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#Cash for outstanding invoices full#

You pay the loan back, as well as interest and fees.

#Cash for outstanding invoices full#

You collect the full amount from your customer.

The lender pays you a percentage of your customer's debt up front (usually between 75% and 90%).

That means you can access your cash almost immediately and put it back. Confidential invoice discountingĬonfidential invoice discounting works as follows: We can provide up to 90 of the value of your outstanding invoices within just 24 hours. This means your customers will know you're using invoice finance.

Give you the remaining balance – less interest and fees.įactoring is less confidential because the lender collects the full value of the invoice from your customers and chases payments if necessary.

Collect the full amount from your customer.

Pay you a percentage of the debt up front (usually between 75% and 90%).

Buy the debt owed to you by your customer.

The 2 main types of invoice finance are factoring and confidential invoice discounting. If you use invoice finance you can't use your invoices as security for other types of finance. getting a temporary overdraft on your bank account.borrowing against something you own or plan to buy (asset finance).If you don't have a lot of invoices, you might want to consider other ways of funding your business, such as: There can be exceptions to this, for example if you have one large customer the lender feels is reliable. You can't normally use invoice finance if you only have a small number of customers. You can't use invoice finance if you sell directly to the public or export to certain countries. Lenders will also want to see your business plan. your procedures to make sure invoices are paid (credit control).the type of invoices your business uses (for example invoices for long term contracts).What lenders checkīefore lending any money, lenders will check if your business is suitable for invoice finance. Invoice finance can also help businesses who are starting up and looking to grow.