Using Invoice Finance to Manage your Cash Flow

Cash Flow Calculator

Managing cash flow can be frustrating, time consuming, and an expensive problem for any business at the best of times. Now with many businesses struggling to meet working capital challenges due to Covid 19 – unexpected costs, late payments and international borders – the problem just got bigger. 

During growth, businesses are inevitably left short on working capital, and are forced to scramble for solutions by reshuffling budgets, chasing late payments, or cutting funding from somewhere else.

Fortunately, it doesn’t have to be that way. Invoice finance offers a way for businesses to release working capital that might otherwise remain tied up in invoices for long periods of time.

How it works 

Invoice finance is tailor-made for growing businesses and can help overcome the issues associated with trading on credit. 

By releasing up to 80% of an invoice’s value within just 24 hours of its issue, it effectively funds the cash flow gap between providing a service and getting paid, ensuring a healthy cash flow is maintained and suppliers, staff, HMRC and other bills can all be paid. 

Also, its flexible nature means that the amount businesses can access grows in line with turnover. So, the more invoices you raise, the more funding you will receive.

Traditional invoice finance provides funding against business’s entire sales ledger, but sometimes businesses need a more flexible ad hoc solution. 

What Accelerated Payments can offer  

Individual invoice finance, also known as selective invoice finance and similar to spot factoring, allows you to release cash from your invoices as and when you need to.

It’s for businesses who only want to release funds against high-value invoices, or those with long payment terms, that they would not necessarily have the ability to fulfil without access to funds. With current delays to delivery of goods due to government imposed restricted movements, this type of funding may be a good option for many businesses with delayed GRNs against POs.

Accelerated Payments can sit alongside your existing provider and take out the concentration of export risks that they may not necessarily want to cover with our Export Finance product. 

Simply send us the list of invoices or customers that you would like to accelerate payment against and we’ll let you know how we could help . 

For more information on Accelerated Payments’ invoice finance options contact us at [email protected]


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