Goodman Corporate

Types of Invoice Finance

Confidential Invoice Discounting (CID) – Ideal for businesses with strong internal financial systems, CID provides working capital against your invoices without lender involvement in credit control. Funds may be released immediately, providing timely cash flow to support short-term needs.

Factoring – A flexible and cost-effective alternative to traditional bank loans or overdrafts, factoring offers instant access to cash flow without high interest rates or inflexible repayment terms. It’s an ideal solution for start-ups and growing businesses that need cash flow to fuel expansion.

Selective Invoice Finance – Selective finance allows you to factor specific invoices or a particular group of debtors rather than your entire sales ledger. With this option, also known as spot factoring, you can access cash from a single invoice anytime during its payment cycle.

Full Asset-Based Lending (ABL) – Asset-Based Lending leverages the value of various assets in your business, including receivables, inventory, plant & machinery, and property. ABL enables you to unlock cash tied up across multiple asset types, providing additional working capital when you need it.

How Does Invoice Finance Work?

The process of invoice finance typically involves the following steps:

Issuing Invoices: A business provides goods or services to its customers and issues invoices, detailing the amount due and the payment terms.

Applying for Invoice Finance: The business approaches an invoice finance provider to access funds against these invoices.

Advance Payment: The provider advances a percentage of the invoice value, usually between 70% and 90%, to the business. This provides immediate cash flow to the business.

Customer Payment: The customer eventually pays the invoice directly to the invoice finance provider.

Final Payment: Once the invoice is paid, the provider gives the remaining percentage to the business, minus any fees or charges for the service.

What Are The Benefits?

Invoice finance offers several advantages to businesses, including:

Improved Cash Flow: It provides immediate access to cash, helping businesses to meet their short-term liabilities and invest in growth opportunities.

Flexibility: Funding is directly linked to sales, meaning it can grow in line with the business.

Reduced Credit Risk: In some cases, invoice finance providers may offer credit protection against bad debts.

Focus on Core Business: By outsourcing the credit control function in factoring, businesses can focus on their core operations without worrying about chasing payments.

Enhanced Working Capital: It helps maintain a healthy level of working capital, enabling the business to negotiate better terms with suppliers or invest in new projects.

Invoice finance can be a valuable tool for businesses that face cash flow challenges due to delayed customer payments. By understanding how it works and its benefits, companies can make informed decisions about whether this financial solution is right for them.

Why Choose Us?

Experience

We have been trading for over 18 years, you are in experienced, professional hands.

We have handled transactions from as little as £25,000 through to £60,000,000 with more than £3 billion funded across UK SME's to date

Leaders

We are leaders in the commercial finance broker field within the UK.

Our Founder and Chair was the Chair of our National Trade Body for over 10 years, he knows what good looks like and leads from the front when it comes to all aspects of commercial finance.

Expert Guidance

Our expert guidance puts you and your business at the centre of what we do.

With our gold standard, “hand-held, and cradle to grave” service, you’ll be looked after right through from the initial inquiry until your funds are released.

Business Owners

We understand the struggles and priorities of running a business, we are business owners ourselves.

Why not let us deal with the paperwork and sourcing finance while you deal with your day-to-day operations?

Goodman Corporate Finance is a trading style of Goodman Corporate Consultancy Ltd. Company no 5364029.

Goodman Corporate Finance is an independent commercial finance brokerage and not a lender. We may receive payment from the finance provider should you decide to enter into an agreement with them. 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.

Invoice Finance Solutions

What Is Invoice Finance?

Types of Invoice Finance

How Does Invoice Finance Work?

What Are The Benefits?

Why Choose Us?

Experience

Leaders

Expert Guidance

Business Owners

Invoice Finance Solutions

What Is Invoice Finance?

Types of Invoice Finance

How Does Invoice Finance Work?

What Are The Benefits?

Why Choose Us?

Experience

Leaders

Expert Guidance

Business Owners

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