When the your customer pays the invoice, the lender will pay you the remainder of the funds, minus their fees and charges. When it comes to collecting the full invoice amount, you can either do this yourself, or let the lender do it.
Chasing up the outstanding invoices yourself helps you to maintain some confidentiality – your debtors will not know that you have taken out invoice finance. This option of invoice finance is known as invoice discounting.
Letting the lender chase up the invoices is known as invoice factoring and as the lender will contact your debtors directly, they will be aware that you have taken out invoice finance.
Funds can be released instantly, giving you the cash you need to meet the daily costs of running your business, without having to wait for anything from 30 to 120 days until the invoice is due. Invoice finance is a useful ongoing credit facility that can keep the cash moving into your business.
WSC Finance Ltd is a credit broker and not a lender. We are authorised and regulated by the Financial Conduct Authority. FCA FRN 986899. WSC Finance Ltd is registered in England under company number 14377080. Registered address The Mill, Pury Hill Business Park, Towcester, NN12 7LS.
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