Understanding the facility and flexibility of selective invoice finance
It’s fantastic that so many new companies are looking to alternative finance and specialist lenders such as Catalyst Finance to fulfil their cash flow needs.
Our clients tend to stay for the long-term, knowing we’re here as and when they need us, this enables us to get to know their business really well and why they need the funds. Having worked in various companies we know the conflict between seeking that next big order whilst waiting for the funds from the last happy customer, there is enough profit but not enough cash!
That’s why accelerating cash flow is so useful, being able to bring forward funds that are already due to the business rather than bringing in additional funding (some of which may not be needed but is still being paid for), the really amazing part is the flexibility and simplicity given by the ‘credit facility.’
A facility - also known as a line of credit - is the maximum amount an entity will lend to a business, the flexibility with Selective Invoice Finance is that a business can log invoices within the facility up to the maximum amount. As an example the facility could be £100k and a series of invoices £10k, £15k etc could be funded as long as they amount advanced remains within the £100k.
Catalyst Finance is great in this respect as clients only pay for the funds used, they don’t pay for the facility itself. Once the facility is set up, the process of logging invoices is very straightforward and fast, all this enables us to get funds into the businesses that really need it. After all, that’s why we’re here to 'enable' British businesses.