Cashflow Finance.
A financial boost for your business when you need it the most.
Irregular cash inflows causing you problems?
You’re not alone. Every business relies on cashflow to thrive - and every business experiences irregular cash inflows too. The good news is, Cashflow Finance exists to support businesses like yours when this happens.
A range of Cashflow Finance options at your fingertips
Whether you need funds to cover unexpected expenses or to purchase stock, want a short-term boost to pay staff wages, or even want a longer-term solution to smooth out cashflow between invoices, we can help.
Cashflow Finance Options
Invoice Financing ➜
Tax and VAT Finance ➜
Merchant Cash Advance ➜
If it’s more than just a cashflow issue and you can’t see a way forward for your business, our business recovery support might be more appropriate. Find out more. (link to jump to business recovery section of the page)
Invoice Financing
Tired of waiting for funds to come in due to unrealistic payment terms or due invoices not being settled? Benefit from a much-needed cash injection with Invoice Financing.
What is Invoice Financing?
Invoice financing is a funding solution that lets you access a percentage of the value of your unpaid invoices. Instead of waiting for payment, you can unlock the cash tied up in those invoices and access the capital you need to maintain cashflow.
How Invoice Financing Works
With invoice financing, a lender uses your unpaid invoices as collateral and lends you a percentage of their value, typically 80-90% (or more, depending on the lender's criteria). The lender charges you a fee and a percentage of the invoice value for their service. Once your client pays the invoice, the remaining balance, minus the lender's fees, is released to your business.
*Lenders will usually assess the creditworthiness of the business and its customers. While the business’s credit score matters, the creditworthiness of the customers (debtors) plays a significant role in the approval process.
Tax and VAT Finance.
Tax liabilities can put a huge strain on your cashflow, especially when they are unexpected or larger than planned for. Unlike other loans for cashflow, Tax and VAT finance options are specifically designed to help in these situations.
How it works:
VAT Loans are loans issued by certain lenders to cover the cost of your VAT Liabilities.
Once the loan is approved, the amount needed is advanced to pay the bill, and you begin repaying the lender, usually with interest and fees, based on the agreed terms.
Repayments are made typically in monthly or weekly instalments, and continue until the full amount, plus any additional charges, is cleared.
Merchant Cash Advance
If you have a smaller business, inconsistent income or a poor credit history, a merchant cash advance might be the type of cash flow finance best suited to you. Unlike a conventional loan for cashflow, the amount you can borrow and the repayment you will make is based on your business’ credit card sales. The lender will calculate your repayments based on a specific percentage of your business’ credit card sales - meaning when business is good, you’ll pay more of the loan back, and when business is slow, the repayments decrease.
Benefits of Merchant Cash Advance
Simple eligibility criteria
Available to business with poor or lacking credit history
Repayment amount varies with business profitability
Loan amounts of £5000 to £200,000
No APR’s, additional payments or late payment fees
Quick access to funds
Suitable for most sector types, especially those with inconsistent cash flow
Have a question?
Business Recovery Solutions.
Sometimes things go beyond a short term cashflow issue. If a downturn in your business has left you feeling stressed, anxious and isolated, the team here at Key are here for you. Together, we can explore the business recovery options that could help turn your business around.
Business recovery solutions are most suited when you’re:
Struggling with long term cashflow issues
Behind on payments to suppliers or other creditors
Late with tax payments like VAT, PAYE, or corporation tax
Facing issues with your bank or feeling the relationship has broken down
Being asked to repay the bank money you don’t have
Finding payments like cheques, standing orders, or direct debits are being refused
Dealing with a new bank manager from a "special situations" or "business support" unit
Let us be the key to things getting back on track.
Our team comprises brokers who have both business and banking experience, so when you come to us, we can look at your situation with both hats on. We know time is of the essence, so we’ve developed a dedicated consultation phase - which is free of charge - to allow us to understand what’s going on within your business and recommend the best way forward in a timely manner.
FAQs
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Invoice finance is available to a wide range of businesses, but there are specific eligibility criteria - your business will be assessed for eligibility during the initial application process. It can be particularly helpful for small and medium sized, or newer businesses, who might find cash flow disruptions especially hard to navigate. As your broker, we can help you find the lender best placed to support your business.
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To be eligible for a merchant cash advance your business must regularly process card payments for customers.
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Minimum card incomes will vary between lenders.
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Repayment percentages will vary between lenders and depending on agreed terms. As your broker, we will always provide bespoke comparable quotes.
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To qualify for a VAT or tax loan, your business must have an outstanding tax bill, usually for VAT, and be able to demonstrate the ability to repay the loan. Lenders will assess your financial health, business size, and creditworthiness, and government schemes may have specific eligibility criteria or repayment terms.
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Facing insolvency can be an incredibly stressful experience, and it’s easy to feel like there are no solutions to the financial challenges your company is facing. However, reaching out to an experienced financial broker such as Key can open doors to options you may not have realised were available. Whatever your situation, it’s always worth reaching out to discover how we can help.
Unsure if Cashflow Finance is for you?
If you’re not sure whether the options above are right for you, why not take a look at some of the other finance solutions we can help with.