Invoice financing includes factoring, invoice discounting and asset-based lending. It can be accessed by the SME and corporate market to unlock the value of unpaid debts and assets of a business, such as stock, plant and machinery.

This type of financing has distinct advantages. In invoice discounting, funders may be able to offer up to 85% of the value of unpaid debts well before that debt is due to be paid. This dramatically reduces the credit cycle, getting cash back into the business sooner. The benefit of improved cash flow means cash to drive the business forward or simply to keep a company trading.

Factoring adds another limb in offering a credit control function which has the added advantage of freeing up resource. The flexibility such funding provides can help a business grow, and funders are able to apply bespoke solutions to fund in most sectors and for seasonal businesses. Factoring is no longer considered a last resort option. 

In asset-based lending, businesses are now looking at ways to release the value from stock, plant and machinery. Many funders are able to engage with business leaders to understand plans for that business and group assets, which creates a value to support that business going forward and in a way that is not necessarily available through traditional bank lending or by overdraft. 

In all, invoice financing is able to support growth, as well as day-to-day working capital and cash management, all of which helps restore businesses' confidence.