Let's bust some jargon
What is invoice finance?
What is invoice finance?
Invoice finance is a way of getting extra money into your business, by unlocking client invoices that haven't been paid yet. You get paid quickly, we chase the client payments.
How it works
In full, this is what's going on behind the scenes:
- If approved, we buy your sales ledger (the invoices of the contractors you've placed)
- We pay your contractor, and send you the invoice profit (minus fees) in advance
- We then take on the burden of chasing client payments
What it costs
- We take a small percentage fee per invoice (between 0.5-5%, depending on the scale of your business)
- Nothing else; we don't charge any hidden fees or charges
- It's just one fee instead of many, so it's as easy as possible for you to track
Invoice finance vs factoring vs invoice discounting
You may have seen various terms for similar kinds of things. Let us clear those up for you.
Invoice finance
This is us. In invoice factoring, the finance provider runs credit checks on your clients and collects your invoices, both necessary parts of providing finance.
Factoring
This is an alternative term for ‘invoice finance’. The two can be used interchangeably.
Invoice discounting
This is similar to invoice finance, but without the back office support. You run credit checks on clients and collect the invoices to pay the provider back. We don’t offer this, because we want to make it as easy as possible for you to manage.
Our platform
Sonovate brings together all you need for invoice finance in one place, freeing you from stress and letting you get money in like magic. Let us show you how.
