WHAT IS INVOICE FINANCE?

EVERYTHING YOU NEED TO KNOW

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We understand that invoice finance or factoring may seem confusing.

Please read through our Frequently Asked Questions for further information.

What is Invoice Finance?

Invoice Finance a well known business funding solution and is the sale of a business’s unpaid invoices to an Invoice Funder for a payment of up to 100% of the value of the invoices.

This helps the business receive instant access to the cash they’ve earned, preventing the wait of 30 to 90 days for debtors to pay invoices.

Is my business suited to Invoice Finance?

How do you know if your business is suited to Invoice Finance?

  • Ideally they will have owners who manage their operations (e.g. Limited, Partnerships, Sole Traders)
  • Raise invoices to other companies
  • Businesses will provide a product or a service
  • Demonstrate goods and/or services have been fully delivered

See our sectors page for more information on the types of businesses which can benefit from invoice financing.  If you are unsure, ask our team at Go-Factor at Letstalk@Go-Factor.co.uk who are waiting to help you.

How many years of credit do I need to have to get Invoice Finance?

An extensive credit history is not required to be eligible for Invoice Finance. This is unlike the common requirements of many other forms of external funding, such as bank loans and business overdrafts, which tend to focus on perceived worth in the Balance Sheet or insist on taking charges over the marital home in order to provide a facility.

Your sales ledger will be used to determine whether you can access invoice finance. This means those businesses which may have been turned down for bank funding due to a lack of credit history are often able to get funding through invoice finance.

What should my yearly turnover be to access Invoice Finance?

We are able to fund businesses ranging from complete new-starts to established businesses with sales of up to £50,000 per annum.

How much money could I release using Invoice Finance?

You can release up to 100% of your the value of your invoice.

What is the difference between Invoice Factoring and Invoice Discounting?

Invoice Factoring, as well as providing cash in exchange for invoices, also provides your business with a credit control function; we load your sales ledger and customers onto our system in order to ‘mirror’ your own records. Our experienced and professional team consequently take the responsibility for securing the payments from your valuable customers, giving you the peace of mind that your customers are being dealt with by an industry-leading credit control team. We send statements and Remittance Advices each month and can tailor a chasing letter cycle to your requirements – in the age of ever-increasing costs of postage, this can be a valuable cost saving to your business.

With Invoice Discounting, we fund the total outstanding value of the sales ledger. We don’t include a specialist credit control function or send letters and statements, which means your own credit control team act as normal and continue chasing payments.

We ask for various standard reports at the end of each month and you are required to undertake a simple reconciliation exercise to ensure that our sales ledgers match.

Won’t Invoice Factoring impact my customer relationships?

In a word; no. 

You will be provided with a dedicated credit controller who, in effect, becomes an extension of your own team; chasing and collecting payment using the methods you already use and ensuring your valuable customer relationships are maintained. 

How is Invoice Finance a better choice than bank funding?

Invoice Finance solutions provide a much more flexible funding solution than bank funding.

Providing certainty of contract (i.e. not repayable on demand) and increased funding linked to sales, not the historic financial performance, will be a big plus to many businesses.

Why should I choose Go-Factor over other Invoice Financiers?

Go-Factor prides itself on its ability to provide flexible funding solutions. We strive to offer the best options to your business, selecting the right provider for your needs.

We work closely with our hand-picked partners built up of the UK’s market leading providers who adopt a commercial approach to underwriting, putting you at the forefront of the decision-making process and we make each decision based on the individual merits of each and every business.

We understand business and we passionate about helping your business succeed and grow.

What’s the process involved in Go-Factor making a decision to fund a business?

Its a simple process:

  1. You speak to Go-Factor to discuss funding requirements. Go-Factor immediately approach funding partners to get the best deal.
  2. Funding partners discuss your needs with you and send proposal and terms.
  3. Terms discussed and agreed with funding partner.
  4. You invoice your client for the goods/services you have provided. Send a copy to your chosen funding partner.
  5. Funding partner quickly pays you up to 100% of invoice value (including VAT). Your Accounts chase invoice payment (or funding partner if you want them to chase payment on your behalf using the invoice discounting process).
  6. Customer pays invoice to funding partner.   Funding partner then immediately transfers remaining balance to you.

How quick is the decision-making process?

We aim to respond to your submitted enquiry within 2 hours.

Once we’ve spoken with you, your funding solutions can be agreed in 4 hours.

Upon completion of terms and assuming everything goes smoothly, you can have funding in place within 24 hours.

If you still have questions and you would like further information please feel free to contact us.

Liverpool – 0151 347 0977 | Manchester – 0161 739 0377 | London – 0203 500 9377

NACFB Logo : Invoice factoring & Asset Finance from Go-Factor