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. The invoice finance lender will release up to 90% of a business’s invoices straight away.
On payment of the invoice from their customers, the lender will release the final amount minus any fees and charges. There are different types of invoice financing options available to businesses depending on the situation and the level of control they require in collecting unpaid invoices.
Invoice financing companies offer a solution whereby payments are collected on your behalf managed by our team of expert credit controllers so you can focus on running your business. Our invoice finance solution is offered to businesses who want to maintain their own credit control processes, therefore this remains strictly confidential so your customers are unaware of our involvement.
Excellent, friendly and effective
11:37, July 30, 2021
09:28, July 18, 2021
Very supportive in setting up the facility
11:47, July 01, 2021
14:42, June 24, 2021
I cannot comment on the service it would be beneficial for small if you provided a flowchart showing the required documentation, i spend a fair bit of time with a very helpful manager to get all the paperwork together
14:27, June 18, 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.
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.
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.
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 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.
A professional approach from first contact to signing our contract, made what I thought would be a nightmare switching our factoring facility in to a breeze.
Managing Director, June 2021
#caringforpeoplenotprofitI was apprehensive at the start but thanks to Bethan support and professionalism I felt I was guided to what was best for my business. The reason I chose Hitachi from the other factoring companies because you stood out compared to the others
Director, April 2021
Waste Management broker firm
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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