How Single Invoice Finance Helps A Small Business With Cashflow

Dr P Singh director of Cash for Invoices Limited – the single invoice finance specialist, explains


The Problem

A small business’s ideal gift would be making, selling, and then collecting the cash on its products before it has to pay its creditors. It would not need to worry about raising money, paying it back or paying interest or dividends. Its trade creditors and its customers would in effect be funding (gifting) the business with cash flow.

Most companies need to spend money to buy stocks and invest capital in debtors, who, in some cases, will not pay for months – far later than trade creditors need to be paid. For most companies therefore, working capital represents an investment.

Companies need to also pay overheads such as salaries, rent, or VAT, or fulfil larger-than-usual purchase orders.

How Can Businesses Meet Occasional Needs For Cashflow?

Single Invoice Finance:  How It Works

The company in need of cash agrees to “sell” an invoice (due to be paid by one of its customers) to a buyer, such as Cash for Invoices Limited.  The buyer will usually check that the debtor agrees to the sale and other terms of the purchase.  Once that assurance is given then the buyer will advance around 80-90% of the value of the invoice.

The buyer is really only interested in the credit risk of the debtor not its seller, which can be of a big benefit to start ups or those with poor credit ratings.

The cost, terms and conditions, and features of single invoice finance vary, so it’s worth doing your research.

Helping Small Businesses Pay Their Supplier Invoices Using Single Invoice Finance

Perhaps uniquely, Cash for Invoices Limited will also help businesses that are finding it difficult to pay one of their supplier invoices.  They will pay the supplier and then arrange for the small business to pay Cash for Invoices Limited – up to 60 days after the invoice payment date.