Get paid faster with our Invoice Finance factoring & discounting solutions
Borrow against outstanding invoices with Invoice Finance
One of the main reasons for the failure of businesses in the UK is not lack of profitability but lack of cash flow.
When you provide goods and services to other companies, especially the larger ones, you will often be required to provide lengthy credit terms in order to remain competitive. It’s not unheard of for large companies to demand up to 120 days credit before paying invoices. This places enormous pressure on cash flow and can threaten the long term viability of your business model.
You can have positive cash flow at all times and relief from the pressure of chasing debtors for payment leaving you free to concentrate on more productive tasks and to plan for future growth.
Invoice Finance from First Oak Capital provides payment of your invoices quickly, ensuring vital cash flow at all times, allowing your business to prosper and run more smoothly.
Invoice Finance is a loan provided against the security of an unpaid invoice, which allows your business to get paid immediately. Usually you will receive 80-90% on day one and the remaining 10-20%, less any interest charges once the invoice is paid.
Invoice Factoring is Invoice Finance with the additional benefit that the lender will also provide the credit control function and will issue the invoices and chase payment on your behalf. This leaves you and your staff free to focus on business growth, instead of chasing late-payments.
Invoice Discounting allows you to finance your invoices but you will still be responsible for credit control and chasing payment. The cost of doing this is less than Factoring and is more suitable to businesses which already have an accounts department or credit control function in place. With Invoice Discounting your customers do not have to be aware that you are financing their invoices.
This will depend on how involved you want to be in collecting payments and what you have time for. It will also come down to whether you want to finance all your invoices or just some of them. Speak to one of our advisors and we’ll help establish what’s important to you in order to identify the right Invoice Finance product and the most suitable lender providing the best solution.
Interest rates will be higher than secured asset finance and keep in mind that invoice finance is designed to defeat cash flow issues not replace sales and revenue.