Owning and running your own business can be a rewarding thing to do. There’s absolutely nothing better than knowing that the hard work you are putting in is being converted to satisfied customers and a healthy net profit.
However, out of all aspects of the business, cash flow is a difficult one to manage. It is likely that there will be moments within your business career where you will find that you and your business is running dry, with large amounts of invoices due further down the line. This is where selective invoice funding can help you.
Unfortunately for businesses and business owners, life doesn’t wait around for outstanding invoices. Furthermore, you may well find yourself in a position where the amount of money you have leaving the business far surpasses the amount you put aside as a security buffer. If this is the case, then Selective Invoice Finance might well be the product that gives you the breathing space that you need.
What is Selective Invoice Finance?
Selective Invoice Finance is a method of releasing any equity held within outstanding business-to-business invoices. Suitable for those suffering from short-term cashflow difficulties, such a service can be particularly useful if you know that you have a significant amount of money lying in outstanding invoices and you have outgoings that would otherwise run the risk of remaining unpaid.
Such a service gives you the ability to maximise your company’s working capital by freeing up cash tied up in outstanding invoices.
How does Selective Invoice Financing work?
At GapCap, the process works by registering through our onboarding system – normally, you will receive an offer of equity release within 24 hours. If you are happy with the terms set forward by GapCap, then you are then able to choose which debtors you would like to add to the scheme.
You are then invited to upload any and all invoices that you would like funding. At this point, GapCap will give you an advance payment of up to 85% of the invoice, once it has been validated as being genuine. The remaining amount of money, minus a fee, will be rebated upon full repayment of the invoice from your debtor.
What do I need to do to be eligible?
To be eligible for Selective Invoice Finance, your business needs to be registered as a UK limited company, and you must have B2B invoices worth over £3,000. The terms for payment on your invoices must be between zero and 120 days for payment.
Unlike the case in factoring, you are not tied up to a contract. Our service is flexible and contract-free, giving you the freedom to use the facilities as far as you need to. You also can pick and choose which of your invoices are funded through us. You do not need to fund your entire sales ledger as you can use the service on a pay-as-you-go basis.
If you believe that Selective Invoice Finance is the right product for you and your business, then feel free to get in touch and receive a comprehensive, independent quote based entirely on your circumstances and your requirements.