What Is Invoice Finance?
Invoice finance allows businesses to release the cash tied up in unpaid invoices, typically within 24 hours of raising them. Rather than waiting 30, 60 or even 90 days for customers to pay, you receive an advance - usually 80-90% of the invoice value - immediately.
Sign 1: You Are Growing Faster Than Your Cash Flow
Growth is a wonderful problem to have - but it can create serious cash flow pressure. When you win a large contract, you need to pay wages, buy stock and cover overheads long before the customer pays their invoice. Invoice finance bridges that gap.
Sign 2: Your Customers Take a Long Time to Pay
If your debtor days are consistently above 45-60 days, a significant proportion of your working capital is sitting in your customers bank accounts. Invoice finance converts that into usable cash almost immediately.
Sign 3: You Are Turning Down New Business
If you have ever declined a new order because you did not have the working capital to fulfil it, invoice finance could be the solution. By releasing cash as you invoice, you create the headroom to say yes to new opportunities.
Sign 4: You Rely Heavily on Your Overdraft
Overdrafts are expensive and can be withdrawn at short notice. Invoice finance provides a more reliable, scalable and often cheaper form of working capital that grows automatically as your turnover grows.
Sign 5: You Invoice Business Customers on Credit Terms
Invoice finance works specifically for B2B businesses that invoice other businesses or public sector organisations on credit terms.
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Our team has helped hundreds of businesses unlock the cash in their debtors ledger. Contact us for a no-obligation conversation.