You can access the tool through the ABC Finance Invoice Finance page.
Invoice finance is a £3bn market in the UK with 35,000 businesses currently using either factoring or invoice discounting to support their cash flow.
Improving on a difficult to navigate invoice finance market
The tool allows you to input your details once and get multiple offers from some of the leading lenders including Lloyds Bank, Novuna and Close Brothers among others.
It works by allowing you to input your business details, with lenders then assessing the details input, and offering their best deal to you through the platform. Once you’ve taken a look at the offers made, you can choose your preferred lender and move forward with your application.
There are no broker or upfront fees and loan applications can be processed on the same day meaning businesses can get the money they need, when they need it and at a competitive rate.
Gary Hemming, Commercial Lending Director at ABC Finance had this to say “With interest rates continuing to rise and many business owners facing a real squeeze on cash flow, we felt that invoice finance would be vital to SMEs.
The market is currently difficult to navigate and the only real way to compare offers has been by manually speaking with each lender. This is really inefficient for both lender and borrower, and we knew that we could massively improve on this approach.
One of our core values is to increase transparency and to always make it easier for consumers and business owners to transparently find the best deal, so building this tool just felt like something that we had to do.
How will this benefit businesses?
According to Gary, the tool will offer some key benefits to businesses. They include:
- Ease of Access: No more sifting through countless websites or making endless calls. This tool offers a one-stop solution, streamlining the process of comparing invoice finance options.
- Time-Saving: Time is money, especially in the business world. By consolidating multiple offers in one platform, businesses can make quicker, informed decisions.
- Transparency: With the tool’s transparent approach, businesses can see a clear breakdown of offers, ensuring there are no hidden surprises down the line.
- Empowerment: Knowledge is power. By having a clear overview of the market, businesses can negotiate better terms, ensuring they get the best deal.
- Financial Health: Improved cash flow and working capital are just a couple of the financial health benefits. By choosing the right invoice finance option, businesses can ensure steady growth and stability.
Who uses invoice finance?
Invoice finance isn’t a one-size-fits-all solution. It caters to a diverse range of businesses, each with its unique needs and challenges. Here’s a snapshot of who’s tapping into the world of invoice finance:
- Start-ups: New businesses, eager to establish their footing, often turn to invoice finance to boost their cash flow.
- SMEs: Small to medium-sized enterprises, looking to expand or manage operational costs, find invoice finance a reliable ally.
- Large Corporations: Even the big players in the market leverage invoice finance to optimize their working capital and manage large-scale projects.
- Seasonal Businesses: For businesses that see fluctuations in revenue due to seasonal trends, invoice finance offers a cushion during lean periods.
What are the alternatives to invoice financing?
While invoice financing is a great option for many, it’s essential to know there are other avenues available. Exploring these alternatives can help businesses choose the best fit for their financial landscape:
- Bank Loans: The traditional route, bank loans offer a lump sum amount, usually with fixed interest rates. They’re suitable for businesses looking for substantial capital for long-term projects.
- Overdrafts: A flexible option, overdrafts allow businesses to borrow up to a certain limit, only paying interest on the amount used.
- Crowdfunding: A modern approach, businesses can pitch their ideas to the public, raising small amounts from a large number of people.
- Angel Investors: These are individuals who provide capital in exchange for convertible debt or ownership equity. They not only bring in money but often offer expertise and industry connections.
- Peer-to-Peer Lending: This involves borrowing money directly from individuals without the traditional financial intermediaries.
