Invoice financing has become a popular solution for businesses due to its simplicity and providing funding to businesses quickly to improve their working capital. Waiting 30 - 90 days to receive payment of invoices or late invoice payments can put a financial strain on a business.

To avoid running into cash flow problems, businesses can use an invoice financing provider to secure a percentage value of the unpaid invoice upfront. The lender will collect the money once the invoices have been settled along with a percentage fee.

Invoice finance provides an alternative finance solution to traditional forms of finance such as loans, lines of credit and overdrafts which often come with a multitude of eligibility requirements. The mechanics of providing funding for unpaid invoices to improve the cash flow of a business works the same for any size of business.

In order to be eligible for Novuna Business Cash Flow:

• Your business has to be invoicing other businesses (not consumers)
• You can be starting up, growing or well established. We support many businesses at different stages with their growth ambitions
• If your business is a new start, we prefer homeowners, but if not please still get in touch as we will look at each business individually
• Your business needs to have a minimum turnover of £50,000 per year

Invoice finance services are not currently regulated by the FCA (Financial Conduct Authority). To ensure integrity and a fair service is provided, UK Finance have an industry-wide code of conduct. The regulation of the invoice finance industry would most likely lead to an increase in the costs associated with invoice financing. Not being regulated ensures the costs of invoice financing are kept down for the consumers seeking to utilise invoice finance for an instant cash injection for their business.

We were the first provider to offer a one fee solution from 0.45% to 5% of your turnover depending on the size of your business. As your invoice finance broker, you can expect:

• No hidden fees
• No extras
• No set up costs

You can use our invoice finance calculator to give you an estimate of price and to understand how much cash you could release back in to your business by using Invoice Finance.

Our funding line is very flexible. As your turnover grows so does your access to funds. You don’t need to negotiate new terms with an invoice finance provider. We know that our service is much quicker than a bank so you can access funds almost immediately instead of having to wait days or even weeks.

We provide a facility called confidential invoice discounting. This allows you to maintain the relationship with your customers, without their knowledge of our involvement. A confidential facility is usually more suitable for businesses with a turnover of over £600,000.

The difference between invoice discounting and invoice factoring is that with discounting, you retain control of the collection process and stay in contact with your customers directly, whereas with invoice factoring the business sells its invoices to a third party and then the factoring company chases the unpaid invoices and sends payment reminders directly.

Generally speaking, invoice discounting facilities are used to leverage cash from your entire ledger, which means you’ll forward every invoice to your lender, and then settle your debts as you collect from your clients.