What is Invoice Finance?

Summary

This guide explains the Invoice Finance option within Sage 50 Accounts v29.

Description

If you have revenue tied up in unpaid invoices and struggle with short term cashflow, you can free up cash from your unpaid invoices using invoice finance.

With clients taking up to 90 days to pay their debts, invoice finance is a good way to ensure you have enough cash to pay suppliers and invest in growing your business.

How does invoice financing work?

When you issue an invoice that has payment terms, those funds are then held by your customer for a preset number of days, either 14, 30, 60 or 90 days. This means that you have already spent money to provide the goods or services but won't get anything back until the term is completed.

Invoice finance solves this problem by giving you cash advances based on the outstanding invoices. You can choose which eligible invoices you would like to fund and how long you would like to fund them for, and once approved, the funds are then paid into your nominated bank account. You can then track this via your Sage 50 Accounts software.

Satago advance up to 90% of the total invoice value. This means that money is available to invest in materials or other business costs before the customer pays the balance.

Types of Invoice Finance

There are two types of Invoice Finance available with Satago.

Selective invoice finance - this allows you to request finance for individual invoices
Full invoice finance - this allows you to receive finance for all eligible invoices

It is simple to move between these types of finance as your business requirements change.

Here's a table which explains the difference between Single Invoice Finance and Full Invoice Finance.

Single Invoice Finance Available in Version 29 and above	Full Invoice Finance Available in Version 29.2 and above.
No fixed contract	12 month contract with monthly membership fee
Choose individual invoices to fund	Fund all eligible invoices
Disclosed - Satago contact each customer directly for verification	Confidential - Satago doesn't contact every customer, only verifies a sample
Priced individually per invoice	Clear and simple pricing agreed in advance
Invoices must be within agreed payment terms	Fund an invoice up to 120 days past invoice due date

Frequently Asked Questions

My business isn't in trouble, can I still access Invoice finance? >

There is a historic stigma that Invoice Finance is for businesses in trouble. Most companies use Invoice Finance as a tool for growth. Indeed over 40,000 businesses of all shapes and sizes in the UK currently benefit from the extra working capital these facilities provide.

Is this suitable if I don't want to fund all of my invoices? >

Satago offer Single Invoice Finance meaning you can pick and choose which invoices you want to fund, when you want to, giving you fully on demance finance to suit your business needs.

Will my business be tied into a contract? >

Absolutely not. Satago don't impose any minimum or maximum term for Single Invoice Finance, you are free to come and go as you wish.

Flexible funding, with no contract. Is this going to be expensive? >

It is probably less than you might think. With Sarago you can be assures of fair and transparent pricing with one simple agreed fee and no hidden charges.

Is it difficult to set up and manage? >

With Invoice Finance now embedded within Sage 50 Accounts it is now easier than ever to manage your facility.

How to sign up?

You can find out how to sign up and the criteria required by opening the set up guide >

Want to find out more?

You can look at Satago's digital content on invoice finance and how it works. Visit Satago >

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Solution Properties

Solution ID: 230109163221357
Last Modified Date: Tue Aug 22 15:32:44 UTC 2023
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What is Invoice Finance? - UK only