What is Invoice Financing?
Invoice finance is a working capital facility which provides flexible finance that grows in line with a business’s own sales growth. In simple terms, invoice finance releases cash currently tied up in outstanding customer invoices (debtor/sales ledger), ideal for improving cashflow and enabling your business expansion plans.
How does it work?
- You invoice your customers for goods and services, and send details of the sales invoice to the invoice finance provider.
- On receipt of your invoice, the invoice finance provider will typically release up to 90% of its value within 24 hours of it being raised, minus a small fee.
- Your customer makes payment (directly to the business or to the finance provider depending on specific product e.g. factoring would be to invoice provider)
- The invoice finance provider releases the remaining 10% of the invoice value.
What are the benefits of invoice financing?
- Immediate access to cash tied up in trade debtors– up to 90% cash release.
- Finance that grows with you in line with your business’s sales growth. The sales ledger is used to secure access to funds, so as your business grows, so does the amount of funds that can be made available.
- Eligible debt includes domestic and export sales.
- Bad Debt Protection (option to protect your business against customer insolvency).
- Disclosed and Confidential facilities including option of full service credit control and sales ledger management tailored to suit a business.
- Funding of up to €5m with minimum facility period of 24 months to avail of the lower SBCI rates