Invoice Finance

Unlock cash tied up in outstanding customer invoices

Invoice finance can help businesses access funds tied up in unpaid invoices, rather than waiting for customers to pay within their normal payment terms.

For businesses that regularly invoice customers, this can provide additional working capital to support day-to-day operations, fund growth or take on larger orders.

How can Invoice Finance help?

Invoice finance can potentially help businesses:

  • Improve cash flow
  • Access funds sooner after raising invoices
  • Manage working capital
  • Fund business growth
  • Purchase stock or materials
  • Meet payroll and operating costs
  • Take on larger contracts or orders
  • Reduce the impact of extended customer payment terms

The amount available will depend on factors such as the value and quality of the invoices, the customers being invoiced and the lender’s criteria.

Invoice Discounting

Invoice discounting allows a business to raise finance against eligible outstanding invoices while generally retaining control of its sales ledger and customer relationships.

This can provide access to working capital without waiting for customers to settle their invoices.

Factoring

Factoring is another form of invoice finance where the finance provider may take a more active role in managing the sales ledger and collecting outstanding invoices, depending on the facility.

This can be particularly relevant for businesses that want funding alongside additional support with credit control and collections.

Is Invoice Finance right for your business?

Invoice finance isn’t suitable for every business or every type of invoice.

The structure may depend on factors such as:

  • Business-to-business trading
  • Customer payment terms
  • Quality and value of the sales ledger
  • Customer concentration
  • Trading history
  • Industry
  • Existing borrowing
  • Overall financial position

At BAT, we start by understanding how your business operates and what you are trying to achieve before considering potential funding options.

Deal First. Lender Second.

We look at your cash-flow requirement, your invoices and the wider business before considering which type of invoice finance may be appropriate.

With over 35 years of banking and lending experience, BAT understands that the right funding structure needs to work alongside the way your business actually trades.

Discuss Your Invoice Finance Requirement

If your business is waiting for customers to pay and you need access to working capital sooner, talk to BAT about your requirements.

 

Discuss Your Funding Requirement