Invoice
Finance Checklist

Invoice
Finance Checklist

Invoice Finance allows businesses to tap into the value of unpaid invoices by using them as security against lending.
 
This checklist can help you avoid common mistakes and help you decide whether Invoice Finance is suitable for your business, before you get going.

<p>Invoice Finance allows businesses to tap into the value of unpaid invoices by using them as security against lending.<br />  <br /> This checklist can help you avoid common mistakes and help you decide whether Invoice Finance is suitable for your business, before you get going.</p>

Invoice Finance allows businesses to tap into the value of unpaid invoices by using them as security against lending.
 
This checklist can help you avoid common mistakes and help you decide whether Invoice Finance is suitable for your business, before you get going.

Please note

This checklist is not part of an application process for Invoice Finance. However, we hope it gives you an idea of what is involved and what you need to do to prepare. Invoice Finance providers may ask for more or less information about your business and the finance you need than what is set out below. This will change depending on individuals involved.

STAGE 1: Understanding Invoice Finance

Are you aware of how Invoice Finance works? Do you know the difference between Factoring and Invoice Discounting and which is more appropriate for your business?
Does your business receive invoices? Does Invoice Finance suit your business’ ambitions?
Will you get an Invoice Finance facility to match your needs? Do you know how you will use the finance you’re provided?

STAGE 2: Are you eligible for Invoice Finance?

What is the value of your unpaid invoices? This will impact the amount of money you are eligible for.
Does the amount of finance you need match what Invoice Finance providers generally lend?
Do you have a trading history that proves you receive payment for invoices you’ve issued?
Do your financial statements show you have a good record of getting paid? How long is your typical payment cycle?

STAGE 3: Preparing your business for Invoice Finance

Invoice Finance providers will review and analyse your financial statements and your business’ credit report. Are you confident your accounts are suitable? Do you know what your credit report will say?
Do you know how you will use the finance if your application is successful? Have you forecasted the impact of the finance coming into your business?

STAGE 4: Understand the deal

Do you know how much the facility will cost you? What are the margins and fees involved?
Depending on the form of Invoice Finance you go for, either you or the Invoice Finance provider will manage your sales ledger. Do you know who is responsible for collecting payment for your invoices?
What will you do when the facility comes to an end?

What's your next step?

Want to learn more about Invoice Finance?

Invoice Finance allows businesses to use their invoices and accounts receivable as security against lending.