A direct lender (not a broker), Positive Cashflow Finance was founded in 2007 and bought 10 years later for £9 million by asset finance specialist 1pm Ltd, which is listed on the London Stock Exchange. With offices in Manchester and Birmingham, it mostly services clients in the Midlands and North of England.
If your company revenue is dependent on invoices, it’s probably prone to fluctuations – which can make it harder to commit to growth projects or to pay suppliers on time. Invoice finance from companies like Positive Cashflow Finance can help smooth out uneven cash flow, ensuring you have the breathing room to focus on what’s important, but it does come at a cost.
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Invoice finance is the sale of a business’s unpaid invoices to an invoice financier (such as Positive Cashflow Finance) for a payment relative to the value of the invoices.
This enables the business to get instant access to the cash it has earned when normally it would have to wait 30, 60 or even 90 days for debtors to settle invoices and for the money to appear in its bank account.
Positive Cashflow Finance options
Disclosed Invoice Finance. Access up to 85% of the value of your outstanding invoices within 24 hours. A comprehensive credit control service is included, giving you more time to speak to your customers about new business rather than old invoices. Businesses with an annual turnover of £100,000 and above can borrow £10,000 to £1 million. New start businesses are also considered. This option is usually most suited to industries such as recruitment, haulage, manufacturing, printing and engineering.
Confidential Invoice Discounting. Borrow up to 85% of your sales ledger. With this option, your credit control procedures remain in-house so your customers are unaware of Positive Cashflow Finance’s involvement. This is usually most suited to large businesses with an annual turnover of £500,000 and above, that are profitable and can demonstrate that they have the financial processes in place to run the credit control function efficiently. Confidential facilities are available to businesses that want to borrow between £100,000 and £1 million.
Positive Plus. This is an “over-advance”, designed to work alongside your invoice financing facility. It is a short-term business loan that is usually used for buying in materials or staff in preparation for an expected period of increased sales.
Borrow up to 80% of the value of your invoices. The amount you borrow is directly linked to the value of your invoices.
Personal service. Positive Cashflow Finance underwrites each advance individually.
Fast funding. Receive the money within 24 hours of being approved.
Confidential option. You can choose to collect the debt yourself, so your customer is unaware of Positive Cashflow Finance’s involvement.
Borrow alongside invoice financing. Positive Plus allows you to take out a short-term loan alongside invoice financing, in preparation for a peak sales period.
The fee you pay to Positive Cashflow Finance will vary depending on factors like the amount of funding you apply for and the turnover of your business.
How does it work?
You provide the goods or services to your customer and invoice them as usual.
You send the invoice details to Positive Cashflow Finance, either electronically or by post.
It will advance up to 85% of the invoice value to your business within 24 hours.
It will then collect the outstanding invoice payment.
When the invoice is paid by your customer, Positive Cashflow Finance pays you the balance minus its fee.
With the confidential invoice discounting facility, the process is the same but you collect the debt and your customers are unaware that you have used an external company.
Is my business suited to invoice finance?
Businesses may be suited to invoice finance if they:
Provide either a service or a product.
Raise invoices to other UK companies.
Have the ability to provide evidence that the goods and/or services have been delivered in full.
Businesses are less suited to invoice finance if:
Invoices are settled using stage payments either monthly or at certain intervals during the contract.
Sale or return contracts are issued as standard.
Extended warranties are granted.
Invoices are issued in advance.
Get tailored loan quotes
Save time by checking eligibility with multiple lenders and get quotes for BBLS/CBILS and other loans.
Positive Cashflow Finance will advance up to 85% of the value of your invoices.
If you use the disclosed invoice service your customers will be made aware, as Positive Cashflow Finance will take over the collection of debt. If you would rather they didn’t know, you could consider the confidential option.
Once you have been approved, you can expect to receive the funds in less than 24 hours.
Positive Cashflow Finance services a range of industries and will consider any type of business. However, invoice financing is generally most suited to businesses with a seasonal trade, or an income that ebbs and flows.
Chris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. In his spare time Chris likes forcing his kids to exercise more.
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Businesses all over the UK face financial instability daily, which often requires outside funding. We have looked into how the state of borrowing for these businesses differs between the industry, over the years, and for the size of the business.
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