What is Select Invoice Finance?
Selective Invoice Finance is a simple and effective way of quickly accessing up to 100%of the value of selected invoices, usually within 24-hours of them being issued, so you can access cash at the point you sell products and services rather than waiting between 30-90 days for your customers to pay. Unlike traditional invoice finance agreements this funding is available without the need to enter into any long-term contract; and is particularly suited to SMEs.
How does it work?
Once you have set up the agreement, you are free to choose one or multiple invoices that you would like to finance, and receive up to 100% of the invoice(s) value.
When your customer pays, the lender deducts a pre-agreed fee and you receive the remaining balance. If your customer pays early (before the invoice due date), you will only be charged a fixed daily rate.
What are the benefits?
- They won’t tie you in: You can use this facility once or as many times as you like, these lenders won’t make you sign up to a 12 month contract ·
- Simple transparent cost: one pre-agreed daily rate, with no hidden or ongoing fees. Lenders want you to be really clear and comfortable with what your costs will be.
- Only pay when you are using the facility: lenders only apply a fee for the period the funds are in use, for example; if you think your customer is going to pay you in a month’s time and they actually pay you in 7 days, then you will only get charged for those 7 days.
- Select Invoice Finance can be used alongside other business finance facilities: If you have a longer term cash flow solution in place and just need to use this type of facility for short term cash flow support, lenders will happily work alongside other providers..
How can we help you?
The Finance Exchange is an industry leading ABL advisory business, where our expertise is purely focused on aligning your specific business and finance requirements with the right lenders and then helping you to achieve the right terms and facility structures for your business. Given our ‘analytical’ and ‘attention to detail’ approach, we are used to working with management teams and ‘taking the strain.’ with prospective lenders, whilst allowing you to focus on your business.
If you would like our support or have any questions, why not contact us? We are here to help!