoice factoring. We we always suggest that if you are unsure, give us a call or drop us an email and we can advise you accordingly.

Invoice financing is not sector specific. You can have a business in pretty much any industry, which means this facility is open to majority of UK SME’s.

Some businesses we have helped: wholesalers and retailers, recruitment agencies, construction companies, printers, manufacturing, farming, exporters, aerospace. Generally any business to business company can benefit form invoice financing, ranging form one single invoice to multiple invoices.

Criteria you will need to meet:

  1. You need to be a Limited Company, LLP or Sole Trader
  2. You need to have a minimum turnover of £100,000
  3. Your business works on selling to other businesses
  4. You are based in the UK

How does Invoice Financing/discounting work?

A factoring company is a specialist lender and is here to support UK SME’s get fast funding for their business. The process is very simple:
  1. We would help you agree an invoice finance (the invoice provider takes control of your credit control) or invoice discounting (you carry out credit control as normal) facility with a suited finance lender. This agreement will include what percentage of the invoice will be paid out to you.
  2. As a business you sell your services/products to another business, as you normally would. You would then invoice your clients as normal.
  3. You would send this / multiple invoices to the invoice finance lender.
  4. They would release a percentage of each invoice value sent, directly to you – with 24/48 hours, depending on the lender.
When the invoice is paid by your client/customer the invoice amount that was paid is paid back to the finance provider plus the pre-agreed service fee.

What fees are payable?

Our lenders are transparent and everything is clear and fully explained to you before anything is agreed. Expect there to be 2 fees involved:
  1. Discount Fee – The cost of borrowing. This is calculated as a percentage of the invoice value.
  2. Service Fee – Cost of taking out the facility. This is calculated as a percentage of your gross turnover.
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