Invoice finance means you are able to accelerate your business growth as the typical constraints placed on working capital through slow paying clients is removed.
It means you are not reliant on someone else’s cash flow to maintain your balance, and you don’t have to turn down lucrative sales opportunities because of a lack of working capital.
If you’re wondering about the difference between invoice factoring and invoice discounting, it’s actually very straightforward.
Invoice discounting: You issue an invoice, send your lender a copy, and they’ll pay you up to 90% of its value. When the invoice becomes due, you take full control of chasing it so your client relationships remain in your hands.
Confidential Invoice Financing: Where you retain control of the entire sales ledger process and your customers are unaware of any third party involvement.
Invoice Discounting (Factoring): Where you discount every invoice and this is advanced by the lender. The lender acts as your credit control function and collects the payments directly from your client.
At Honey Commercial Finance we can demonstrate to you how simple and easy it can be, if its your first time using Invoice Finance or you’re looking to switch providers for a better service.