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Invoice Financing – A Guide - 22/09/04

Is lack of cash flow holding your business back? Do you waste too much time chasing payment? Have you recently suffered a bad debt? If your business trades with other businesses on credit terms our services could help. We can provide finance to speed up your cash flow, save you the time you currently spend chasing payment, and protect you from the risk of bad debt. Here’s how Invoice Financing or Factoring works…

Step 1
You provide the goods/services to your customer and invoice them.

Step 2
You send the invoice details to your invoice financing provider (factoring provider), either electronically or by post.

Step 3
They make available up to 85% of the value by the next working day.

Step 4
Either your own credit controller or, if you use credit management services the lender may offer, carries out the collections procedure.

Step 5
When your customer pays, the balance of the invoice will also be made available.

Visit our cash flow section for a quote for your Invoice Financing needs.

Written By Simon Johnson
Xbridge Decision Finance

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