What is an invoice finance company?
An invoice finance company will typically advance up to 90% of the invoice's value and once the customer settles the payment, the company will release the remaining amount, minus any service fees.
Invoice finance companies offer a specialised financial service whereby businesses can access immediate funds tied up in their outstanding invoices. Instead of waiting for clients or customers to settle their bills, a company can sell its unpaid invoices to an invoice finance company for a fee.
This provides the business with immediate cash flow, which can be instrumental in managing day-to-day operations, payroll, and other expenses. The invoice finance company then takes on the responsibility of collecting payment from the debtor.