Invoice Factoring Solutions from Hitachi Capital Invoice Finance
Receive up to 85% of your invoice value within 24 hours...
- Invoice Factoring definition - 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 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?
- You supply goods and services to your customers.
- You send your customer the invoice made payable to Hitachi Capital Invoice Finance, and send a copy to us.
- 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.
- 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.
- The invoice clears and we give you the remaining balance.
- Our What is Invoice Factoring guide provides further information.
Advantages of Factoring
Want extra peace of mind?
Why not add credit protection to your facility? This ensures you're protected if any of your customers are unable to pay...
Already have an invoice factoring facility with an alternative provider? We can handle the whole process of switching for you, ensuring that your cashflow facility isn't affected at all. Download our switchers guide for more information
Speak to one of our UK advisors today on 0808 274 5092 to see how invoice factoring could help your business cashflow.
Speak to one of our UK advisors today on
0808 120 9868
Get in touch
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
For an informal discussion in regards to your cash flow needs please contact us on
0808 256 6442