Using Invoice Finance to get your business invoices paid quickly

Why you need Invoice Finance

Making sure you get paid on time is one of the critical activities in your business.  How can you pay your suppliers, your staff, even yourself if the money flowing into your business quick enough?  It can be hard to dedicate enough time to chasing money and bad debts when you're busy taking care of day-to-day business.  Some small business owners feel uncomfortable chasing customers for payment for fear of not getting any future business from them. 

Benefits of Invoice Finance

The benefits of using an invoice finance solution include:

• Releases cash into your business
• Provides up to 90% cash advances on the value of invoices
• Makes cash available within 24 hours of raising your invoice
• Improves cashflow
• Can enable you to buy more competitively from your suppliers as you can negotiate early payment discounts
• Offers flexible limits - the more you invoice the more funding is made available.
  
  

Invoice Finance explained

Invoice Finance offers a flexible alternative to get funds flowing into your business without having to wait for your customers to pay you.  It releases some of the value of your invoices as cash and so removes the need for you to make use of any business banking overdraft facilities you may have in place.

The most commonly used invoice finance solutions are invoice discounting and invoice factoring.

What is Invoice Factoring?

If you do not have the resources and information systems in place to efficiently collect payment for your business invoices you could consider invoice factoring. Invoice factoring is where the debt collection is taken over by a factoring services company.

The factoring services company will provide you with credit control and collection services for all your invoices. You send all your business invoices to the factor who will pay you between 80 and 90% of the invoice amount within an agreed time frame (can be as little as 24 hours). When your customer pays the invoice the factor will deduct their charges before making a final balancing payment to you. Bad debt provision is sometimes available but may incur additional charges.

Get an Invoice Finance quote from Lloyds TSB Commercial Finance

 

What is Invoice Discounting?

Invoice discounting is similar to invoice factoring except that you remain responsible for collecting payments from your customers. The invoice factoring service provider will charge a % of the invoice value as their fee. 

How to choose between invoice factoring and invoice discounting

With invoice discounting you maintain the relationship and contact with your customers. The main advantage is that this arrangement is confidential between you and the discounting service provider, but you still benefit from guaranteed payment of your invoices.

Get an invoice Finance quote from Lloyds TSB Commercial Finance

Using Invoice Finance to get your business invoices paid quickly

Why you need Invoice Finance

Making sure you get paid on time is one of the critical activities in your business.  How can you pay your suppliers, your staff, even yourself if the money flowing into your business quick enough?  It can be hard to dedicate enough time to chasing money and bad debts when you're busy taking care of day-to-day business.  Some small business owners feel uncomfortable chasing customers for payment for fear of not getting any future business from them. 

Benefits of Invoice Finance

The benefits of using an invoice finance solution include:

• Releases cash into your business
• Provides up to 90% cash advances on the value of invoices
• Makes cash available within 24 hours of raising your invoice
• Improves cashflow
• Can enable you to buy more competitively from your suppliers as you can negotiate early payment discounts
• Offers flexible limits - the more you invoice the more funding is made available.
  
  

Invoice Finance explained

Invoice Finance offers a flexible alternative to get funds flowing into your business without having to wait for your customers to pay you.  It releases some of the value of your invoices as cash and so removes the need for you to make use of any business banking overdraft facilities you may have in place.

The most commonly used invoice finance solutions are invoice discounting and invoice factoring.

What is Invoice Factoring?

If you do not have the resources and information systems in place to efficiently collect payment for your business invoices you could consider invoice factoring. Invoice factoring is where the debt collection is taken over by a factoring services company.

The factoring services company will provide you with credit control and collection services for all your invoices. You send all your business invoices to the factor who will pay you between 80 and 90% of the invoice amount within an agreed time frame (can be as little as 24 hours). When your customer pays the invoice the factor will deduct their charges before making a final balancing payment to you. Bad debt provision is sometimes available but may incur additional charges.

Get an Invoice Finance quote from Lloyds TSB Commercial Finance

 

What is Invoice Discounting?

Invoice discounting is similar to invoice factoring except that you remain responsible for collecting payments from your customers. The invoice factoring service provider will charge a % of the invoice value as their fee. 

How to choose between invoice factoring and invoice discounting

With invoice discounting you maintain the relationship and contact with your customers. The main advantage is that this arrangement is confidential between you and the discounting service provider, but you still benefit from guaranteed payment of your invoices.

Get an invoice Finance quote from Lloyds TSB Commercial Finance