Grenke Invoice Finance

Grenke was originally founded in Germany in 1978 leasing office equipment to small businesses. Today, Grenke operates in 32 countries worldwide, with a UK arm that launched in 2002. Grenke provides a number of funding solutions various types of invoice finance that are available to small and medium-sized UK businesses.

Grenke invoice financing facilities are just one form of invoice financing you might wish to seek, to take existing invoices and leverage them to generate sufficient levels of cash to borrow for your business’s spending purposes.

Perhaps you’re a business on the verge of a growth phase, but loans are hard to come by, and time is of the essence for you. Invoice financing with Grenke or another lender can help free up cash as a percentage of the value of your own invoices, for use in buying new equipment for your business or expanding operations.

Invoice financing facilities don’t actually involve you taking out new debt for borrowing. As your invoices are presented to either a lender or a factoring company, they offer you a percentage of the invoice sums as an up-front cash injection, without having to seek a line of credit or a loan.

You can use invoice financing precisely because of late payment – businesses with healthy turnover often suffer financially when clients fail to submit the invoices they owe in a timely way. Invoice financing can provide you cash flow ahead of receiving invoices, so you don’t suffer from tight cash flow.

One form of invoice financing is factoring, in which you sell your invoices to a factoring company via your lender. The factoring company chases up the invoices on your behalf, and you are sent an agreed percentage of that loan, minus any lending fees from your provider.

Invoice discounting is an alternative form of invoice financing, if you wish to leverage your sales ledger in a more discreet way. This is because discounting puts you in charge of chasing up on invoices, while still receiving cash injections, without your client having to know about the arrangement.

Yes, but only if you had specifically signed a recourse agreement with your lender. This means you absorb the risk and must repay the value of an invoice, if your clients fail to pay.

Non-recourse agreements with your lender mean the risk is shifted onto the lender themselves. You can continue to borrow against the value of invoices, while the lender absorbs the costs of a failed invoice payment. However, greater risk for the lender means fees will be higher, to compensate.

Our partner, Touch Financial is a suitable platform to help you compare Grenke invoice finance facilities with those of other lenders. Follow the instructions at the top of the page to get started. A specialist consultant will be able to guide you towards finding the lender best-suited to provide you with invoice financing in a way that’s affordable and prompt for you.

Not necessarily, but small businesses might struggle to meet certain criteria set by Grenke invoice financing facilities. This is because your business might lack the sufficient turnover they require, or might be too inexperienced be considered risk-free enough to lend to.