Single Invoice Finance (SIF) is a working capital facility which allows you raise finance for your business against individual unpaid invoices. Unlike traditional Invoice Discounting facilities, to avail of SIF, the business does not have to sell its entire sales ledger book. Through an SIF facility, you can access funds as and when your business requires an injection of cash by using the facility on an invoice to invoice basis.
What are the advantages of Single Invoice Finance?
- Improved cash flow for the business – fast access to cash that is tied up in unpaid invoices
- Fast Access to Cash – once the facility approved you request funding against specific invoices and get your cash payment within 24 hours
- Flexible funding – facility allows you to pick and chose what invoices are funded through the facility to match the specific cash flow requirements of your business
- Cost Effective – fees only apply when facility is used,
- You Maintain Control – you continue to manage the credit control function and manage all customer relationships
- Minimal Paperwork – process is quick and hassle free, all done electronically.
- No termination fees when exit the facility
What Businesses are suitable to use Single Invoice Finance?
- Businesses with large one off invoices that cause cash flow pressure can be funded through the facility
- Businesses with seasonal aspect to their trading
- Businesses with a highly concentrated debtors ledger – for example, where one debtor makes up the bulk of the ledger and this type of ledger is generally not suited to a traditional invoice discounting facility
- Businesses with debtors with additional credit terms, which puts pressure on cashflow
- Growing businesses looking to raise for cash to fund growth
- Businesses with unpredictable cash flow cycles
How it works:
- You decide what invoices you want to finance through the facility
- Copy invoice and all relevant back up documentation (PO, POD etc) is electronically submitted through our online system
- Invoice balance is confirmed by the debtor
- Invoice is approved for funding
- Up to 90% of the value of the invoice is paid to you immediately
- When the debtor pays the invoice, the balance (10%) net of fees is paid back to you
- Minimum invoice value €25,000
- High quality / rated debtors, or credit insurance in place
- Invoice is contractually complete – service or product has been fully delivered
- Debtor confirms / verifies invoice being funded.
- Debtor confirms invoice being funded will be paid to specific designated bank account details
To find out more email John Mackey at Jmackey@capitalflow.ie or go to capitalflow.ie/single-invoice-finance