Invoice finance is a finance facility provided by an invoice finance lender to help business owners leverage their unpaid invoices giving them an instant cash injection into the business. On payment of the invoice from the customer, the lender will release the final amount minus any fees and charges.
Invoice finance companies enable business owners to leverage their unpaid invoices and release up to 90% of the invoice value to boost their cash flow position.
There are different types of invoice finance options available to businesses depending on the situation and level of control they require in collecting their unpaid invoices. The main different types of invoice finance include: invoice factoring, invoice discounting, selective invoice discounting, debt factoring, accounts receivable factoring and spot factoring.
Invoice finance brokers offer an invoice funding solution, whereby payments are collected on your behalf managed by our team of expert credit controllers so you can focus on running your business.
Invoice finance companies offer businesses a solution to maintain their own credit control processes, which therefore remains strictly confidential so your customers are unaware of their involvement.
From early next year, we’ll be rebranding from Hitachi Capital Invoice Finance to NOVUNA Business Cash Flow with a fresh new look and feel. We’re really excited about our new brand and are positive you’re going to love it too! Find out more
Hitachi made the process of moving factoring facilities painless, bearing in mind we previously had our facility with the same provider since 1997. I cant fault Hitachi's staff and processes and we are delighted with the move.
10:45, October 21, 2021
Staff excellent all together professional
05:57, October 03, 2021
Great service so far
14:20, August 27, 2021
Game-changer for our transport business
16:29, August 07, 2021
Excellent customer support
11:53, August 06, 2021
Watch this quick 30 second video to see why you might want to choose invoice finance as an option for boosting your business growth by saving time on chasing invoices and receiving funds quickly.
We were the first provider to offer a one fee solution from 0.45% to 5% of your turnover depending on the size of your business. Our Inspired Cashflow product comes with
You can use our invoice calculator to give you an estimate of price and to understand how much cash you could release back in to your business by using Invoice Finance.
Invoice financing has become a popular solution for businesses due to its simplicity and providing funding to businesses quickly to improve their working capital. Waiting 30 - 90 days to receive payment of invoices or late invoice payments can put a financial strain on a business. To avoid running into cash flow problems, businesses can use an invoice financing provider to secure a percentage value of the unpaid invoice upfront. The lender will collect the money once the invoices have been settled along with a percentage fee.
A business raises invoices as they normally would and the invoice details are passed on to the invoice finance provider, who will then release a percentage of the value of the unpaid invoice upfront. With Hitachi Capital Invoice Finance, our revolutionary digital onboarding process allows businesses to be set up from first appointment to release of funds within 24 hours for smaller SMEs and up to 7 days for larger corporate businesses.
Depending on the invoice finance agreement entered, the business or the invoice finance provider will chase payment for the unpaid invoices. Once the invoice has been paid, the invoice finance provider will release the remaining balance minus a small fee for the service.
Invoice financing in the UK is where an invoice finance provider buys a business’s unpaid invoices for a fee. The provider will often provide a percentage value, usually up to 90%, of the invoice upfront in the form of a loan.
Once the client has paid the invoice, the lender will collect the balance in addition to a small fee. This means businesses can free up cash flow and don’t have to wait to receive payment for their goods or services. There are 2 main types of invoice finance: Invoice Factoring and Invoice Discounting.
UK based Small-to-Medium sized businesses (SMEs) with the following criteria should consider invoice finance brokers:
We cater for a wide range of sectors, including manufacturing, transport, professional services and recruitment.
Invoice finance provides an alternative finance solution to traditional forms of finance such as loans, lines of credit and overdrafts which often come with a multitude of eligibility requirements. The mechanics of providing funding for unpaid invoices to improve the cash flow of a business works the same for any size of business.
In order to be eligible for Hitachi Capital invoice Finance:
Invoice finance services are not currently regulated by the FCA (Financial Conduct Authority). To ensure integrity and a fair service is provided, UK Finance have an industry-wide code of conduct. The regulation of the invoice finance industry would most likely lead to an increase in the costs associated with invoice financing. Not being regulated ensures the costs of invoice financing are kept down for the consumers seeking to utilise invoice finance for an instant cash injection for their business.
Game-changer for our transport business
The nature of our business and the up-front costs involved, fuel, vehicles, wages etc, are crippling. Hitachi came out on top when we compared similar invoice-financing solutions.
We enjoy a 6 month ‘trial’ with an option to continue with a 3-month rolling contract. The admin and support staff are available, friendly and knowledgable. It makes set-up with accounting software and transport platforms a breeze.
We highly recommend.
Managing Director, July 2021
Great service so farFrom start to finish the process for transferring our invoice finance to Hitachi has been been brilliant, a smooth transition, great communication our link Person Jonathan Oakes has helped the process go through seamlessly, A great experience so far and a brilliant start to what we hope will be a long term partnership.
Director, August 2021
Want to know more about who should apply?
Our Invoice Finance Products
Invoice Finance Case Studies
Invoice Finance Blog
Help and support for SMEs with cashflow concerns or questions.
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