Invoice Finance Leeds

Invoice Finance Leeds

Invoice finance in Leeds is a key service at ShadowFax, helping companies across the city manage cash flow with confidence. Many Leeds businesses run into delays because customers take weeks to pay for completed work. Invoice finance and factoring in Leeds gives you access to funds that are tied up in unpaid invoices so you can keep your plans moving without waiting for payment terms to run their course.

We act as a finance broker, not a lender. Our role is to guide you through the options, compare facilities from a wide range of reputable lenders and secure a funding solution that supports your working capital. Every recommendation is based on your circumstances, with clear information, no hidden fees and straightforward advice you can trust.

As a finance partner to companies across Leeds, we work with firms of all sizes and in many different sectors. If your business invoices other businesses, we can help you understand how invoice financing works and whether it is suitable for your situation.

Companies approach us when they are facing supplier deadlines, growing faster than their available cash or experiencing delays with customer payments. Invoice finance can remove this pressure and give you a steady flow of working capital, which is why it has become a widely used form of business funding.

 

How Invoice Financing Helps Leeds Businesses

Invoice finance allows you to raise money from invoices that have already been issued to your customers. When payment terms extend to thirty, sixty or ninety days, your cash flow may become strained, especially if staff costs, materials or overheads fall due before your invoice is settled.

Through invoice financing in Leeds, a lender advances most of the value of the invoice soon after it is issued. This gives you quicker access to funds, helping you cover day to day commitments or push forward with new projects.

We speak with Leeds companies who need to bridge a short gap in working capital, manage growth safely or reduce the pressure of late payments. Invoice finance is a proven way to achieve this. You continue running your business while the funding arrangement does the rest.

Invoice Finance Example

ACME Manufacturing Ltd has a big new job coming up. The company knows it will need to pay for extra materials and take on another member of staff to do this new job, and will only get paid when it’s finished. The business is owed £15,250 by another client for a completed job, but the invoice has payment terms of 30 days. ACME Manufacturing Ltd agrees an invoice finance deal that will give them 85% of the invoice up-front, with total fees and charges at 3%.

  • Invoice value = £15,250
  • Advance amount (85%) = £12,963
  • Fees (3%) = £458

When the company notifies the full invoice value to the lender (£15,250), the company is then able to receive an advance of £12,963 within a couple of minutes. Then, when the customer pays the invoice, the full £15,250 goes into a bank account controlled by the lender. ACME Manufacturing Ltd gets the remaining value of the invoice (£2287) minus fees (£458), so receives £1829. All invoice finance operates under this principle, but there’s a variety of different products available.

Commercial Finance

Types Of Invoice Finance

There are several ways invoice finance can work, depending on the structure that suits your operations and how you manage your customer relationships.

  • Factoring

A factoring arrangement involves the lender advancing funds and managing the credit control process. This can help businesses that want to free up time and reduce the burden of chasing invoices.

  • Invoice Discounting

Invoice discounting allows you to retain control of customer communication while benefiting from quick access to funds. It is often used by businesses that have established internal credit control processes.

  • Selective & Spot Facilities

These options give you the freedom to release funds from specific invoices rather than committing to a full facility. It is useful for irregular cash flow needs or for businesses with seasonal demand.

We explain each option and help you understand the benefits and considerations before making a decision.

Why Leeds Businesses Choose Us

We support companies across the Leeds area with experienced guidance, impartial recommendations and a straightforward approach. As a regulated credit broker, our responsibility is to help you understand the market and secure access to funding that is appropriate for your business. Lenders may pay us a commission, and this is disclosed before any agreement proceeds.

Our service is built around clarity and communication. Every conversation aims to give you a stronger understanding of invoice finance and how it may assist your business. We also help companies whose banks have been unable to support them, as we work with lenders that cover a wide range of financial circumstances.

Enquire About Invoice Finance & Factoring Leeds

If your business is exploring invoice finance in Leeds, our team can walk you through the options and explain how each facility would support your cash flow. We offer clear guidance from the outset so you can compare your choices with confidence and understand what each agreement involves.

You are welcome to speak with us about your invoices, payment terms or wider funding plans. We also arrange secured overdrafts, commercial loans, merchant card advance and other forms of business finance, which gives you room to weigh up different routes before making a decision. 

For a free quote or a straightforward conversation about your requirements, call us on 0113 518 2253 or fill in our online contact form. We are here to help your business move forwards with the right support in place.

Commercial Finance

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If you would like to know more about the products and services we offer or have any other questions then please click the button below to get in touch. Alternatively, you can call us direct on  0113 518 2253