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Invoice Finance

Invoice Finance (also known as factoring or invoice discounting) can release up to 90% of your sales ledger immediately. This gives your company an instant cash injection, followed by ongoing cashflow from any subsequent invoices you raise.

When invoices are assigned to an invoice finance company, they generate up to 90% of their gross value. These funds are made available to you and you decide how much to borrow; this flexible facility means that interest is only paid on the amounts you decide to use. When your customer pays, the additional 10% is also made available, less the invoice finance company’s fees.

Invoice finance generates cashflow in a quick, simple way and, since the debts are ultimately paid by your customers, the finance ‘repays itself’, unlike a conventional overdraft. Also, because the lender has the security of your invoices, they are much more likely to lend in circumstances where a bank considering overdrafts or loans may not.

Amongst additional benefits, you can request that the invoice finance company performs credit control on your behalf. The facilities can be confidential and you can even choose to have your customers insured against bad debts, a feature worthy of consideration in the current economic climate.

At Aspect Commercial Finance, we earn an introductory commission from the invoice finance provider you select. This means that our services are completely free to you.