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Invoice Financing for Small Businesses
At Providus Trust, we provide businesses with the financial freedom to grow through invoice finance. By unlocking the value of unpaid invoices, companies can secure instant working capital without waiting for customer payments. This funding method supports essential business functions, including supplier payments, operational costs and expansion initiatives. In fact, invoice financing for small businesses is often a particularly useful way for SMEs to secure their credit requirements.
What is Invoice Financing for Small Businesses?
Businesses depend on steady cash flow to cover day-to-day expenses and take advantage of new opportunities. With invoice finance, companies can unlock funds quickly and efficiently by leveraging outstanding invoices. This ensures a stable financial foundation, reducing reliance on traditional credit lines.
Here at Providus Trust, we design flexible funding options tailored to each business’s operational structure. Whether you need ongoing support or occasional funding, our solutions are built to adapt to your cash flow requirements, enabling long-term business success with minimal administrative hassle.
Our approach to invoice finance offers several flexible solutions tailored to different business needs. Invoice factoring involves the lender managing credit control, ensuring customers pay on time. This approach is ideal for smaller businesses lacking the resources to handle collections internally. In contrast, invoice discounting targets larger businesses with established credit processes, allowing them to manage collections independently.
Selective invoice finance allows businesses to finance specific invoices from less reliable customers while maintaining direct control over well-paying clients. However, this option may involve stricter eligibility criteria. Spot factoring provides a one-off solution by advancing payment on selected invoices without long-term commitments, supporting short-term cash flow needs.
Specialist Funding for Growing Businesses
Securing working capital shouldn’t be complicated. We offer invoice financing for small businesses looking for a fast, reliable way to unlock funds. With up to 85% of invoice value available upfront, businesses can manage payroll, settle supplier accounts and reinvest in core operations without delays. Our experienced account managers guide clients through a streamlined funding process, offering transparent terms with no hidden charges. From fast approvals to flexible repayment options, we ensure every funding plan supports long-term business growth.
Empowering Businesses Through Tailored Funding
We work with businesses of all sizes, providing access to fast, reliable financing backed by outstanding invoices. By converting unpaid invoices into working capital, our clients gain the flexibility to expand, innovate and maintain financial stability, even during challenging market conditions.
At Providus Trust, we believe in empowering businesses with tailored solutions. Our asset-based lending approach makes funding more accessible, even for companies with limited credit histories. Let us be your partner in success by delivering the funding your business needs to scale and grow.
Our funding process is designed for simplicity and speed. From initial consultation to approval, we streamline every step to ensure your business gets the capital it needs without delays. Trust our dedicated financial specialists to create a financing solution that supports both immediate and long-term business goals.
Experience the power of invoice financing for small business. Contact us today for a custom funding solution designed to support your business goals and explore our other business finance options.
FAQs on Invoice Financing For Small Businesses
What is Invoice Financing for Small Businesses?
The invoice finance lender pays up to 85% of your unpaid sales invoices up front so that you don’t have to wait for your customers to pay. The remaining balance is paid once the invoice is paid, less the lender’s fee.
This makes invoice finance a safer option than a typical loan as you know you are going to receive the cash, but invoice finance just speeds up the process, freeing up your cash flow. This is particularly useful when you are trying to grow the business and take on more contracts or sell more stock as you don’t have to wait to be paid. Instead you can receive the majority of the cash and reinvest it to grow quicker or pay your supplier quicker to get an early payment discount.
Types of invoice finance
Invoice factoring
This is the most common form of invoice finance where the lender will be more closely involved in the facility. As the lender’s return is reliant on your customers paying their outstanding invoices, the lender will provide credit control services to ensure your customers pay on time. This is especially beneficial to smaller businesses where they do not have the time or manpower to chase up outstanding invoices.
Invoice finance providers will do this discreetly so that it doesn’t impact your relationship with your customers, but it’s such a common form of finance now that most businesses don’t think twice about it.
Invoice discounting
Is very similar to factoring, though it is targeted to larger businesses with larger, more reputable customers and so the invoice finance lender will have very little involvement in the process of collecting invoices. As a result, invoice discounting is typically only available to larger businesses who have sufficient credit controls / processes in place to ensure their outstanding invoices are paid.
Selective invoice finance
Is where you select the specific accounts/ customers that you wish to finance instead of financing all your invoices. This is useful where you have a few key clients that consistently pay you on time, but you have a few other accounts that are not so reliable and so you can use selective invoice finance to get those advanced and use the lenders credit control resources to help collect payments.
However, it’s worth noting that the lenders won’t just take the risk of financing your unreliable and un-creditworthy customers who may not pay and so this can be more difficult to get or may be more expensive.
Spot factoring
Is more of a one-off solution of invoice finance as it does not require you to enter into a long term facility where you process all your invoices through the lender. Instead, spot factoring enables you to choose the specific invoices that you wish to advance with a lender and get paid for. This can be particularly useful if you need to free up some cash for short-term purposes.
With the different options available here, the solution for you is mainly dependent on the size of your business and how long you need the finance for. If you’re unsure, do get in touch and we can help you understand which option is best for you. We also find some customers enter a hybrid model of invoice finance along with a revolving credit facility.