Banks typically set & limit business overdraft levels based on a company's trading history, or for the more proactive on your best guess cashflow for the next 12months (which of course has to be in line with your historic trading for it to have any credence!) plus in the current climate often on your personal worth and ability to provide your home as security.

Once fixed and agreed overdrafts are difficult to increase with any request often leading to the Bank questioning your ability to project your cashflow needs properly, despite the fact that we know business is a very fast moving beast and what was right in January is often not by July.  This means that an overdraft generally is a backward looking, rigid way of financing company growth, with the worrying disadvantage that it could be withdrawn at anytime.  In direct contrast, an alternative business funding option is revolving debtor finance known as invoice finance which can take the  form of either factoring or Invoice discounting, these provide funding solutions that grow with a company's sales day by day and is only constrained by

the level of invoiced business transactions. i.e. you business has a funding facility directly linked to its sales achieved. Invoice Finance therefore utilises what is for businesses their primary asset, i.e. the outstanding value of any trade debts offered on credit terms. When a company increases its business levels and therefore the value of any outstanding invoiced debts, then this flexible cash flow solution automatically expands with those debts thereby filling any potential funding gap for supplies, raw materials etc.

Invoice finance is therefore an asset based facility (i.e the lender firstly looks at the worth of the companies debtor book ( not of your house!), readily accommodating business expansion, typically giving fast access to cash up to 90% of your outstanding trade debts. Cash raised in this way maintain cash flow or working capital.

Advantages of Invoice Finance

The business get instant access to cash from their invoices- no more waiting to get paid for work you have completed. 

What type of companies have we helped?

Turnover £100,000 to £100m  

Established & Start Up Companies 

Companies in a CVA and those looking to “Phoenix” 

Poor Credit History 

Some Contractual Debt 

Companies wishing to change their current provider /funding structure

Rejected by Other Invoice Finance Lender 

Contact us NOW to see how we can help you

01633 415227 email direct@hhf.uk.com.