Invoice Finance
Release the cash tied up in unpaid invoices, without waiting thirty, sixty or ninety days for customers to pay.
Money you have already earned, available now
Invoice finance turns your unpaid invoices into working capital. Instead of waiting for customers to pay, you draw funds against invoices as you raise them, usually within a day or two.
A funder advances most of the invoice value up front, typically up to 90%. When your customer pays, you receive the balance, less the funder’s charge. As your sales grow, the funding available grows with them.
It is not a loan in the usual sense. You are not borrowing against the future. You are releasing money your business is already owed, sooner.
In short
What it releases: typically up to 90% of each invoice
How fast: usually within a day or two of raising the invoice
What it costs: a funder’s charge on what you use
How it scales: the facility grows as your sales grow
Two forms: invoice discounting and invoice factoring
Secured against: the invoices themselves
Two ways to do it: discounting or factoring
There are two main forms of invoice finance. The difference comes down to who chases payment, and whether your customers know.
With invoice discounting, you keep control. You continue to run your own credit control and collect payment from customers as normal, and the arrangement stays confidential. Your customers need not know finance is in place. It suits established businesses with a solid credit control process.
With invoice factoring, the funder takes over. They manage your sales ledger and collect payment from your customers directly. That frees up your time, but it means your customers deal with the funder. It suits businesses that would rather hand collections over, or that do not have a dedicated credit control function.
Discounting usually costs less, because you do the collections. Factoring costs a little more because it includes that work. Which is right depends on how your business runs, and it is one of the first things we work out with you.
Why it often works better than a loan
For a growing business, a term loan can be a blunt instrument. It gives you a fixed lump sum, whether or not that matches what you need, and you repay it on a fixed schedule regardless of how trading goes.
Invoice finance flexes instead. The funding rises and falls with your sales, so it fits the shape of the business rather than fighting it. Win more work and raise more invoices, and more funding is available. When things are quieter, you draw less and pay less.
You are also drawing on money you have already earned, rather than taking on new debt against the future. For many growing businesses, that makes it both cheaper and easier to live with than an overdraft or a loan. Often it is the right first move to consider, before any loan, because it uses what the business already has.
How we help
We are whole-of-market, so we compare the whole invoice finance market rather than placing you with a single funder. Different funders suit different sectors and different ways of trading. The right one for a recruitment agency is rarely the right one for a manufacturer.
With more than twenty years arranging commercial finance, we know which funders suit which businesses, and we aim to place you with the right one first time. The facility is built around how your business actually trades, not forced into a standard template.
The process.
1. Tell us about your business and how you invoice.
2. We compare the market and match you with the right funder for your sector and size.
3. You receive an offer, structured around how you actually trade.
4. Your facility goes live, and the cash tied up in your invoices starts working.
In practice
Plum Products
Manufacturing · £4.35 million · Invoice and trade finance
A UK outdoor play equipment manufacturer with complex international supply chains needed a partner who understood both its working capital cycle and its global ambitions. We delivered during the pandemic, when most high street banks had stopped lending.
“Their support will allow us to advance to the next step of our journey as an international business.”
Paul Schaffer, Managing Director
Talk to us about your position
Every business invoices differently, so the right facility is the one built around yours. Tell us how you trade and what you need to release, and we will find the funder and the structure that fit.
Copyright - Goodman Corporate Consultancy Ltd
Goodman Corporate Finance is a trading style of Goodman Corporate Consultancy Ltd. Company no 5364029 Registered in England and Wales.
Registered office: 5 Prospect Place, Millennium Way, Pride Park, Derby, DE24 8HG.
Goodman Corporate Consultancy Limited is an FCA authorised Credit Broker and not a lender.
We typically receive a payment (s) or other benefits from the finance provider if you decide to enter into an agreement with them depending on the chosen provider and their commission or incentive models. Different lenders pay different amounts depending on different commission models. Further details of the commission model, calculation and amount will be disclosed to you throughout your customer journey.
Goodman Corporate Consultancy Ltd is Authorised and Regulated by the Financial Conduct Authority under number 733340.
Goodman Corporate Finance is registered with the ICO no. Z1828753.
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