How much cash will be provided by invoice financing?
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Most invoice financing lenders will provide and advance up to 85% of your invoices. There are several situations where the lender may provide you with less than an 85% advance against your sales ledger:
- At the commencement of you invoice financing agreement. The lender will not usually provide an advance against invoices that are already over 90 days old.
- Invoices that have been disputed by the client
- Invoices issued to clients that have not been deemed credit worth by the lender or that are greater than the agreed upon credit limit for the client.
- Invoices that have been issued on abnormally long credit terms (i.e. over 90 days).
- Invoices from related companies or to your company’s suppliers.
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