At NBS Financing Broker EST, we understand that cash flow is vital to the smooth running of any business. Invoice finance, also known as receivables finance, provides a way to unlock cash tied up in unpaid invoices, helping ease the strain on your cash flow by advancing funds as soon as invoices are raised. This eliminates the waiting period between invoicing customers and receiving payments, which can be especially helpful when customers take longer to pay than the typical 30, 60, or 90 days.
The two primary products in invoice finance are Factoring and Invoice Discounting.
Factoring
Factoring involves not only receiving funds against outstanding invoices but also outsourcing the management of your sales ledger, including credit control and the collection of overdue payments. In most cases, factoring arrangements are disclosed to your customers, making them aware that a third-party is managing your invoices. NBS Financing Broker EST can help you secure a factoring facility that allows you to focus on growing your business while we handle the debtor management.
Invoice Discounting
Similar to factoring, invoice discounting provides cash advances on unpaid invoices. However, unlike factoring, invoice discounting is typically undisclosed to your customers, meaning you retain control over your sales ledger and credit control. This option is more suitable for larger, well-established businesses with a strong internal sales and credit management function. NBS Financing Broker EST offers invoice discounting solutions tailored to your business needs, available for both domestic and export invoices, though certain restrictions may apply for financing export markets.
Bad Debt Protection
Both factoring and invoice discounting can be offered with Non-Recourse options, also known as bad debt protection. This means that in the event a debtor fails to pay, the risk lies with the financier, providing your business with an extra layer of protection.
Costs
Invoice finance services generally come with two cost components:
- Service Fee – A small administration fee, typically linked to your business’s turnover.
- Interest Payment – Charged as a percentage over the bank base rate on the funds advanced.
At NBS Financing Broker EST, we help you navigate the best financing solutions to suit your business needs, whether you’re looking for factoring, invoice discounting, or bad debt protection.