FAQs | Invoice Factoring Solutions | Zodeq
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Speak to us today 01244 617 087

Are you in recruitment and unsure of how invoice finance and back office support could benefit your business?

Please take a look at our recruitment FAQs here >

What is invoice finance?

Invoice financing is a process which involves releasing cash which is tied up in as yet unpaid invoices. The invoice finance company advances the cash (usually 80-90% of the invoice value) as soon as the invoice is raised.

This form of financing is quick and easy to access. It is incredibly flexible and can offer a great alternative to business loans or using overdraft facilities.

Invoice financing can be the perfect solution to peaks and troughs in cash flow caused by late paying clients.

What are the benefits of asset based lending?

Asset based lending can be a quick and convenient way to access funds. With asset based lending we will free up cash to your business which would otherwise be tied up in property, equipment or other assets owned by the business.

Interest rates are typically lower than the rates on unsecured loans and repayment can be arranged on a flexible basis. It can be a really straightforward way to secure funds when a cash injection into the business is needed.

What is the difference between invoice financing and invoice discounting?

With both approaches cash is advanced to the business against invoices which have been raised for products or services. The difference is that with invoice financing Zodeq takes care of credit control, chasing and collecting payment on behalf of the client. With invoice discounting the business continues to manage its own credit control.

Some organisations prefer invoice discounting because they remain in control of their credit control and their clients will be unaware that they are accessing an invoice discount service.

What type of business uses invoice finance or invoice discounting?

Invoice financing and invoice discounting can be used by any type of business. Our clients come from a wide range of industries, (recruitment, engineering & manufacturing, construction, warehousing & distribution, haulage and printing).

Invoice financing, or factoring as it is often referred to, has grown in popularity, many business owners and managers find it offers a practical method for managing cash flow. It is a flexible approach to finance and it is often quicker and easier to access funds this way than through a traditional business loan or overdraft.

Typically, businesses use invoice financing or discounting for its flexibility and to ensure cash flow comes into the business as it is required.

Will customers know I use invoice financing services?

If you choose our invoice financing then your customers will know that you are using our services. This is because they will make the payment to Zodeq and if their payment is late we will fulfil the role of credit control. You can rest assured that this will be carried out in a professional manner.

Sometimes clients are concerned about their customers knowing they are accessing a finance solution. However, factoring and invoice financing are now commonplace in business

How quickly will I receive my funds?

The process is quick and straightforward. As soon as the invoice is raised we will start processing your advance. Whatever your invoice terms this can make a huge difference to cashflow within a business.

Are all businesses eligible for invoice discounting?

The simple answer to this question is no, as with any form of finance we do have certain criteria which needs to be met. However, we are flexible in our approach and we will assess each client individually. We work with businesses from a wide range of industries and can help brand new start-up businesses as well as more established businesses.

Invoice financing sounds great but what costs are involved?

  • Service fee
  • Discount charge
  • One time set up fee

Speak to us

Give our team a call today to discuss your finance or back office requirements

01244 617 087