For businesses left with a time lag between issuing an invoice and receiving payment, invoice finance is a great option.
In many industries, payment after 30, 60 or even 90 days is standard, while your rent, wages and other bills continue to be paid every month. Where you have just a few major projects on the go, each with long payment terms, this can create significant problems
with cash flow.
Invoice finance plugs that gap, allowing you to borrow money against outstanding invoices so your cash flow does not reach
Traditional lenders such as high street banks can be wary of giving loans to businesses to plug the holes in their cash flow. Invoice finance is designed specifically for this reason: to assist businesses working across all business-to-business (B2B sectors), to achieve cashflow stability.
Invoice finance is particularly useful in the construction industry, for example, where material costs can be very high and often paid up front, but payment can take many weeks or even months to come through. By using Invoice Financing cashflow can be substantially improved enabling the business to move on to the next project.
Keeping your business running
Finance can be made available from the day your invoice is issued, so the business can continue to operate as normal.
With support from the experts at RedSky, businesses can navigate the invoice finance market and find the right funder to meet their needs. Our advisers will even manage the application process to ensure it runs as smoothly as possible.