Invoice Finance Grimsby

Invoice Finance Grimsby

Invoice Finance in Grimsby helps businesses unlock cash tied up in unpaid invoices, supporting steady cash flow and smoother day to day operations. At Shadowfax Funding Solutions, we arrange invoice financing for businesses that want faster access to working capital without waiting for customer payment terms to end.

Invoice finance, sometimes referred to as invoice factoring or invoice financing, allows businesses to release funds from invoices they have already issued. This approach helps cover costs, pay suppliers on time, and invest in growth while maintaining control over cash flow.

How Invoice Finance Supports Cash Flow

Invoice finance works by advancing funds against invoices raised for completed work. Once an invoice is issued, a lender can release a large percentage of its value shortly afterwards. When the customer pays the invoice, the remaining balance is passed on to the business, minus agreed fees.

This type of funding is well suited to businesses in Grimsby that invoice other businesses and experience long payment terms. It provides more predictable cash flow and reduces the pressure caused by delayed payments.

 

Choosing The Right Invoice Finance Setup

Invoice finance can be structured in different ways depending on how a business operates. Some businesses choose full invoice factoring, where all invoices are funded, while others prefer selective invoice finance or spot factoring, allowing them to choose individual invoices to release funds from. 

These flexible options suit businesses that want control over how much funding they use and when. Whether financing all invoices or just selected ones, invoice finance helps improve cash flow without committing to traditional borrowing.

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

How Invoice Finance Helps Grimsby Businesses

Businesses using invoice finance in Grimsby benefit from quicker access to funds, improved cash flow stability, and the ability to plan with greater confidence. It reduces the strain of waiting for customer payments and can support growth during busy periods or when taking on larger contracts.

Shadowfax Funding Solutions provides clear, impartial advice, helping businesses understand their options and choose a solution that fits their needs. We focus on transparency, with no hidden charges and straightforward guidance throughout the process. 

Getting Started

Businesses in Grimsby interested in invoice finance can request a free quote from Shadowfax Funding Solutions. Our team is available to explain the options available and discuss other funding solutions where appropriate, including secured overdraftsasset and equipment finance, or commercial loans

For expert support with invoice finance in Grimsby, call us on 0113 518 2253, email us at hello@shadowfaxfunding.com, or fill in our online contact form. We help businesses access funding that supports confident decision making and sustainable growth.

Commercial Finance

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