Invoice Finance solicitors in London and Essex
Invoice finance helps businesses to unlock money that is tied up in unpaid invoices. It is useful for businesses that wish to improve their cashflow or want to leverage their debtor balance to invest in growth opportunities.
The two main types of invoice finance are invoice discounting and factoring.
Invoice discounting is where the unpaid debts owed to a business (e.g. customer invoices) are used as collateral for a cash advance, which provides the business with a source of working capital until the debts are paid. The business will retain control of the invoicing and debt recovery process.
Factoring is where the rights in the unpaid debts are “assigned” to the factoring company in exchange for a payment. The factoring company then takes over the entire credit control process which means that the debtors (e.g. customers) will be contacted by the factoring company.
There are many reasons why businesses use invoice finance, including:
- Reducing late payments or bad debts
- Receiving a cashflow boost
- Freeing up of business resources
- Taking advantage of economies of scale e.g. volume discounting from suppliers
We advise on a range of recipients of invoice finance and can assist with the review and negotiation of the legal documentation.
Our unique selling point is that we understand what clients want from their lawyers. We will manage your transaction proactively, with careful attention to detail while never losing sight of the bigger picture.
While working with us you will have access to our strong network of other professionals such as accountants, independent financial advisers and bankers.
We offer a range of pricing options and will be happy to discuss these with you. As a client-centred law firm, we will be transparent with you about our pricing and actively manage these in line with our agreements.