Funds are needed from time to time so that a company's cash flow can be maintained. To ensure smooth operations and other activities, including profitability, they need substantial working capital. To maintain a healthy cash flow within your company, you may want to consider a loan if your business is having a hard time. For that purpose, Invoice Financing provides you with a very flexible option. The benefits of invoice financing have increased its popularity despite the fact that there are different options.
Having your invoices converted into cash allows you to avoid the obstacles of slow-moving debtors and have a more effective cash-flow system. For invoice financing UK, you can consider Finance Hub as your first choice. Using our Factoring and Invoice Discounting services, you can grow or sustain your business with working capital, plus you'll be able to offer credit terms to your clients. Our goal is to help you grow your business by unlocking cash flow.
What is Invoice Financing?
Basically, invoice financing is a kind of short-term debt that uses unpaid invoices as security for funding, giving you access to a percentage of the invoice's value faster. In other words, a business sells an invoice to a third party after delivering a good or providing a service. Businesses receive up to 95% of the value of invoiced sales within 24 hours through this financing type. Several sectors and industries use invoice financing on a regular basis, such as construction, retail, distribution, printing, transportation, and consumer goods.
What Are Different Types of Invoice Financing?
When it comes to types of invoice financing UK, there are various types available in the market. These types include invoice factoring, invoice discounting, selective invoice discounting, debt factoring, accounts receivable factoring, and invoice discounting. All these types give businesses the freedom to choose how much control they have over their finances and provide the solution they need. However, the most common types of invoice financing are invoice factoring and invoice discounting.
Here is the detail of these types.
- Invoice Factoring
Lenders collect payment from your customer under this invoice financing type. While this can help you work less, it also has the potential to affect the relationship you have with your customers, not all the time. It is clear that invoice factoring is the best solution if you don't have the resources to make the collection yourself.
- Invoice Discounting
Among the many forms of invoice financing UK, invoice discounting is the most straightforward. Since businesses are required to do it on their own, it can be more time-consuming. However, it is a much better option for businesses that prefer to interact directly with their customers. If your business is well-established and you have enough resources for payment collection, invoice discounting is a good option.
Award-winning Advantages of Invoice Financing UK?
Many small and medium-sized businesses use invoice financing as a reliable source of working capital. The main reason why businesses choose it is the convenience of getting access to cash quickly.
The following are some other advantages of invoice financing in the UK.
Quick & Convenient
When you use invoice financing, you will get the competitive advantage of same-day funding from platforms such as Finance Hub, instead of waiting months for approval. Additionally, bank financing options often have very strict requirements and require a lot of paperwork, which makes loan approvals very complex and time-consuming. When invoice factoring is involved, the application process is much faster. After the verification has been completed, you will receive the cash advance in about a week or even 24 hours.
For any business to grow, cash must be available to pay current expenses as well as expenditures for future projects. The ability to purchase additional stock and clear other dues with invoice financing will allow you to increase your company's efficiency and production. With an expanding business, you have a better chance of staying ahead of your competitors. Because of this, invoice financing UK is the best choice as it speeds up cash flow so that you can make the most of growth opportunities.
Maximize Your Revenue
You will be able to go after new business differently when you have access to additional funding. There will be no more feeling that you are pressing both the gas and brake pedals at the same time. With your company being able to take on new contracts and work without worrying about where the money will come from, you can increase productivity and profitability. Offering customers more flexible payment terms can also help you increase sales. Hence the upside of invoice financing UK is more cash flow control and access to your cash.
In comparison with other financing methods, invoice financing costs are nothing as compared to other loans. The standard fee range for a single invoice is usually 0.5%-5%, with no interest added. Because of this, many large organizations prefer to use invoice financing, since it acts like a low-interest loan without the difficulty of proving eligibility. Keeping this in mind, the larger the invoice value is, the larger the fee will be. We at Finance Hub are glad to announce that we don't charge extravagant fees.
Easily Apply Invoice Financing in the UK At Finance Hub
It can be difficult to decide what kind of financing your business needs. Fortunately, we can guide you. We offer comprehensive invoice finance solutions tailored to your specific needs, working with a variety of businesses, from startups to large, established corporations. Our facilities will be tailored to meet the needs of your business, so your agreement will be customized according to that need. The purpose of our support is to enable you to overcome financial obstacles and get the growth you deserve. Please fill out a few details about your business and we will get in touch with you. Get in touch with us if you need more details on invoice financing UK and invoice financing costs.