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Receivables Finance

Fincred CF is a receivables finance broker that can find the funding you need to release cash from outstanding invoices. Keep your cashflow healthy and strong with receivables finance. 

What Is Receivables Finance?

Receivables finance is another term for invoice finance, which allows you to receive money from invoices that have not yet been paid by your customers. 

The invoices you have raised for your customers are “sold” to a third party, who pays you a percentage of the invoice value upfront so you have immediate access to cash rather than waiting for the invoice due date. 

This is beneficial for your company’s cash flow as you do not have to wait for your customer to pay you (which might take 30 days, 60 days, or even longer). 

The name for receivables finances comes from a business’s “accounts receivable” i.e. the money that is owed to a business. As such, receivables finance is sometimes also known as “accounts receivable finance”.

Types of Receivables Finance

 

There are many different types of receivables finance. To see a full list, see our invoice finance page. The important thing to consider is whether responsibility for issuing and chasing the debt stays with your company or passes to the financing company. This difference is described by the terms “invoice discounting” and “invoice factoring”.

In invoice discounting, your company retains full control of your credit control procedures, including invoicing and chasing debts.

In invoice factoring, the financing company takes control of part of your credit control, including invoicing and chasing debts. 

Receivables finance is also considered a type of “asset-based lending“.

Should You Choose Invoice Factoring or Invoice Discounting?

Each receivables finance option has its advantages and disadvantages. As you might expect, invoice factoring tends to be more expensive (having a higher associated fee) than discounting. 

That said, companies that do not have a credit control department will probably appreciate the time saved and the expertise of having an experienced company chasing debts. In this case, factoring may be the preferred option. 

On the other hand, if you have a well-established credit control department, it may be more suitable to maintain your existing relationships when chasing debts. Speak to one of our specialists to discuss which receivable finance option is suitable for your business.

Other Questions Around Receivables Finance?

  • Is the agreement confidential? In a disclosed invoice finance agreement, your customers will be told about the finance facility.
  • In the case that your customer fails to pay the invoice, who takes on the risk/responsibility? FinCred IS can help you find the best trade credit insurance for your business, protecting you against non-payment of customers’ debts due to insolvency, protracted default, and political risks.
  • What percentage of the invoice value can I receive from receivables finance? Depending on your business and industry, you can receive up to 100% of the invoice value upfront.

Working with FinCred CF as Your Receivables Finance Broker

Receivables finance can be a complex area, but thankfully the experts at Fincred CF can make it easy for you. With many years of experience as a receivables finance broker, we can advise you on how to get the best arrangement for your business and your situation. 

Choose a partner in finance who works towards your best interests. Contact Fincred CF for a free consultation today.

UK Wide Industry Statistics

Total value off all sales financed in the UK - £bn

Domestic invoice discounting - £bn

Total number of asset based lending clients

Domestic invoice discounting clients

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