This type of finance is used by businesses which have a lot of outstanding invoices with long payment terms (often up to 90 days) and need a cash injection.
Invoice Finance helps companies to alleviate cashflow problems, get paid for work they have completed and focus on other parts of their business.
The finance provider will advance you a percentage of the value of invoices owed to you within a few days. Once the invoices have been paid, you’ll receive the remaining value minus the lender’s fees.
Depending on which provider you choose, you may have to chase the invoices yourself or they may do it on your behalf.
There are different types of Invoice Finance available, such as invoice factoring and invoice discounting, so it’s important you do your research and work with a trusted adviser to find the best solution for your needs.