Is Invoice Finance suitable for you?

Your Customer Base

Remember, providers have an aversion to risk and companies with a handful of clients represent a massive gamble. The provider will also take a close look at the individual importance of each client. You may have 80 clients but one of them could be worth 40% of your turnover alone. If that client failed to pay, your whole company could be in jeopardy.

Credit Terms

You are also expected to have standard payment terms in place. Invoice finance providers want all your clients to have the same set of credit terms with 30 days being the industry standard. If you have a series of different terms for each client, this makes it difficult for the provider who will probably have an automated system for demand notices and reminders. In the modern era of financial services, you are unlikely to survive long if you continue to make individual customer agreements. The process of invoice discounting sees your company collect the invoices so individual agreements may not ruin your chances of successfully finding a provider. Invoice factoring on the other hand involves the provider collecting the invoices so uniform terms are vital.

These are terms most providers adhere to and there are also a number of factors that would immediately make you ineligible. For example, you can only receive invoice finance assistance through buyer to buyer sales, not sales to the public.

We can offer you financial solutions to help keep your cashflow healthy. Request a quote now to find out how much invoice finance can save you.

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