Invoice Finance I Hilton Smythe

Invoice Finance

Cash flow challenges holding your business back? Securing timely payments from clients can sometimes feel like an uphill battle, hindering your ability to invest in growth opportunities. That’s where our invoice financing service comes in.


What is Invoice Finance?

Invoice finance is a specialist form of short-term borrowing, where the loan is secured against unpaid invoices owed to you by your clients. It offers an easy solution to short-term cash flow challenges within B2B businesses who provide credit terms to their client, providing quick access to short-term capital to pay off outstanding debts, fund new stock or support new contracts.

The loan is secured against accounts receivable (AR), which are the balance of funds owed to the business and are considered assets on the company balance sheets. This allows them to be used as collateral for an invoice finance loan.

Typically, 75% and 90% of the outstanding invoice total can be made available through invoice financing, usually between 24 and 48 hours.

Invoice factoring

With invoice factoring, the lender will actively manage the sales ledger. This is a suitable solution if you:

  • Do not have an in-house credit control department
  • Require the lender to take care of debt collection

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  • Over 35 years experience
  • Completely independant
  • Honest Advice
  • Tailor-made solutions

Invoice Finance process example;

  • You send an invoice to a customer, and to your invoice finance lender.
  • Whilst your customer is arranging payment, which can be up to 90 days depending on your payment terms, your lender pays the majority (up to 90%) of the invoice value directly to you.
  • Utilise the funds released from the customer invoice.
  • When the customer pays the invoice, the client receives the remaining monies minus interest/fees payable to the invoice finance lender.

Advantages of invoice finance

  • Better rates than an unsecured business loan: Invoice finance leverages your accounts receivable as collateral, leading to potentially lower interest rates and more flexible terms compared to unsecured loans.
  • Fuss-free process: With invoice financing, the application process is often more streamlined compared to traditional loans, with less emphasis on your credit score.
  • Quick access to short-term capital: Invoice financing can deliver funds in just 48 hours, bridging critical cash flow gaps and ensuring timely payments for salaries, bills, or unexpected expenses.

Benefits of seeking invoice finance with Hilton Smythe:

  • A tailored service. Forget a one-size-fits-all approach. We can introduce you to the most suitable invoice discounting facilities and lenders to fit your unique needs.
  • Seamless and streamlined process. We help navigate paperwork and applications, ensuring a smooth and streamlined experience.
Other types of Invoice Finance
Invoice Discounting

Want to improve your cash flow while managing your own credit control process? Invoice discounting is a form of Invoice financing that helps you to confidentially access funds tied up in unpaid invoices to release working capital. Click the link below to find out more.

Invoice Factoring

In business cash is king and if you’re looking to get the cash flowing, invoice factoring can be a way to release cash from the account receivable from your balance sheet.