The world of invoice finance

The popularity of invoice finance and asset-based lending has surged in recent years. As traditional lenders have become increasingly risk-averse, more businesses are recognising the benefits of these lending options and the unique support they can offer them to grow.

Increasing year on year

A recent UK Finance report states that such funding is up 13% year on year, reaching in excess of £22 billion across some 40,000 UK businesses at the end of March. This is the highest advances figure ever.

This surge in popularity of invoice finance comes down to it being a well-established, fuss-free source of funding to support a business’ growth. Today it helps tens of thousands of UK SMEs confidentially turn unpaid invoices into cash in the bank – which means they can continue trading, grow and invest to maintain their workforce.

There are a wide range of invoice finance products available including factoring and invoice discounting – all of which allow businesses to raise funding.

Which businesses does invoice finance suit and why?

It’s a particularly popular option for service-led industries, such as recruitment consultancies, transportation and logistics companies and those offering professional services.

There has also been growth in clients involved in manufacturing, distribution, construction and it is by no means limited to these sectors.

What are the benefits?

One of the key benefits of invoice finance is that it allows business owners to access cash without their customers knowing. It also helps overcome issues of late payment which, according to a recent study, puts the financial viability of one in four UK small businesses at risk.

Businesses who have the support of our Optimise service have the comfort of knowing that they are maximising their funding. If the requirements of a business change during the course of the invoice finance facility we can provide guidance with any applications for additional funding to ensure there is no disruption to cash flow.

Speak to the team today: 0808 178 0024