Capitalflow Single Invoice Finance Press Release

Capitalflow, Irish Specialist Business Lender, has today announced the launch of its new product, Single Invoice Finance (SIF) which allows businesses to raise finance against individual unpaid invoices. Although the basic principles are the same, unlike traditional Invoice Discounting facilities, the business does not have to finance its entire sales ledger book but can pick and chose which invoices they want to finance through the facility. 

John Mackey, Head of Sales Asset Based Lending in Capitalflow said “We have created the product in response to demand in the market for a more flexible working capital facility which allows businesses to raise finance when they chose, funded against individual invoices”.

Mackey went on to say “There is still a high degree of uncertainty in the marketplace due to Covid and which is potentially forcing business owners and managers to delay making fundamental decisions for their business like taking on additional bank credit..

We also see that the utilization of our facilities and those of other ABL providers in the market has decreased, in part due to turnover decreasing, but also due to government supports such as the warehousing of revenue liabilities and the wage subsidy scheme.

However, as we come out of the Covid, and as the economy returns to more normal trading conditions, businesses will need cash, and this is where we will see the demand for asset based lending products like Invoice Discounting and Single Invoice Finance. The crisis has really given businesses a heightened appreciation for access to working capital, and we see asset based lending as a perfect growth avenue for businesses in need of cashflow.”

According to Mackey, “The main benefit of the single invoice finance for companies is that it allows businesses to pick and choose what invoices are funded through the facility to match their specific cash flow requirements. So it’s incredibly flexible - the business doesn’t get locked into any agreements, it’s cost effective – fees only apply when the facility is used and there are no fees charged when exiting the facility. It really is an excellent way for businesses to quickly release cashflow as needed and it’s all done via our digital systems quickly and without any hassle.”

Types of Businesses suitable to Single Invoice Finance:

  • Large one-off invoices or projects that put cash flow pressure on a business.
  • Businesses with seasonal aspect to their trading
  • Highly concentrated debtors ledger whereby one debtor makes up the bulk of the ledger
  • Debtors taking additional credit terms which puts pressure on cashflow
  • Business looking to raise cash to fund growth opportunities
  • Businesses with unpredictable cash flow cycles

Capitalflow has operated since January 2016 with a highly experienced team of specialist lenders servicing Irish SMEs. To date the company has advanced facilities of over €550 million to business customers through its specialist lending products. Earlier this month Capitalflow announced new levels of finance to support the SME sectors in 2021 - €250m, including a €31 million allocation of funding guaranteed under the Credit Guarantee Scheme, low cost and flexible for businesses affected by the pandemic, aswell as a new digital platform that can be accessed through their website.