Invoice Finance Broker
Invoice finance or factoring is a way for businesses to borrow money against pending invoices from customers. This is a simple and most effective way for businesses to improve cashflow and cover ongoing liabilities. Invoice finance or factoring can help you with advance payments which would normally take longer to be paid. There are two broad types of invoice financing in the UK – factoring and invoice discounting. As an invoice finance broker, we can help with both of these.
Factoring
Invoice finance is alternative working capital product that enables businesses to sell unpaid invoices to a third party and can receive a payment in advance. In simple terms, the factoring company buys your invoices for a percentage of their total value and then takes responsibility for collecting the invoice payments. They will also take control of your sales ledger and collect bad debt giving you total piece of mind.
- 100% funding against invoice can be made available in 24 hours
- Predictable cashflow allows you to forward plan and focus on running your business
- Bad debt protection available for peace of mind
- You must sell business to business on credit terms
- Annual account statements for last 2 years with cashflow forecast statement
- You give your customers credit terms of between 30 and 90 days
Invoice Discounting
With Invoice Discounting you maintain full control over the collection of payments, making the facility entirely confidential. This is alternative solution to improve cash flow and release cash from unpaid invoices. However, you will run the risk of managing late payments and bad debts. This type of funding is especially useful as the company pays interest and fees based on usage. The debt revolves and does not have to paid back over a short time period as a loan would. Invoice discounting facility is suitable for businesses:
- Have projected annual turnover over £250,000
- Wants to keep this facility confidential
- You must sell business to business on credit terms
- Bad debt protection available for peace of mind
- When your debtor pays, the balance of the invoice is made available to you – less a service fee
- Management team must have proven track record and sector experience
Alpha Capital is a Commercial Finance Broker and not a Lender.
Alpha Capital is trading style of Alpha Capital & Debt Advisory Services Ltd, Company Number: 12557280.
Alpha Capital and Debt Advisory Services Ltd is authorised and regulated by the Financial Conduct Authority. Our FCA number is 988370 and this can be checked by visiting www.fca.org.uk/register. Our registered address is Unit 3, 1st Floor, 6-7 St. Mary At Hill, London, EC3R 8EE. Company number 12557280.
We may receive payment from the finance provider should you decide to enter into an agreement with them.