Invoice Finance

Stay competitive by releasing up to 90% of the value of your invoices.

Convert sales to cash quickly and boost your working capital

Invoice Finance from AIB (NI) is an asset-based debtor finance solution to your working capital needs. With Invoice Finance, we provide your business with an upfront release of up to 90% of funds tied up in unpaid invoices. So you can stay competitive by quickly converting sales to cash, maintaining a healthy cash flow and paying your suppliers in full and on time.

Invoice Finance features

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Features and benefits
Invoice Finance quickly converts sales into cash and can release more funds than conventional sources of finance

You can take advantage of cash and bulk discounts from suppliers

Pay your suppliers promptly improving your company's business to business relations and payment reputation

Your business can remain highly competitive and offer attractive credit terms to consolidate and develop customers’ goodwill

The availability of finance to your business can grow in line with the growth in sales

Your relationship with customers is not affected by the Invoice Finance arrangement and your debtors are unaware of the funding facility

Funds that are released are used only as you need them

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Is your business suitable?
Your business is suitable for Invoice Finance if:

You have an average on-going funding requirement of £100,000 or more

You sell goods or services on credit to other businesses

Your business has an ongoing trade debtor’s ledger of minimum £150,000

You invoice after goods/services are delivered/performed

You have a satisfactory quality and spread of debtors

You have a sales ledger accounting system and appropriate credit control procedures

Your business has a positive tangible net worth

Examples of unsuitable debts for Invoice Finance are:

Debts which are regarded as cash sales

Sales to individuals

Invoicing in advance of delivery of goods or services

Export debts may not be suitable if they relate to territories outside of the Organisation for Economic Co-operation and Development (OECD)

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How it works
You invoice your debtors

Summary invoice details are then sent to AIB (NI)

On your request, AIB (NI) will forward agreed prepayment of up to 90% of funds tied up in unpaid debtor invoices

You continue to operate your usual credit procedures. Invoices are paid by debtors and these funds are lodged to a designated collection account

The balancing 10% of the originally financed debt is made available to you, less AIB (NI) costs

Customer example

> Amount £000's

Total Debtors 1,000
Less: Disapproved Debts* (100)
Approved Debts 900
Available funds @ 90% of Approved Debts 810

* Disapproved debts can include aged debts beyond a specified time limit, inter-company debts, disputed debts, contra balances where you are selling to your suppliers and cash sales.

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	> Amount £000's
Total Debtors	1,000
Less: Disapproved Debts*	(100)
Approved Debts	900
Available funds @ 90% of Approved Debts	810

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Costs
A Discount Charge (similar to an interest charge) is levied on the funds used by the customer and charged monthly

A Service Fee (related to the on-going management of the facility) is typically charged on an annual fixed fee basis and is billed at the end of each month

For more details, see our price list for business customers

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Talk to us

Simply call 0345 6005 925^† or visit your nearest branch. We’ll be happy to answer any questions you might have about applying for Invoice Finance.

^† _{Lines open: 9am to 5pm Monday - Friday (except on bank holidays). Calls may be recorded. Call charges may vary - refer to your service provider.}

Important information

Loans are subject to eligibility criteria and may be subject to an arrangement fee. Terms and conditions are available on request. Applicants must be 18 years or over. As a responsible lender AIB (NI) will only lend money based on our assessment of your ability to repay. Written quotations available on request.