What is Invoice Finance?
Please see our video which will help explain the concept to you.
For which companies is Invoice Finance suitable?
Invoice Finance is suitable for companies in the production, retail and service sectors with a lot of outstanding receivables and long receivable payment periods. For growing companies that require a lot of investment, Invoice Finance is an effective means of increasing liquidity. Companies under a lot of competitive pressure can extend the payment periods for their customers.
What are the benefits of Invoice Finance?
The financing facility grows in concert with revenue.
The additional liquidity makes it possible to service accounts payable more quickly and thus improve your own equity ratio and bank rating.
The rapid availability of the invoice amounts makes it possible to negotiate discounts and rebates. These savings alone can offset the Invoice Finance fee.
The Invoice Finance company can take on receivables management. This means less work for the Invoice Finance customer.
How does Invoice Finance affect the balance sheet?
Once they have been sold, receivables are no longer included on the balance sheet. The liquidity obtained as a result of the sale of the receivables can be used to reduce liabilities to suppliers, for example. This reduces both assets and liabilities on the balance sheet (balance sheet contraction) and increases the equity ratio.
What will change for my customers if I use Invoice Finance?
Each customer receives a note on its invoice informing it of the new bank details to which invoice amounts due are to be transferred in future.
How soon will I receive my money once I have submitted an invoice?
grenke generally pays within 24 hours.
Can I define the payment periods for my customers?
Yes. You can define payment periods for specific customers and we will act entirely in accordance with your wishes. The maximum payment periods may differ depending on the country.
DO I HAVE TO PASS ALL MY INVOICES TO YOU OR DO YOU JUST HANDLE THE ACCOUNTS THAT I SELECT?
grenke do not ask for all of your invoices, giving you flexibility to select which accounts you want to factor. We do ask for all invoices for the debtor we are factoring, however they do not all have to be funded.
How does receivables management work (optional)?
grenke’s professional receivables management ensures that all your outstanding invoices are processed smoothly every day. We value transparent cooperation as part of that process. Our online portal gives you round-the-clock access to your customer account, and you can use it to ascertain the current state of processing of your submitted invoices. You also retain control over what happens next. Personal support from your customer adviser in day-to-day business keeps you up to date at all times.
Who will write the invoices if I use Invoice Finance?
You continue to draw up and issue the invoices as normal.
What will happen to my trade credit insurance if I want to use Invoice Finance?
Trade credit insurance can be incorporated into the contract upon request.
CAN THE MONEY YOU ADVANCE BE USED FOR ANYTHING OR JUST TO FINANCE THE INVOICED WORK?
We do not tell you how to spend your money that we advance. We do however monitor your financial information by asking for quarterly management accounts.
Do GRENKE provide other finance products?
Yes. We offer an a range of leasing solutions, click here read more about Leasing with grenke or speak to our team today.
