How does Invoice Finance Work?

How does Invoice Finance Work?


Practical Example

You are owed at 31st March £100,000
You have a current bank overdraft of £25,000
You invoice customers weekly £7,500

You want more working capital?

In our example an invoice finance company could potentially advance 80% of the amount you are owed – therefore 80% of £100,000 = £80,000 

From this of course you would probably have to clear your bank overdraft of £25,000 leaving you available funds of £55,000

Then at the end of week one when you raise an invoice for £7,500 you will have 80% of that available to you also. 

When your customers pay – now to the invoice finance company – the remaining 20% is made available

Sixty to One

So you can turn 60 days waiting for payment into 1 day – pretty good odds! 

reduce the amount of time customers pay
 

1. Invoiced Sales Per Month

2. Your Email Address