Invoice financing is an effective way for businesses to borrow money against the money owed to it, by its customers.

Also known as receivables financing, this form of finance maximises the value tied up in your debtor book and ideal for growing businesses, where the facility can grow with you.

Types of Invoice Finance

Invoice discounting

 

Confidential invoice discounting are facilities that are arranged confidentially to ensure that your customers are unaware that money is being advanced against invoices. The business remains responsible for credit control and collecting payments.

Money is usually advanced against the whole debtor book, with typically up to 90% of the value of outstanding invoices made available.

Factoring

 

As with invoice discounting, a lender will advance a percentage, typically around 90%, against outstanding invoices, but the lender will assume responsibility for credit control and collecting payments and so your customers will be aware that money is being advanced against their invoices.

The outsourced credit control can be beneficial for smaller businesses.

Selective Invoice Discounting

 

Rather than entering into an agreement for your entire debtor book, selective invoice finance enables a business to sell individual invoices and obtain money advanced against that. Depending on how much money a business would like to raise, this can be a cheaper option than a full confidential invoice discounting facility.

 

 

Bad debt protection

 

Bad debt protection can be added to the above facilities to provide peace of mind that invoices will be paid, even if your clients can’t. It can also enable a lender to lend a greater percentage against outstanding invoices.

Get in Touch

Head Office

Regus Castlemead

Lower Castle Street

Bristol, BS1 3AG

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Blaise Commercial Finance is a credit broker, not a lender. Blaise Commercial Finance Limited is a company registered in England and Wales (Company Number: 10799314) and trades under the name of Blaise Commercial Finance. Registered Address: Regus Castlemead, Lower Castle Street, Bristol, BS1 3AG. Blaise Commercial Finance Ltd is authorised and regulated by the Financial Conduct Authority (FRN: 813070). Blaise Commercial Finance Ltd ©. All Rights Reserved

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