Running a business isn’t easy. Admin sucks up time. Time is money. And you need money in your account to run your business. Sometimes, there can be gaps between when your invoices are due to come in and when money needs to go out.
When this happens, things can get pretty stressful – it’s your money, but it’s ‘locked’ in an invoice that won’t be paid for weeks. And getting finance isn’t always easy. So we made Invoice Finance. You can now ‘unlock’ the money in your unpaid invoices when you need to, and keep your cashflow positive.
Invoice Finance? What’s that?
It’s not a loan. It’s a type of financing known as ‘invoice discounting’. Simply put, you offer to sell the debt due under an invoice to us, and if we agree, we buy the debt from you. You still deal with your customer, and are in charge of getting them to pay you on our behalf.
How does it work?
It’s simple – take a photo of an invoice you’ve issued, check the details and send it to us. Then, depending on the invoice’s due date, agree a date to pay us (up to 15 days beyond the payment term on your invoice). We’ll send the money to you, minus our fee (we’ll run through this shortly). Then, on the day we’ve agreed, we collect the invoice amount by Direct Debit.
You can finance as many invoices as you like, as long as you don’t exceed the amount available in your Invoice Finance Pot and you pay us on the agreed date each time.
An Invoice Finance Pot? What’s that?
It’s the limit we agree you can finance invoices up to. You apply by letting us know the details of your business, answer some questions, and agree to a ‘soft’ credit check. We’ll then make a decision and quickly send you a response.
You need an Invoice Finance Pot before you can use Invoice Finance. There are no costs to apply for one, and you’re not obliged to use it.
How much will it cost me?
You’ll pay a one-off fee on each invoice you finance. This is calculated on the value of the invoice, how long you want to finance it for, and a daily fee based on you and your business’s circumstances. We then deduct this fee from the total amount of the invoice and send you the rest.
What else do I need to know?
For example, if you have a £1,000 invoice due in 30 days, it could look like this:
Example based on a personal daily fee* of 0.047%.
*Your personal daily fee is based on your circumstances, so may be different. The fee shown here is for illustration purposes only.
Sometimes my customers pay a little late, what can I do?
We know some customers may pay a couple days later than an invoice’s due date. That’s why we let you choose to pay us up to 15 days after the invoice’s due date. This should give enough time for your customer to pay you, and for you to then pay us.
Invoice Finance is confidential, which means we will not contact your customer directly without informing you first (except in certain circumstances, like if you don’t pay us).
The duration of finance must be linked to the invoice you are selling to us, and the sale must be for the whole invoice amount.
If you’d like to know more, take a look at our FAQs
If you have something you'd like to ask, drop us a line and we'll be happy to help