Invoice Finance Solutions

What is Invoice Finance? How does it work?

Whether you’re looking to improve your cash flow or secure funds for expansion, invoice finance is a fantastic funding tool which supports businesses at any stage of the business lifecycle.

Invoice finance solutions allow you to access up to 90% of an outstanding invoice’s value within 24 hours of its issue, releasing funds that would have been tied up to pay suppliers, take advantage of new opportunities and reinvest in growth. The remainder is then forwarded once customers pay, less the funder’s fees.

There are several additional options with invoice finance that are designed to help businesses with different requirements.

As an award-winning and independent invoice finance broker, Hilton-Baird Financial Solutions has a proven track record of helping businesses secure the most suitable invoice finance and wider commercial finance facilities.

Why use invoice finance?

Invoice finance suits a wide range of funding requirements for businesses that trade on credit terms.

Having money tied up in unpaid invoices can restrict businesses of all sizes. By using invoice finance, it’s possible to access this cash to reinvest into the business, fulfil new orders, meet general running costs or secure discounts through early payment.

It is also an extremely flexible source of finance as facilities grow in line with the business. The more invoices you raise, the more funding that’s available, and certain facilities can also help to protect your business against late payment and bad debt.

How does invoice finance work?

Your business raises an invoice
The invoice finance company advances up to 90% of its value within 24 hours
Payment is collected from your customer by yourself or the funder, depending on the facility selected
Remainder of invoice value is forwarded, less the invoice finance facility fee

Invoice discounting vs factoring?

The two most common invoice finance solutions are invoice discounting and factoring. But which one is best for your business?

The primary difference between them is that, with factoring, the invoice finance company will provide a sales ledger management service to remove the burden from your business.

This makes factoring particularly useful for smaller businesses whose resource would be better spent on core activities.

Both products can additionally incorporate bad debt protection to safeguard your cash flow against late payment and protracted default.

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Which solution is best for you?

Invoice finance can be tailored to suit the individual needs of different businesses.

While factoring and invoice discounting provide funding against the entire sales ledger, it is also possible to fund single invoices to help with short-term cash flow requirements; for instance, invoices of a particularly high value or those supplied on longer-than-usual credit terms.

Read more about the different options or contact us on 0800 9774833 to discuss your requirements with a specialist invoice finance broker.

Invoice Factoring

Invoice factoring is an invoice finance facility that includes a dedicated sales ledger management service and can additionally incorporate bad debt protection. This is often the best solution for smaller businesses as, in addition to the funding element, it removes the burden of credit control.

Learn more about invoice factoring

Invoice Discounting

Invoice discounting on the other hand keeps the sales ledger management function in house, making it great for companies where this process is already running smoothly and when you would prefer to retain full control of your client relationships. Facilities are typically provided confidentially and can also include bad debt protection.

Learn more about invoice discounting

Single Invoice Factoring

Single invoice factoring offers the option to fund single invoices rather than the whole sales ledger. If your business has no long term funding requirements but raises high value invoices that may create a short-term cash flow headache, this funding option can be ideal.

Learn more about single invoice factoring

Payroll Finance

In addition to the funding element that ensures temporary workers’ wages are paid on time, payroll finance provides recruitment companies with back office and administrative support such as calculating complicated tax deductions, managing credit control functions and bad debt production.

Learn more about payroll finance

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Why use an invoice finance broker

Invoice finance is a great option for a lot of businesses due to the benefits it offers, but with the variation in facilities and number of different lenders on the market it can be hard to find the facility that’s right for you.

As an independent invoice finance broker, at Hilton-Baird Financial Solutions we specialise at reviewing businesses’ individual requirements and identifying the most appropriate funding facility and lender.

Whether you’re sure that invoice finance is right for you and aren’t sure which solution or provider is best, or you want to look at all your options for funding, we can help.

To discover the value we could add to your search for the right facility, call our team on 0800 9774833 or request a call back from one of our brokers at a time that suits you.

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