Invoice Finance

You’ve done the hard work, now have access to the money. Get a line of credit against your unpaid invoices.

Grow Invoice Finance assists your business maximise it’s potential. Use your unpaid invoices to grow your business, pay suppliers, the tax office, wages or to pay yourself dividends. Get a flexible line of credit on your unpaid invoices.

Invoice Finance, also known as Debtor Finance, can help your business with effective short-term cashflow management and is a stress-free solution for managing cash flow for your business.

How does Invoice Finance Work?

Invoice Finance is a product where businesses sell their invoices to a third party for funding. This facility is useful for businesses whose growth is hindered by slow repayments of invoices.

There are two main forms of invoice finance, and they are:

1. Invoice Factoring – where financiers purchase the unpaid invoice outright and take responsibility for collecting payment in partnership with the seller or outright if more appropriate;
2. Invoice Discounting – a secured loan against your outstanding invoices

Whichever type of invoice financing you decide on, generally the following steps apply:

1. Invoice the customer
   ‍After your customer receives their goods and/or service, the business will invoice them with the amount owed and date payable.
2. Seller enters into an arrangement with their finance provider
   ‍The business cannot wait for the customer to pay, so they decide to sell the invoice to a financier.
3. Access your funds sooner
   The finance provider then accepts the transaction and depending on which type of finance is being taken out, either purchases the invoice or provides the business with a cash advancement of approximately 70- 80% on the invoice value, or up to 85% at Grow.
4. Get paid
   If you took out invoicing discounting, you will then be required to carry out accounts receivable as normal. With invoice factoring, the financier chooses how the accounts receivable function will happen in consultation with the business.
5. Finalise agreement.
   ‍When the final payment has been completed, the remainder of the invoice that you didn’t receive earlier is repaid back to you, minus a service fee.