Receivable finance is a very popular funding solution that helps to free up working capital whilst a business continues to run smoothly. Also known as invoice discounting or invoice factoring, this solution will bridge the gap between cash being needed for day-to-day business operations and clients settling an invoice.
As the name suggests receivable finance means a business receives its funding as soon as it issues an invoice, it does not have to wait for its client to pay.
For example, if a manufacturer is asked to supply equipment to a restaurant, the restaurant might only be able to pay for the items over a 5-month period. The manufacturer can use receivable finance to receive payment when the invoice is raised and the restaurant can still arrange payment over the 5-month period.
Another example is a cleaning company that has secured some large contracts with a national home builder. The home builder will pay after 90 days but the cleaning company need funds at the start of the contract to pay the wages of all the cleaners. Receivable finance is again the perfect solution.
The NGI team are widely experienced in receivable finance and have recently facilitated a loan for £65k to assist a team of network engineers who specialise in network and structured cabling solutions. The company were experiencing rapid growth and needed the receivable finance facility to boost cash flow and maintain their growth.
To find out more about receivable finance please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.