How it works
1. When you raise an invoice, the financier then buys the debt owed to you by the customer.
2. They make a percentage of the value of the invoice (around 85%) available to you instantly.
3. The financier will then collect the full amount of the invoice directly from the customer.
4. Once they receive the money from the customer the full remaining balance is made available to you.
5. A discount charge (interest) and fees will have to be paid to the financier, the amount differs according to which finance provider you use.
You are owed £50,000.00 by your customer. The invoice financier buys the invoice for £42,500.00 (example of 85%). They will then collect the full £50,000.00 from your customer and pay you the remaining £7,500.00 when they receive the full amount. You will then pay them interest and any fees you owe.