19 January 2016

Single Invoice Financing

single invoice financeSingle Invoice Finance

For many companies single invoice financing is often overlooked as a cash flow funding option. There are many reasons why, often a simple lack of awareness that there are so many options available.

Here is some more information you may find beneficial.

The Myths

Let’s rule out the wrong myths about single invoice finance;

  • It is for struggling businesses – No, Companies in growth use it most
  • It is really expensive – No, because you only finance what you want it is not expensive as you think
  • I get tied in – No, there is no contract or long term commitment
  • Concentration prevents me – Concentration of client debtors does not matter
  • The paperwork is time consuming – No, it is not administratively difficult, 15 minutes should do it
  • My client knows I am using invoice finance and won’t like it – You can do it confidentially if you wish

The Benefits of Single Invoice Finance

These are some of the reasons why single invoice finance can really help;

  • Traditional invoice finance can work really well, however for businesses that have a concentration on a single or few debtors then traditional invoice finance can fall over. With single invoice finance the deal is per invoice, therefore having a concentration within your debtor book no longer prevents cash being released to you
  • Sometimes a new contract or a larger than average contract can lead to working capital pressure. Getting credit limits increased with traditional invoice finance can prevent cash being released. With single invoice finance you can pick and chose which invoices to raise cash against, this means that if a large contract is won then you can get credit agreed against it and enjoy the growth
  • It doesn’t have to be a one off. Single invoice finance can be used for a single invoice, however that does not mean you cannot finance the same debtor time and again. What it means is that you can pick and choose which invoices to finance with no commitment or obligation to finance anything else
  • Some sectors or types of invoice that are often excluded by regular invoice finance providers can be accepted by single invoice finance lenders. Things such as digital media, construction or export which are normally hard to finance can be ideal for single invoice financing. This is due to each transaction being separate and with verification being done differently it means they can be financed

More Information

For more information about single invoice finance, including how it works then please get in touch. Lime Consultancy work with a range of different providers all of who have different preferences and processes, so please use our expertise before applying yourself. We don’t charge upfront fees so there really is no reason not to take advantage of what we do.

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