Invoice funding differs to invoice factoring in that, rather than selling your invoices to a factoring company such as ours, you actually retain ownership of the invoices you have issued to your customers. Instead of selling the invoices outright and receiving a percentage of their worth, you receive a cash advance against the value of your invoices. You then repay this amount back to the alternative funding company within an agreed timeframe.
This kind of invoice financing is a popular option amongst businesses of all sizes, but it can be particularly helpful to small businesses that don’t have the ability, or the luxury, of accessing traditional funding routes to alleviate their short-term cash flow problems.
If you sell on credit to other businesses with payment terms ranging from 30 to 90 days, invoice funding could be the answer to your problems. By releasing future funds tied up in your invoicing system, you can generate the much-needed working capital your business needs to keep your business going.
Invoice funding doesn’t just stop there; this facility will grow in line with your business. Once you’ve used invoice funding, you’ll have access to the facility on an ongoing basis, so that you can grow and invest in your business.
Invoice funding allows you to retain full control of your invoicing while receiving the cash you need. We’ll give you the remaining balance of the invoice value less our charges. As with invoice factoring, invoice funding allows you to fund the amount of invoices that will be most beneficial for your company’s finances, and you’ll benefit from having the money you need within 24 hours of your application being approved.
Why should I choose invoice funding over invoice factoring?
- Invoice funding allows you to retain full control over your invoices and your financial systems, whereas invoice factoring means that you’ll be selling your invoices to the factoring company.
- Invoice funding is the preferred option for larger companies.
- It’s the perfect choice for companies that don’t want their customers to know of our involvement.
- Invoice funding may be the best option if you already have financial staff and rigorous credit control procedures in place.
- Both invoice funding and invoice factoring enables you to receive the funds you need within 24 hours of approval, plus you’re in complete control of how many or how few invoices you choose to use.
- Both options are available without the need for your business to have an excellent credit rating.
Is invoice funding the best option for you? Contact an advisor now
If you’d like to know more about how our invoice funding could help your business, simply pick up the phone, call us and speak to one of our advisors here at American Prudential Capital. We’re one of the top ranked alternative funding finance companies in the country, and we’ve years