Cashflow Finance Solutions - Cashflow Finder

Cashflow Finder can help your business with a cashflow finance solution.

What is Cashflow Finance?
Cashflow finance is a facility which accelerates the cashflow of your business by giving you immediate access to the cash tied up in the unpaid invoices constantly owed to you by your customers. This is commonly the case where you have made the sale and issued the invoice but your customer won’t pay your invoice for 30 to 60 days. This causes cashflow stress, restricting your ability to increase sales. Cashflow finance unlocks the cash tied up in your invoices by turning credit sales into cash sales.

How does Cashflow Finance work?
Cashflow finance in essence, is quite simple. You send copies of your customers invoices to the financier, usually by email, who initially pays you 70% - 90% of the value of each invoice and the balance when your customer pays the invoice. The financier receives payments for your invoices from your customers, directly or indirectly. With most financiers, you access your account on-line to see your account balance, which customers have paid and which invoices are outstanding etc. There are two main types of cashflow finance, Factoring and Invoice Discounting.

Factoring Cashflow Finance
With factoring cashflow finance, the financier will be operating a full debtors ledger of your customers & invoices, which you can use instead of running your own detailed ledger, or you can just regularly balance your invoices to the financier’s ledger. The financier will also usually carry out some collections work to ensure that your customers pay your invoices within reasonable terms, but this is negotiable. Factoring is usually disclosed to your customers, who send their payments direct to the financier.

Invoice Discounting Cashflow Finance
Invoice Discounting cashflow finance is a finance only facility, which is not disclosed to your customers. The financier is not usually maintaining a detailed ledger of your customers & invoices and does not carry out any collections. Your customers continue to send their cheque payments to you, which you deposit to the financiers bank account or on-forward to the financier, while customer EFT payments are made to a confidential bank account controlled by the financier.