Improve Cashflow with Invoice Finance in York & Across the UK

Invoice Finance: Driving Your Business Forward

We all know that slow-paying customers can put a real strain on your business, stopping you from doing the things you want to do. Cashflow Finance can quickly unlock the cash in your invoices the moment you’ve done the work. Helping you fund growth, increase stock, recruit staff or help to pay general working capital expenses.

Pinpoint Finance will guide you through your options with Cashflow Finance. We’ll help bust the myths and explain the differences between invoice financing and invoice factoring. We can even select a solution that will raise funds on a single invoice or your whole ledger.

What is Cashflow Finance?

Cashflow Finance is really a collective term used for a variety of specialised finance products designed to assist businesses free up cash quickly and easily money that’s due to them. These products may be called Invoice Discounting, Invoice Factoring or Debt Factoring. So, Cashflow Finance is a catch-all term, which may even include Merchant Cash Advance facilities, for some businesses.

How does Invoice Finance Work?

Put simply, Invoice Finance uses your invoices as an asset and advances the cash to you that’s due from your customer before your customer needs to pay you. That means even if your terms of payment are 30 days or 90 days you can draw down the funds from Day 1.

This usually means getting an advanced payment of between 75-90% of your original invoice amount. This can all be done confidentially so that your customers don’t know. Once the original invoice has been paid the funder will deduct the original advanced amount, their fees and interest and the remaining balance is all yours.

Invoice Finance comes in two forms: Invoice Factoring and Invoice Discounting. Let’s take a closer look at each option to help you determine which one is best for your business.

Invoice Discounting

Invoice discounting allows you to access up to 90% of an invoice’s value while retaining control over customer payments. You repay the funds, including interest, once the customer settles their debt or starts making instalments. The remaining balance is released to you after deducting service fees and interest.

Invoice Factoring

With invoice factoring, you can draw up to 90% of an invoice’s value, but the lender manages debt collection directly with your customers. Once full payment is received, the remaining balance, minus fees, is released to you. This option saves time by outsourcing credit control and debt collection to experienced professionals.

Why is Finding the Right Cashflow Finance Important?

Finding the right cashflow finance deal for you and your business is often more important than finding the best interest rate on the market. Having access to the right cashflow loan or finance package, which is flexible, accessible, and tailored to your actual business needs, can often outweigh the benefit of just a market-grabbing interest rate.

Pinpoint Finance: An Asset to Have on Your Side

At Pinpoint Finance, we understand the importance of having access to quick and easy financing for your business. That’s why we offer access to both Invoice Discounting and Invoice Factoring as a solution that helps you access the money that is tied up in your outstanding invoices.

Our experienced Invoice Finance specialists in York offer online financial advice backed by FCA regulation and NACFB membership, ensuring the highest industry standards. With deep knowledge of the market, access to over 100 lenders, and extensive UK banking experience, we deliver tailored solutions that can significantly impact your business. Coupled with our commitment to exceptional customer service, Pinpoint Finance is a valuable partner for your financial needs.

5 Ways to Improve Your Cashflow

• Implement Invoice Finance: Unlock funds tied up in receivables.
• Negotiate Payment Terms: Work with suppliers and customers for favourable terms.
• Monitor Expenses: Regularly review and control operating costs.
• Maintain Cash Reserves: Set aside funds for unexpected expenses.
• Forecast Cashflow: Use financial projections to anticipate needs.

Alternative Types of Cashflow Finance

Beyond invoice finance, businesses can access options like unsecured finance and no personal guarantee loans for quick funding without collateral or personal liability. Solutions like merchant cash advances, short-term finance, and quick business loans offer flexible, fast access to capital, helping businesses address immediate cash flow needs.

Frequently Asked Questions