Invoice Finance Loans in the UK provide cashflow for your business by releasing value tied-up in outstanding customer invoices. Factoring and invoice discounting are two major sources.
They refer to the same essential process: an asset-based working capital solution that allows businesses to get advances on cash they are due from customers, rather than waiting for those customers to pay. For many businesses, waiting for payment can cause real problems and prevent them from investing in growth. The various forms of invoice finance allow businesses to free up capital tied up in invoices with long remittance terms.
Factoring is the method used by SME firms to release funds immediately on the basis of invoices raised/receivables from the debtors. This is used by firms to get cash to support other business requirements or working capital for business.
Companies sell their invoices at a discount to get funds. This can be on either one large invoice or various smaller invoices. Konnect Financial helps companies to secure funds on single invoices – called spot factoring. This can be difficult when the business is a new start up with no proper accounts, but we can assist to secure funds within 1 day.
Time plays a key role in factoring. Large firms and organisations such as governments usually have specialised processes to deal with one aspect of factoring. They fulfil invoices in 90-120 days and compaies need funds quickly to give financial support to the business. This is where Konnect Financial can help you.
- Access to invoice value finance within 24 hours
- Handle your own credit control and sales ledger management or outsource them to our expert teams
- Remain in control of your funding at all times with our online management system
- Protect against customer insolvency with Bad Debt Protection
- Choose to use our confidential facilities to maintain relationships with your customers