Invoice financing is a straight forward and swift way to help businesses access these funds, not only improving cashflow by releasing capital tied up in unpaid invoices, but also helping protect against bad debt if the worst should happen and your customers become insolvent.
Typically invoice finance looks at the value of all of your invoices and then can release up to 90% of their value on a 12-month contract. However, there is also the option of lending against the value of one particular invoice, known as single invoice financing or spot invoice financing.
As the name suggests this allows a business to mitigate any cash flow problems against a single high value invoice. Here at NGI we are proud to be able to offer this service to our customers as one of creative clients recently found out.
A design agency secured a lucrative contract with a multi-national sportswear provider with a value of £200,000. However, the payment terms of the contract were 90 days. Our client needed to access these funds sooner and as such spot invoice financing was the perfect solution. By providing them with up to 90% of the value of the invoice, they were able to improve their cashflow situation and then pay us back, with interest, once the invoice had been paid in full by their client.
If you think that single invoice financing could help your business we would be delighted to discuss it with you in further detail. Feel free to contact one of our team on 01993 706 403.