WHAT IS INVOICE FINANCING?

Invoice financing refers to a variety of financing options in which companies sell their accounts receivable (invoices) to a third party (Financier) for a portion of its value. It’s a beneficial financing instrument for companies whose growth is impeded by offering credit terms to its clients.

HOW DOES IT WORK?

You go about your business, as usual, invoicing your clients and customers.
The invoices are subsequently forwarded to Funding Alternative Group who pays you a pre-determined proportion (which varies by customer but ranges from 50-85%) within 48 hours.
If necessary, you will chase the payment as usual, or we will do it for you, depending on our agreement with you.
Once the invoice is settled, you will get the balance of the invoice minus any agreed-upon service fees.

SINGLE AND SELECTIVE INVOICE FINANCING

Funding Alternative Group specialises in supporting businesses that require finance assistance on selected invoices or selected customers in the same way that some suppliers utilise it for their entire sales ledger—this facility, can also be known as spot factoring. Single or selective invoice financing is an excellent option for companies that rely on a small number of high-value invoices

or clients that have large exposures. By financing these invoices, businesses can access the cash to reinvest into their business and supply chain.

WHAT ARE THE BENEFITS OF SINGLE INVOICE FINANCING?

Selective invoice finance allows you to liberate funds trapped in unpaid invoices for a one-time fee, rather than waiting 30, 60, or even 90 days for the customer to pay.

Other benefits include:

  1. You preserve control over your sales ledger and client connections.
  2. Money can be raised in a matter of hours.
  3. Use the cash to purchase your stock or raw materials on time; or even ahead of time to receive prompt payment discounts.
  4. A business will benefit from financial flexibility, allowing it to expand and invest in new projects.
  5. There are no long-term contracts or fees to pay on a regular basis.
  6. If you wish to leave a selective invoice finance agreement, there are no ‘break fees.’
  7. It can be used as infrequently or as frequently as you require.
  8. You will likely receive the extra benefit of having ‘Bad Debt Protection’ which allows your business customer relationships to grow with confidence.