Invoice Finance Services

Access its working capital by freeing up cash from unpaid invoices

What is invoice finance?

Invoice finance is an alternative method of funding your business.

It gives a business the chance to access increased levels of working capital; this is provided by releasing money owed to you from your outstanding invoices. This frees up money for you immediately, improving your overall day to day cashflow management, so you can get on with the running of your business.

Invoice finance is essentially a replacement to a business loan or overdraft.

Many business owners are ineligible for the full amount they would need to borrow to cover unpaid invoices. But, if they happen to be accepted for a loan, it also puts physical assets at risk.

With invoice finance, any unpaid invoices are funded by assigning them to Peak, so you can focus on paying your suppliers, workers and other financial obligations on time.

In simple terms, you ‘sell’ your unpaid invoice at a discount. Once your invoice is paid, you will receive the remaining balance, minus our fee.

Here is an example of how invoice finance works in principal:

  • You have an outstanding invoice worth £20,000, which you are awaiting payment from your customer
  • By choosing invoice finance, you receive an 85% advance on the total, giving you £17,000 up-front
  • We then undertake bespoke credit control on your behalf to secure prompt payment
  • The customer pays their invoice
  • The lender fees are subtracted, for example, 1.5%, which equals £300
  • Which leaves a value of £2,700 remaining

Why choose invoice finance?

As a business, ensuring you stay on top of your cash flow is vital. Which is why invoice finance is an effective way of allowing you to have more control over your finances.

Whether you’re a new company, or a well-established business undergoing a restructure, borrowing money through unpaid invoices is a far less risky option to boost your cash flow.

It allows you to continue to grow your sales and your business, without relying on the fast, timely payments of your customers, putting control of your cash flow in your own hands.

Am I eligible?

Eligibility for invoice finance can vary, but typically you need to:

  • work business to business, not via consumers
  • be a limited company, LLP or sole trader
  • have a minimum turnover of £50,000
  • offer industry-standard credit terms

How can we help with your invoice finance?

At Peak Cashflow, we want to work with you closely to tailor a specific package that meets your needs. 

Our one-to-one approach is very different from our competitors – we understand the requirements of your specific business, and ensure we work together for an effective strategy that works.

What are the costs?

Once we’ve discussed the variety of options you have to improve your cash flow, we can structure a bespoke facility which will fit around your business individually.

There are a variety of different types of invoice finance, these include:

Invoice Factoring

Disclosed facility offering credit control and higher advance amount. Ideal for small businesses.

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Invoice Discounting

Confidential full facility. Manage your own credit and collections. Ideal for high turnovers.

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Bad Debt Protection

Protection from unpaid invoices. Add to either facility. Ideal for small businesses.

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Confidential Factoring

Maintain confidentiality within invoice factoring.

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If you’re ready to discuss your financial needs and requirements, contact us directly to see how we can help.

Book a free 45 min consultation

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