Do you qualify for Invoice Finance?

To apply for an Invoice Finance facility you need to meet certain criteria. Most Invoice Finance providers will provide the essential criteria on their website, some will have other bespoke criteria depending on your industry sector or length of time the business has been established. But let’s look at what the usual criteria looks like.

Firstly, you need to be a business that deals with other businesses and one that raises invoices for payment.

Generally, an Invoice Finance provider will have a minimum turnover threshold and you’ll need to provide your business accounts.

Because the relationship between you and your Invoice Finance provider is unique, they may ask for other documentation, particularly if you are a newer business.

What is Invoice Finance and how does it work?

Can every business sector secure Invoice Finance?

Most sectors in which business are trading B2B can access Invoice Finance solutions, particularly industries reliant on supply chain which tends to have longer payment terms, meaning greater payment challenges if invoices are paid late. Bibby Financial Services for example, works with over 300 business sectors.

Securing an Invoice Finance provider will support a smoother and more reliable cashflow, particularly if you’re in an industry that traditionally offers longer payment terms or often pays late, or are looking to release funds in order to jump on lucrative business opportunities requiring investment.

Waiting 30, 60, 90 days or more to be paid causes cashflow pressure and prevents businesses from growing. Invoice Finance solutions can provide instant funding for unpaid invoices so you can get on with doing what you do best – running your business.

Whether you choose Factoring or Invoice Discounting is dependent on the size of your business and whether you have a Credit Control team. In general, factoring is preferred by smaller businesses with no credit control team. Invoice Discounting is more suitable for larger businesses wanting to continue to manage their sales ledger.

Whatever you decide Factoring or Invoice Discounting, unlocking the cash tied up in your invoices can reap benefits for your business, providing you with peace of mind and the ability to take advantage of opportunities that arise to grow your business.