Convert sales to cash quickly and boost your working capital

Invoice Finance from First Trust Bank is an asset-based debtor finance solution to your working capital needs. With Invoice Finance, we provide your business with an upfront release of up to 90% of funds tied up in unpaid invoices. So you can stay competitive by quickly converting sales to cash, maintaining a healthy cash flow and paying your suppliers in full and on time.

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Invoice Finance features

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    Features and benefits

    • Invoice Finance quickly converts sales into cash and can release more funds than conventional sources of finance
    • You can take advantage of cash and bulk discounts from suppliers
    • Pay your suppliers promptly improving your company's business to business relations and payment reputation
    • Your business can remain highly competitive and offer attractive credit terms to consolidate and develop customers’ goodwill
    • The availability of finance to your business can grow in line with the growth in sales
    • Your relationship with customers is not affected by the Invoice Finance arrangement and your debtors are unaware of the funding facility
    • Funds that are released are used only as you need them

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    Is your business suitable?

    Your business is suitable for Invoice Finance if:

     

    • You have an average on-going funding requirement of £100,000 or more
    • You sell goods or services on credit to other businesses
    • Your business has an ongoing trade debtor’s ledger of minimum £150,000
    • You invoice after goods/services are delivered/performed
    • You have a satisfactory quality and spread of debtors
    • You have a sales ledger accounting system and appropriate credit control procedures
    • Your business has a positive tangible net worth

     

    Examples of unsuitable debts for Invoice Finance are:

     

    • Debts which are regarded as cash sales
    • Sales to individuals
    • Invoicing in advance of delivery of goods or services
    • Export debts may not be suitable if they relate to territories outside of the Organisation for Economic Co-operation and Development (OECD)

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    How it works

    1. You invoice your debtors
    2. Summary invoice details are then sent to First Trust Bank
    3. On your request, First Trust Bank will forward agreed prepayment of up to 90% of funds tied up in unpaid debtor invoices
    4. You continue to operate your usual credit procedures. Invoices are paid by debtors and these funds are lodged to a designated collection account
    5. The balancing 10% of the originally financed debt is made available to you, less First Trust Bank costs

     

     

     

    Customer example

     

    > Amount £000's

    Total Debtors 1,000
    Less: Disapproved Debts* (100)
    Approved Debts 900
    Available funds @ 90% of Approved Debts 810
    * Disapproved debts can include aged debts beyond a specified time limit, inter-company debts, disputed debts, contra balances where you are selling to your suppliers and cash sales.

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    Costs

    • A Discount Charge (similar to an interest charge) is levied on the funds used by the customer and charged monthly
    • A Service Fee (related to the on-going management of the facility) is typically charged on an annual fixed fee basis and is billed at the end of each month
    • For more details, see our price list for business customers

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Talk to us

Simply call 0345 6005 925 or visit your nearest branch. We’ll be happy to answer any questions you might have about applying for Invoice Finance.

 

 Lines open: 9am to 5pm Monday - Friday (except on bank holidays). Calls may be recorded. Call charges may vary - refer to your service provider.

Important information

Loans are subject to eligibility criteria and may be subject to an arrangement fee. Terms and conditions are available on request. Applicants must be 18 years or over. As a responsible lender First Trust Bank will only lend money based on our assessment of your ability to repay. Written quotations available on request.

 

 

Help and guidance

 

Cashflow planner tool

A financial and budgetary tool to help manage your business cashflow.

 

 

Downloads

Price list for business customers

Related Products / Services

Business Overdraft

Peace of mind that additional funds are there if you need them.

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