All the frequently asked questions about our invoice financing facility. If you can’t find the answer you are looking for, feel free to contact us at email@example.com or call us on 0161 955 3522.
Invoice finance is when a lender provides you with money based on what your customers owe to your business, allowing quick access to a percentage of an invoice’s value, usually within 24 hours.
Invoice finance allows you quick access to cash that is owed to your business, meaning you do not have to wait to receive payment from your customers, this is especially helpful for cash flow or investment purposes.
We recently published an article looking at what exactly invoice financing is, how it works, and the advantages to your business
Invoice financing is a simple concept; rather than waiting days or weeks for invoices to be paid by your customers, we provide you with most of the value immediately! Here is a step-by-step guide on the process:
- You provide goods or a service to your customers.
- Invoice is raised and sent to the customers with Apollo assignment on.
- Invoice is sent to Apollo, who will verify this with the customers.
- Funding up to 90% is made into your bank account.
- When payment is due, Apollo will chase the customer.
- Customer pays Apollo and the remaining % is paid to you.
There are multiple benefits to Invoice Financing, below are just a handful of the many advantages invoice financing has to offer:
Access to quick cash: Payment can be made as soon as an invoice is issued, which can be used for investment, wages, and other growth.
Reduce risk to your business: With invoice finance, you can make sure you receive most of the invoice’s value immediately.
Remove the hassle of chasing late payments: With invoice factoring, we have an in-house credit control team who will ensure all payments are made to your business in the required time.
Make business payments faster: Because of the cash flow improvements invoice finance provides, this allows you to settle your repayments faster.
Quicker growth and development: Because you can release the funds quickly, these can be put into investing for business growth and development, in a shorter amount of time.
Whilst there aren’t many drawbacks of invoice financing, there are some things you should be aware of before you get into a facility:
It was created to solve the issue of insufficient cash flow: This type of funding will not be suitable for businesses whose customers typically pay on time.
Your customers are notified of an agreement: Customer payments will be collected by the finance supplier; meaning they will be fully aware of the funding service.
Credit is difficult to come by for smaller businesses: Typically, a firm must demonstrate a track record of the business. However, at Apollo, we work with businesses of all shapes and sizes, even those under £100,000 turnover!
At Apollo, we have the appetite to fund all businesses, regardless of size, industry, or adverse history. We never say NO! Apollo funds any business where a company raises invoicing to another business with credit.
This can vary depending on the facility’s terms. Typically, you can access up to 90% of an invoice’s finances.