Invoice Finance - Get Invoices Paid Upfront
Invoice finance from Octagon Capital can help you get 85% of your outstanding invoices paid upfront - maintain a healthy cash flow and pay only 2% - 3% interest on what you borrow.
- Borrow up to £50 million
- Borrow up to 12 months
- Up to 85% of your invoice value
- Used by construction, caterers, fashion, startups
- Rates from 2% per month
- All credit scores considered
- Funded in 48 hours
Need an Invoice Finance Company? Start Your Application
How Does Invoice Finance Work?
Invoice finance can help you release cash that is currently tied up in unpaid invoices. For many growing businesses, they can have invoices which take 30, 60 or 90 days to clear, but it to help cash flow and keep the business running, it would help to have access to the funds immediately to pay for things like rent, staff, production, inventory and more.
Invoice finance companies can help by verifying and approving your invoice from the vendor – and if successful, you can receive up to 85% of the total invoice amount upfront within 48 hours.
The loan terms are typically a few months, whether it is just one invoice or a full ledger of all your invoices. The rates are very affordable, at just 2% and 3% per month since you are providing quality asset-backed collateral.
Invoice Finance Example
Jane, a caterer in London, has been hired to do a corporate event and has sent the client an invoice for £30,000 which gets paid 50% upfront and 50% upon delivery.
To run the event smoothly, she needs to buy food, hire staff, cutlery, plates and more, but the £15,000 she was paid initially does not cover the full costs.
She applies for invoice finance, showing the lender her outstanding invoice. The lender verifies with the corporate firm that the invoice is correct and grants her an invoice finance loan of £10,000 which she uses for 2 months.
Jane uses the funds successfully, runs her event smoothly and repays £10,300 back to the lender in full.
Use Our Invoice Finance Calculator
Enter the value of your invoice and how long you need to borrow for. The team of advisors from Octagon Capital will come back to you with some next steps.
What Are The Benefits of Using Invoice Finance Companies such as Octagon Capital?
Maintain Cash Flow – Cash flow is everything for small and growing businesses and when invoices are delayed, it can put a real strain on the everyday growth and running of a business. Invoice finance fills the gap perfectly for those growing businesses who need to stay on top of their cash flow.
Get 85% Upfront – You can have up to 85% of your invoice value paid to you upfront, helping you pay for any immediate expenses which may be essential the running of your business including manufacturing, staff, rent, inventory, shipping, transportation and much more.
Fast and Effective – For those companies with nagging cash flow requirements, invoice finance is fast and effective. The application form and processing takes only a few hours and fund can be made available in 48 hours or less.
Help Grow Your Business – If you are looking to grow your business, invoice financing offers a low cost way to help you stay on top of your finances. Many fashion companies and caterers have attributed invoice finance to the success of their businesses.
Low Cost – There is no need to risk going into administration, using expensive loans or overdrafts – with rates of only 2% to 3% per month, it is very affordable.
What is The Criteria for Invoice Finance?
- Registered in the UK, Scotland & Wales
- Limited Company, Sole Trader or Similar
- Proof of invoice
- No recent IVAs or bankruptcy
- Minimum annual turnover of £50,000
- Minimum trading history (depending on the lender)
Am I Eligible with Octagon Capital?
Any business can be eligible for an invoice loan. If you have a sizeable invoice with a long expected repayment date, this type of product could be the perfect fit.
Invoice lenders are looking for vendors who have already paid your invoices previously or who are ideally large companies (e.g large UK retailers) – hence they should be good for a payment on the terms they have highlighted. This will add credibility to your application and help it get processed and approved as soon as possible.
What Types of Companies Use Invoice Finance?
Invoice finance is popular for any new, small or fast-growing business, or any firm that suffers from having invoices that take long to get paid.
The most common businesses that use invoice finance including:
- Fashion companies
- Caterers
- Manufacturers
- Marketing agencies
- Recruiters
- Start-ups
- Fast-moving good producers e.g electronics
These types of companies are often working on large purchases or orders, but have to provide something physical before they can be paid in full.
They are likely to have other ongoing costs such as premises, staff, inventory and other essential overheads. If a large order comes in, but requires a lot of working capital, invoice finance companies can help fill and provide a much needed injection of cash.
Invoice Finance FAQs
Invoice finance allows you to borrow money against a future unpaid invoice. If you can have an invoice with 60 or 90-day payment terms, you can apply to receive funds now to help with working capital.
This is where you hand over your entire sales ledger to an invoice finance company and they will pay you upfront and follow up payment directly with all your vendors.
You can also apply after you have won the bid and are looking to complete in 28 days or sooner.
This is another way of saying invoice finance, whereby you get a percentage of the invoice value in the form of a loan.
This is similar to invoice finance; you borrow money against invoices on a pay-as-you-go basis.
You can typically receive up to 85% of your invoice value and this can be thousands, tens of thousands or millions of pounds.
You can borrow over 3 to 24 months, although some lenders may have different terms and there may be a different minimum (e.g 6 months) or a different maximum term (e.g 12 months).
You will typically pay a monthly interest rate of 2% to 3% per month.
If a client does not pay an invoice, it is the main customer’s job to try and reclaim the money owed. If after a prolonged period payment cannot be collected, it is up to the customer to repay the debt. Some providers offer a ‘without-recourse’ service at an extra cost, this protects businesses against non-payment.
Simply enter your details into our form and one of our experienced advisors will come back to you immediately. We require some basic information including the value of your outstanding invoices and the amount that you are looking to borrow. You can also call us on 0333 414 1491 or email us at sales@octagoncapital.co.uk