What does invoice finance cost?
Compared with other types of business finance, invoice finance is a cost effective solution, and when compared with bank funding, the cost of money advanced is competitive. Although in general terms, fees are tailored to the specific needs of businesses and therefore differ from firm to firm.
There are two types of fee:
- Service Fee
This covers the day-to-day running of the sales ledger (usually between 0.5 per cent and 3.0 per cent of the funds advanced). - Interest
This is charged on the monies advanced to you.
You could also benefit from:
- Savings on people costs
Invoice financiers can provide credit control functions on your behalf as part of their factoring service, so businesses can make savings on the cost of employing a credit controller, typically saving the business between £15 to £20K per annum. - Significant savings
On costly overheads such as postage, stationery and telephone calls. - A healthier bank balance
Invoices are paid on time and more quickly. With a regular flow of cash into your account, it means you could save on bank interest and charges.
For more information and to compare invoice finance quotes please call 0800 597 4757 or apply online.
Invoice Finance Menu
The UK Factoring & Invoice Discounting Helpline is a leading finance brokerage specialising in factoring and invoice discounting. We offer free, independent and impartial advice on business finance options. We have been helping businesses of all sizes and commercial sectors solve cashflow problems for more that 10 years. We have found factoring and invoice discounting facilities for many thousands of businesses and remain in contact with all our clients.