Invoice Finance, Factoring & Discounting – What’s the Difference?
Well, essentially, they all have one main objective: Each type of product allows your company to raise cash against unpaid invoices, allowing you to focus on growing instead of waiting to be paid.
At a glance – Key features for all products
Flexibility
Beyond that the funding provided should be used in the running of your business, there are not normally restrictions on how you spend the money generated from invoice finance, giving your business flexibility in terms of how the proceeds are spent, be that on more inventory, staffing, or another element of the business’s activities.
Asset Protection
The option of asset protection for unpaid invoices serve as the main security for the facility, meaning generally less reliance on other forms of security, thus protecting your assets.
Quick Access
Although much like traditional bank loans, getting an invoice finance facility set up can take a bit of time, but once up and running, invoice financing can provide you up to 90% of your invoice values within 24 hours. For instance, it will continue to scale with your business so you will not need to organise new lending when you take on a significant new customer.
Scalability
As your business turnover grows, you can access more funds, thereby continually enhancing your business cash flow.
Improving cash flow
Many businesses report maintaining access to working capital as their main financial challenge, not overall profitability. As invoice finance can make funding available quickly and can scale with your business, invoice finance helps you manage your working capital and keep your cash flow healthy.
Efficiency
Our funders are experts in sales ledger management, and their knowledge and experience can help businesses focus on and control their invoicing process. Companies that provide invoice factoring function as credit controllers, freeing up more of your time to concentrate on your business growth.
Ready to apply for a facility tailored around your needs?
Give us a call & see what we could do for your business. Call 01634 386869
Who are First Business Finance?
First Business has over 50 years of experience in asset and technology finance and expertise built upon close relationships with customers, equipment suppliers and leading funding sources Across the UK, with a product range that includes everything from finance lease to hire purchase and invoice finance to business loans, we offer a dynamic and knowledgeable approach that transcends various market sectors We also have an exceptional service for Business Loans from First Business Finance.
Finally, thank you for visiting our invoice finance page. You can also visit our invoice financing services page to learn about coverage areas. Similarly, you can also read more about business loans and what we can offer by clicking here. In the same way, you can keep in touch with us via our social media.
