The guide to
Flexible Invoice Discounting
A strong cash flow position is a key characteristic of any successful business and yet cash flow challenges can leave even the most robust of businesses reeling – especially when these challenges feel like they are out of your control.
We work with firms in a wide variety of sectors, each with their own unique obstacles – from seasonal firms that find themselves cash poor in the lead up to a particularly busy period to companies that want to invest in CAPEX; from manufacturers navigating uncomfortably long payment terms to management teams looking to acquire other businesses or buy out business owners.
More often than not, lumpy cash flow or a lack of readily available working capital are at the heart of these obstacles to growth, yet the answer to alleviating the pressure is fairly straightforward.
Securing finance to bolster growth
There are an almost limitless number of finance options available to businesses, but some are particularly useful for those that have a growth purpose in mind.
Growth credit – also known as growth debt, or a growth loan – is one. But there are also working capital facilities that are well-matched to businesses looking to grow. Flexible invoice discounting is one of them.
What is flexible invoice discounting?
Flexible invoice discounting enables businesses to leverage either their entire sales ledger, or a chosen pool of debtors, by using their unpaid accounts receivables as collateral for the facility.
Why would a business use flexible invoice discounting?
Because they are able to leverage multiple outstanding payments, rather than individual invoices, this means they may be able to raise a significant sum – at Growth Lending we offer flexible invoice discounting facilities of up to £10m for example. This cash can then be re-invested in the business, for expansion, product development, or whatever growth plans the management team has in mind.
What are the benefits of a Growth Lending flexible invoice discounting facility?
Growth Lending’s flexible invoice discounting has the implied benefit of being flexible: there are no whole turnover agreements involved, so our clients can pick and choose which debtors require funding, keeping facility costs to a minimum.
Our facilities also avoid concentration limits or export caps; we see many strong, successful businesses denied funding by their banks simply because they have high order value with one customer. Our highly experienced structuring team enables us to assess every facility on a deal-by-deal basis, tailoring our facilities to our client’s unique needs.
What type of business is flexible invoice discounting for?
If you are a growing business registered in the UK, US, Singapore or Benelux region, with B2B invoices and debtor payment terms of up to 120 days, then flexible invoice discounting could be a great fit.
What next?
If you think your business is being hampered by cash flow challenges, get in touch with a member of our expert lending team, who will be happy to work out a bespoke solution to accelerate your growth.
