What Is Invoice Finance

What is Invoice Finance?

Many people are familiar with certain kinds of business funding and lending options such as loans, overdrafts and cash advances but we know from experience that many people are still uncertain about various terms associated with Invoice Finance so we’ve put together an overview of all the key definitions that we are often asked about:

Invoice Finance

This is what Factoring and Invoice Discounting are known as collectively – two forms of releasing cash from unpaid invoices

What is Factoring?

Essentially, it’s when a company releases cash tied up in unpaid invoices- we’ll pay you an agreed percentage upfront, then when the invoice is paid to us, we’ll pay you the remainder minus a small fee. It's sometimes referred to as 'Debt Factoring' too. 

What is Invoice Discounting?

Similar to factoring but your credit control will continue managing your relationship with the customer

What is Non-recourse Factoring?

What we call at Bibby ‘Bad Debt Protection’ which will safeguard you against non-payment by a customer

What is Confidential Factoring?

We don’t tell your customers that you are using a factoring facility so we will act as if we’re part of your credit control team.

What is Asset Finance?

Asset Finance is where you can either finance assets you already own or where you want to fund additional equipment. The most popular types of asset finance are Hire Purchase and Leasing which help you spread the cost of investing in new equipment. 

We also do more specialist funding such as Trade Finance to help you with suppliers both in the UK and abroad, Export Finance for selling overseas and Construction and Recruitment Finance which have both been designed specifically for their sectors.

For more information on each of these services either download our Simple Guide to Invoice Finance or click on the links below:

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Factoring

Free up unreleased cash tied up in unpaid invoices

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Invoice Discounting

Free up cash in unpaid invoices but maintain credit control

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Asset Finance

When you're looking to finance assets you own or to fund new equipment.

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Bad Debt Protection

Peace of mind, safeguarding you against non-payment - you can even choose which customers you want to get cover against