Invoice financing enables a business to borrow money against the amounts due from customers. Invoice financing can improve business cash flow, pay employees and creditors.

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This is a useful tool to boost short term cash flow. You can release the capital required far quicker than if you had to wait until your customers paid their balances in full.

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Businesses pay a percentage of the invoice amount to the lender as a fee for borrowing the money. Invoice financing can solve problems associated with customers taking a long time to pay as well as difficulties obtaining other types of business credit.

 

Fees are usually charged on a weekly or monthly basis, for releasing the cash to you.

 

Factoring charges are worked out on a percentage basis of the invoice value, typically ranging between 0.5 – 5%.