Invoice Factoring and Finance Solutions from Hitachi Capital Invoice Finance
Receive up to 85% of your invoice value within 24 hours
What is Invoice Factoring?
Invoice Factoring allows you to release cash for your business using your invoices as collateral; therefore, instead of having to wait between 30-90 days for the funds they can be available within 24 hours. In addition, your credit control is handled by your Invoice Factoring provider.
In addition to the released funds, we also manage the collection of due payments, meaning you can focus on other areas of the business, as we will manage the credit control function for you.
As your business grows, so does the available funding. With invoice factoring you don’t need to negotiate new terms as your flexible funding line increases with your turnover.
Why do companies use Invoice Factoring?
There are a variety of reasons that businesses may choose invoice factoring as a funding solution, but the primary reason is that it’s a major boost to cash flow, as cash can be raised almost as soon as services or good are rendered. This makes everything from payroll to business growth much easier, both of which can be major concerns for SMEs. There are other options to funding, including loans, overdrafts and peer-to-peer lending, but few offer the same level of flexibility that factoring does, thanks to the scalable funding line.
In addition, smaller companies often find that it’s easier to manage their business while Hitachi Capital Invoice Finance is managing their credit control, because they’re less likely to have the full in-house resource to maintain it as effectively as our experts. In some ways, factoring is both a funding and business solution.
How does Invoice Factoring work?
1. You supply goods and services to your customers.
2. You send your customer the invoice made payable to Hitachi Capital Invoice Finance, and send a copy to us.
3. We will give you up to 85% of the invoice amount. At this stage, a service fee is deducted from your account as a percentage of your turnover.
4. The customer settles the invoice in full by making their payment direct to us. When the remaining balance is paid, a small finance fee is deducted from your account, charged as a percentage of the amount lent.
5. The invoice clears and we give you the remaining balance.
Our What is Invoice Factoring guide provides further information.
What are the Advantages of Factoring?
- Improved cash flow - release funds from raised invoices in up to 24 hours, allowing you to be more competitive in the long run
- Flexibility - with your funding line increasing at the same rate as your turnover meaning that you don’t need to renegotiate terms
- Save time- relieves your business of the burden of credit control, allowing you to concentrate on your core business areas.
- Bargaining Power- invoice factoring can help you to negotiate better terms with your suppliers
- Growth- grow your business at a much faster rate due to the flexible funding line
- Customer Service- benefit from our award-winning service
Speak to one of our UK advisors today on
0808 120 9868
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Hitachi Capital guide to invoice factoring
Download our latest invoice factoring guide to see how this could be the perfect cash flow solution for your business
Invoice Finance solutions from Hitachi Capital
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