Retailers get cash boost from invoice finance deal

Small and medium-sized businesses could benefit from a cash-flow thanks to new a peer-to-peer invoice finance platform from Investly.

The company said retailers in the electrical sector are often “crippled” by payment terms of 60, 90, or 120 days. It claims to offer businesses a more straightforward invoice finance option and application process, allowing payments to be received in days rather than months.

Investly said it has simplified the process and made it clear to understand what is owed. Once credit checks have been carried out, businesses can start to sell invoices to investors within two days.

Ruth Chamberlain, Investly UK country manager, said: “Long payment terms are crippling for all SMEs, but particularly those in the retail sector. They are dependent on cash to sustain and grow their business, but as they invest in products and people, they may not get money on work completed a month or 60 days ago. This is putting many businesses at risk – especially those in retail who have to deal with seasonal demand and peaks and troughs of activity.

“Investly brings together investors with growing SMEs in need of vital capital. Our concept, expertise and technology allow businesses to be the best they can be by making the invoice finance process as simple as it has ever been. After in-depth market research, we believe that this product is perfect for the retail sector, designers and all types of businesses either delivering products, or a service.”

Businesses can register their interest on the Investly website. Once the credit checks are passed, an invoice can be uploaded for sale to investors with a minimum value of £1,000. Once sold, the money is transferred to the recipient within 24 hours.

All bids will be subject to a charge of 12 per cent and a fee of one to 2.5 per cent.