Number #1
in Essex
Get in Touch

Step-by-Step Guide to Invoice Financing

First 4 Commercial > Uncategorised > Step-by-Step Guide to Invoice Financing

Invoice financing is an attractive business funding option, especially for start-up or growing business, allowing for greater control over cashflow through utilisation of the value of any unpaid invoices. How does it work though?

1. The first step is where your business goes about daily life, selling products or services to customers and invoicing them. With invoice financing you can do so with complete peace of mind that you will not suffer cashflow problems as a result of late or missed payments and you can access funds very quickly if you wish.
2. Copies of each invoice are sent to your finance provider, and in return they will pay a percentage of the invoice value directly to you – a bespoke price can be agreed based on several factors relating to your business.
3. At this stage you can either choose to take control of chasing all unpaid invoices manually (invoice discounting – keeping control of contacts with your customers), or have the finance company take charge of this process (invoice factoring).
4. Once the invoice has been settled by the customer the remainder of the value on the invoice is paid back to you, with the agreed borrowing rate removed before payment.

If you would like to find out more information about invoice financing and the other asset based lending options that are open to you through First4Commercial, please feel free to get in touch with us today on 01277 620083 or info@first4commercial.com. We’ll be happy to put you in touch with the perfect lender to suit your business size, stature, and quantity of invoices to work with.

Leave a Reply