Export Invoice Finance

As a UK business looking to expand into global markets, you know that exporting can open up exciting new growth opportunities. However, the unique challenges of international trade, such as extended payment terms, currency fluctuations, and customer insolvencies, can also strain your cash flow and operational finances.

And at Clifton Private Finance, we can help facilitate export invoice finance solutions:

• Access up to 95% of invoice value within 24 hours
• Flexible options: factoring, discounting, and spot factoring
• Business finance options also include asset-based lending and asset finance
• Grow your finance facility alongside your business
• Optional bad debt protection
• Tailored solutions to UK Export Invoice Finance for businesses

  See your Export Invoice Funding Options »

How Export Invoice Finance Works for UK Exporters

Export invoice finance allows you to unlock the capital tied up in your unpaid overseas invoices. Here's how it typically works for UK businesses:

• Complete an Export Order: You fulfil an order for an international customer and issue them an invoice.
• Receive a Quick Advance: You submit the invoice to your export finance provider, who will advance you up to 90% of the invoice value, often within 24 hours.
• Manage Currency Risks: Many providers offer foreign exchange options to help mitigate the impact of exchange rate fluctuations on your profit margins.
• Get Paid When the Invoice is Settled: Once your overseas customer pays the full invoice, you'll receive the remaining balance, minus the provider's fees.

This rapid injection of working capital ensures you can:

• Cover critical operational costs, such as supplier payments, freight charges, and staff wages, without delay
• Maintain a healthy cash flow while waiting for distant customers to settle their invoices
• Invest in growth opportunities, like expanding your product range or entering new export markets

 See your Export Invoice Funding Options » 

Key Benefits of Export Invoice Finance for UK Exporters

• Improved Cash Flow: Say goodbye to lengthy payment terms and unpredictable delays from overseas customers. Export finance unlocks the funds tied up in your invoices, keeping your international operations running smoothly.
• Currency Risk Management: Many providers offer foreign exchange options to shield your margins from volatile exchange rate fluctuations, giving you peace of mind when trading globally.
• Credit Control Assistance: Some export finance solutions include outsourced credit management, freeing up your team to focus on core business activities while the provider handles collections from international clients.
• Scalable Funding: As your export business grows, your finance facility can expand to match your needs, without the hassle of constant renegotiation.
• Bad Debt Protection: Several export finance providers offer insurance against non-payment, protecting your company from the impact of customer insolvencies abroad.

Overcoming Hurdles in the UK's Export Landscape with Invoice Finance

Brexit and New Trade Barriers

The UK's exit from the European Union has introduced new customs procedures, paperwork, and potential delays for British businesses selling goods and services abroad. Export invoice finance can provide the working capital needed to adapt to these changing regulations, ensuring your international operations run smoothly despite the added complexity.

Currency Fluctuations and Exchange Rate Risks

Volatile exchange rates can significantly impact the profit margins of UK exporters. Many export invoice finance providers offer foreign exchange options, allowing you to secure favourable rates and protect your bottom line from currency fluctuations.

Extended Payment Terms from Overseas Customers

It's common for international customers to demand longer payment periods, which can strain your cash flow. Export invoice finance bridges the gap between completing an order and receiving payment, keeping your UK operations funded while you wait for distant clients to settle their bills.

Navigating Unfamiliar Legal and Regulatory Environments

Selling to customers in new international markets often requires navigating complex legal and regulatory frameworks. Some export finance solutions include credit management services, where the provider handles tasks like credit checks, collections, and dispute resolution on your behalf, freeing up your team to focus on growing your export business.

Mitigating the Risk of Non-Payment

The threat of customer insolvencies or non-payment is a significant concern for UK exporters. Several export finance providers offer bad debt protection, shielding your company from the financial impact of overseas clients failing to settle their invoices.

 See your Export Invoice Funding Options »

Case Study: Securing Export Invoice Finance for a London-Based Manufacturer

Challenges

• High Concentration of Debt: The reliance on a single Swiss debtor increased the risk for lenders.
• International Debtor: The overseas location of the debtor ruled out traditional high street financing options.
• Complexity: The unique structure of the invoicing terms required a specialized approach.

Solution

Through our extensive network, we connected the client with a niche lender experienced in handling international debtors. To mitigate risk, we secured a bad debt protection insurance policy, safeguarding against potential non-payment from the primary overseas debtor.

Read the full case study here     

Unlock Global Growth with Tailored Export Invoice Finance

At Clifton Private Finance, our expert brokers understand the unique challenges faced by UK businesses venturing into international markets. We'll work closely with you to design a bespoke export finance solution that addresses your specific requirements, whether you're a small, family-run exporter or a large, established multinational.

Our independent, whole-of-market approach ensures you get the most competitive rates and terms, giving you the financial agility to seize opportunities overseas and stay ahead of the competition.

 See your Export Invoice Funding Options »

FAQs

How quickly can I access funds through export invoice finance?

 Many providers can advance up to 90% of the invoice value within 24 hours of receiving the paperwork, subject to their terms and your agreement.

Can I use export finance for both domestic and international invoices?

Yes, most UK-based export finance solutions accommodate both domestic and overseas receivables, helping you manage cash flow across your entire customer base.

Does export invoice finance include bad debt protection?

Yes, several providers offer insurance against non-payment from international customers, shielding your business from the impact of customer insolvencies abroad.

How does export finance help manage currency risks?

 Many export finance services include foreign exchange options, allowing you to secure favourable exchange rates and protect your profit margins from volatile currency fluctuations.

Is export invoice finance suitable for small or medium-sized UK exporters?

Can export invoice finance be used to fund the purchase of new equipment or vehicles for my export operations?

Yes, some export finance providers also offer asset-based lending, allowing you to leverage the value of your company's equipment, machinery, or fleet to secure additional funding for international expansion.

How does export invoice finance differ from traditional bank overdrafts or loans for UK exporters?

Unlike fixed-term bank loans, export invoice finance is a more flexible, short-term solution that scales with your business. You only pay for the funds you use, and the facility can be increased as your export sales grow, without the need for constant renegotiation.