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Invoice Discounting UK

When searching for invoice discounting, UK companies require certainty, reliability, consistency, and flexibility. At Nucleus Commercial Finance, we provide all these.

What is invoice discounting?

One of the worst habits a business can form is to ‘sell and forget’ – and it happens in every industry. Whether you’re running a manufacturing firm, a recruitment company, a print shop, an insurance company, or something else entirely, unpaid, accumulating invoices can have a significant effect on your cash flow.

Invoice discounting allows your company to obtain the value of its outstanding debts in advance of payment from customers. It transforms customer debt into working capital and can also provide insurance against delinquency. The facility allows your future plans for growth and change to proceed without hindrance or interruption.

The way it works is simple. If they choose Nucleus for invoice discounting, UK companies benefit from immediately receiving up to 85% of their sales ledger. When all contracted work is done and all customer debts are paid, we’ll return the balance – minus our agreed fee.

Invoice discounting is usually confidential, which means your customers won’t know you’re using a financier. This will, however, mean that you retain all responsibility for pursuing payments. If you don’t want this responsibility, there are other options available: if you use our disclosed factoring  service, we’ll take care of all invoice-chasing.

The invoice discounting journey

Of course, it’s vital to know what you’re signing up for first. Before signing any agreement for invoice discounting, UK companies should have maximum visibility into the process.

Let’s say you’re running a construction firm and you’re looking to release some vital funding that’s currently tied up in unpaid client invoices. Let’s also say that your finance broker has introduced you to Nucleus, or that you’ve found us through a Google search, and you’re interested in our invoice discounting services. After initial conversations, we’ll set up a meeting to determine your requirements, understand your circumstances, and the nature of your customers’ debt to ascertain if it’s fundable.

If all sides are agreed, we’ll send a surveyor out to establish the facts about your business: how it operates, how it performs, its processes, and its suitability for invoice discounting.
We’re not arbitrary about our criteria in the way that many traditional banks are, and we don’t have a checklist – but we will spend the time to ensure that we fully understand your business and that invoice discounting is the appropriate funding solution for your business.

From there, we’ll quickly arrange an internal credit discussion, and subject to approval, we’ll send you a formal offer.

The entire process takes between 1-2 weeks on average, though with complicated, higher-value deals it may take between 3-8 weeks.

From there, it’s a simple matter of us advancing the cash you need against your unpaid invoices. If your limit is set at 85% and you’re owed a £20,000 invoice, we can typically pay £17,000 immediately, and the remainder once your customer pays – again, minus our contractually agreed fee.

If you have many invoices to manage, we’re prepared for that as well. More traditional providers use a bulk-upload system where they upload cash and invoices over the course of the month – requiring month-end reconciliation. Our online eShadow portal, however, allows for a daily upload for cash and invoices. This means the database is updated on a daily basis, so it allows us to advance you money against the most current version of your sales ledger, without the need for month-end reconciliation.

Why Nucleus? 

In the pursuit of invoice discounting UK businesses often meet with disappointment and frustration: an application that’s rejected because of overly stringent criteria or an underwriter’s whims; hidden fees that sting them when they least expect them; a decision-making process that’s long, arcane, and inflexible.

At Nucleus, we endeavour to be as consistent, transparent, and flexible as possible. We see our clients as our trusted business partners: we endeavour to find working capital solutions that really work for all customers – whether they’re using invoice discounting, factoring, or another variety of invoice finance. We can even pair our invoice finance services with our other facilities, such as our secured business loans. We even offer unsecured business loans for professional practices.

We make decisions quickly, and we stay in touch once they’re made: everything we do is tailored to accommodate clients’ short and long-term funding requirements.
We’re experienced, dedicated, and professional, and we’re also highly responsive. Talk to one of our specialists to find out more about invoice discounting.

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