Invoice Finance helps you unlock the money tied up in your unpaid invoices so you can do your thing and keep your business’s cashflow positive.
Here’s an example of how Invoice Finance can work for you and your business.
Danielle is self-employed. She always sends her invoices at the end of each project. Her customers have payment terms around 30 to 60 days, meaning she may have to wait a month or two to get paid.
Danielle's Finance Pot
When Danielle signed up, we set her Finance Pot limit at £15,000. This is the total value of invoices Danielle can offer to sell to us. Danielle’s under no obligation to use her Pot, but she finds it reassuring to know it’s there if she needs it.
She’s just finished Job 1 and sends a £1,000 invoice to her trusted customer, with payment due in 30 days. But she needs £500 for Job 2, which her customer is asking for in 10 days. She doesn't have the cash to hand, but knows £1,000 is coming in.
Danielle can use Invoice Finance to 'unlock' Job 1's invoice straight away so that she has the cash in hand to take on Job 2. Her trusted customer can sometimes be a little late, so she chooses to pay the Direct Debit in 33 days’ time, just in case. Minutes later, £984.49 lands in her account, and her Pot is reduced to £14,000.
That's Job 1's invoice (£1,000) minus our fee* (£15.51 in this example). On day 30, her trusted customer pays the £1,000 invoice. On day 33, we collect payment of the full invoice amount (£1,000) through the Direct Debit Danielle set up. Once the £1,000 payment for Job 1’s invoice has been processed, her Pot returns to £15,000.
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