Invoice Finance Hull

Invoice Finance Hull

Invoice finance in Hull helps businesses access funds tied up in unpaid invoices, ensuring smooth operations and steady cash flow. At Shadowfax Funding Solutions, we provide specialist invoice financing services to support companies in covering costs, paying suppliers, and investing in growth without waiting for invoice terms to elapse.

Invoice finance, also known as invoice factoring, is a proven method to unlock working capital. By advancing most of the value of outstanding invoicing, businesses can manage day-to-day operations while awaiting client payments.

How Invoice Finance Works

Invoice finance works by advancing funds against your invoices. Once a business raises an invoice for completed work, a lender can release a large portion of its value immediately. The remaining balance, minus fees, is paid once the client settles the invoice.

This system is ideal for companies that regularly invoice other businesses and need predictable cash flow. It helps with managing payroll, covering operational costs, or taking on new projects without the uncertainty of delayed payments.

 

Options Within Invoice Finance

Invoice finance offers flexibility for businesses with different needs. Full invoice factoring allows you to finance all invoices, while selective invoice finance and spot factoring let you choose specific invoices or customer accounts. These flexible options are suitable for businesses that know exactly how much funding they require and want control over which invoices are financed.

Whether opting for full factoring, discounting, or selective arrangements, invoice finance helps businesses improve cash flow and focus on growth.

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

Benefits Of Using Invoice Finance In Hull

Businesses using invoice finance in Hull experience faster access to cash, improved financial stability, and the ability to invest in expansion opportunities. It reduces the strain of waiting for long payment terms and can provide peace of mind during busy periods or when taking on large contracts.

At Shadowfax, we are authorised and regulated and our advice is impartial. There are no hidden fees, and we guide each client through the most suitable financing option for their business.

Support For Companies Across Hull

Businesses in Hull looking for invoice finance can get in touch with us for a free, no-obligation quote. Our team can explain the different options and advise on other funding solutions, including secured overdraftsasset and equipment finance or commercial loans.

 

Get Started

For expert advice on invoice finance in Hull, call us on 01482 699354, email us at hello@shadowfaxfunding.co.uk or fill in our online contact form. We help businesses access the funds they need to manage cash flow and support growth with confidence.

Commercial Finance

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