This is commonly referred to as factoring.  It is suitable for businesses who sell to other businesses either in the UK or overseas on credit terms, ie: the business gets paid in say 30 or 60 days from the invoice date.

The business can be advanced up to 80% of the invoice value when it is issued and so does not have to wait 30 or more days to be paid.  The remaining 20% is received when the customer actually pays.

This is an ideal way of providing the business with essential working capital monies.  It is an alternative to overdraft finance and as the business grows and issues more invoices, so does the amount of money available, unlike a fixed limit overdraft.

It can be a more expensive facility than an overdraft but it is more flexible and can really improve the cashflow of a business.

If you think that factoring could be useful for your business cashflow, talk to us to find our how we can help you achieve the best deal.