Bibby Financial Services Invoice Finance

Bibby Financial Services is a Liverpool-based invoice finance specialist that was established in 1982. They provide a range of invoice finance options to business of all size and sector. Bibby offers tailored solutions to the needs of their clients who can also make use of 24/7 online account management.

Business loans and invoice financing with Bibby Financial Services or other lenders are both forms of borrowing, but whereas loans involve borrowing a new sum of money, invoice financing involves borrowing against invoices owed to your own business.

No debt is created when you borrow against your own invoices. This means there’s no debt and or debt interest that it carries to be repaid. You’re simply borrowing against the money you’re actually making each day as a business.

Businesses can have a variety of reasons for needing invoice financing, but time might be one factor. Invoice financing can be a much quicker process than applying for a traditional business loan, as it takes much less time to borrow against your own invoices than it does to apply to a lender for a conventional loan.

You can use invoice financing to help improve your business, letting you invest in more hires, equipment or stock, to make it grow at a pace that suits you. Using invoice financing from Bibby Financial Services or another lender can help you do this, without having to go into debt in the first place.

Yes, Bibby Financial Services invoice financing products, like all others, will entail some fees and costs, when you seek them out. You will be expected to pay a charge, and the fee you pay will be calculated as a percentage of the value of the invoices you provide.

Invoice discounting lets you take control of the process, letting you leverage the value of your sales ledger. You simply sell unpaid invoices to a lender, and they pay cash up-front, as a percentage of the invoice value. When the full invoice comes through, the lender pays the remaining balance, minus their fee.

When seeking Bibby Financial Services invoice finance products, such as invoice factoring, a lender provides funds against customer invoices as a percentage before they are paid in full, and collects the invoice on your behalf. This helps you receive cash flow without having to wait all those weeks or months for the actual invoice.

Late payment of invoices affects many businesses across the UK. Some providers of invoice finance products, such as Bibby Financial Services and others, offer bad debt protection for businesses, otherwise known as non-recourse factoring.

If you agreed to non-recourse factoring, the lender will absorb the cost of unpaid invoices, stopping you having to pay the price, if a client fails to pay the factoring company the debts they owe. Risk is higher for the lender, so fees are high to account for this and thorough background checks will be likely.

Recourse factoring means that you take responsibility for the unpaid invoice if a client or customer fails to pay the factoring company first. This means you ultimately have to pay back the invoice value in full. As risk is low to the lender, fees will ultimately be lower.