What are the Terms & Conditions for Invoice Finance?

When a company goes for invoice financing or invoice lending, it has to be prepared to meet certain conditions. These conditions include the following:

  1. A company is an existing business with an existing loan facility with a bank or other financial institution.
  2. The business has its own account with the bank or any other financial institution in the UK.
  3. Businesses can secure loan amounts up to 50% of their current working capital or EBITDA.
  4. The business credit is considered not junk or below investment grade.
  5. Business is not into any criminal activities, unsafe practices, and activities which are a direct threat to public health or the environment.
  6. The customer who has defaulted his purchases from your business is not a defaulter of another company's invoice finance.
  7. If a company does not supply the goods as per the terms and conditions of the agreement, it will have to pay a penalty to the financier.
  8. The company should be prepared to provide its financial statements from the last three years which have been audited.
  9. The goods should be of good quality and genuine products which are purchased from credible suppliers.

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