BUSINESS FINANCE PACKAGES

Business Finance Packages
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Invoice Finance
Invoice finance is a great way to raise the funds from your ongoing or outstanding invoices. This can help you with maintaining your staff costs, bills and liabilities and allow you the ongoing cash to grow.

You will normally receive between 75% - 90% of your invoice value in advance.

How it normally works:
  • You raise your invoices to your client, e.g £10,000
  • You then send this to the funder (either by email or upload to the funders portal)
  • You will then receive 75% - 90% of the invoice value into your bank account e.g £9,000
  • Once the customer pays your invoice you will then receive the 25%-10% back minus their fee

Things to consider:
  • You will need to discuss with the funder if they can give you the credit limits you need to supply the client. You must always check this with the lender before you start any contract if you wish to lend against them.
  • You will normally get 90 days credit terms. This means your customer will have 90 days to pay the invoice before penalty
  • Depending on the lender, there may be a contract length e.g 12 months. BlueFund can support you to negotiate these terms
  • If you take out an invoice finance facility you will still be responsible for raising your invoices and payslips
  • Depending on the funder and what is agreed, the lender may support with your credit control 
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Payroll Finance / Recruitment Finance / Back office support
There are options for the lender to offer you full back office support allowing your payroll & invoicing to be done for you. In a lot of cases this is cheaper than getting outside agencies to do it.

Normally the funder will: 
  • Raise payslips
  • Raise your invoices
  • Issue P60s
  • Issue P45s
  • Deal with third party deductions for your workers 
  • In some cases the funder will pay your national insurance (PAYE) & VAT (where applicable) on your behalf

How it normally works:

Your timesheets will be sent to the lender by email, via their online portal, or other preferred method.  The lender will then raise invoices and payslips from the timesheet.

Things to consider:
  • Timesheets must be authorised by the client
  • Timesheets must have the worker's name
  • Timesheets must have the placement e.g the service that the worker worked out
  • Before you commit to starting a contract with a client that you ask the funder if they will fund the client

Benefits of payroll finance include:
  • Back office department completing all the day to day tasks of invoicing and payroll 
  • Can work out more cost effective that outsourcing or internal systems 
  • Can be a real benefit for small businesses to grow and have the infrastructure to take on more and more work
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Business Loans

Business loans are a great option for some businesses. There are different types of options available. Please get in touch to find out more.

Things to consider:
  • You may need to be a homeowner to get a loan 
  • Be prepared to personally guarantee the loan.
  • You many need to have trading history
  • You many need to have a set of accounts

All information above is for example purposes only, please contact BlueFund to discuss your individual company requirements.

BlueFund deals only with business funding.
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