Invoice Finance and Asset Based Lending

The factor that links these two types of finance is that the lending is not secured by your residential or commercial premises. This means that your prime collateral is not tied up and can be protected, or used for other purposes.

The two types of invoice finance are invoice discounting and factoring. These schemes provide working capital advanced against the value of book debts. Dependant on the type of financing used, the collection of money is undertaken by either the borrower or the lender. Funds advanced typically range from 50% to 80% of debtors, although higher amounts can be obtained, depending on the provider’s assessment of the overall sales ledger.

In recent times there has seen a large growth in invoice funding which is no longer perceived to be ‘borrowing of the last resort’. Traditional overdraft facilities frequently have been reduced or removed by lenders with the borrower forced to replace them with this type of finance.

Asset finance is an ideal way to fund equipment, plant and machinery. Almost anything can be financed this way, from a cooking range - to a jumbo jet!

Options vary from leasing to lease purchase and hire purchase. As with invoice finance, there is a myriad of providers & finding the appropriate lender can be difficult. We work with a panel of providers and partners to ensure that you receive the best terms available in the marketplace.