This comparison service is provided by Touch Financial Support Ltd.
Touch Financial is a leading UK invoice finance broker which works to help businesses find the right products for their needs. They compare invoice financing services from a range of different lenders, aiming to find the one that best suits the needs of their business customers. Touch Financial consultants look at the profile of each business, including cash flow, accountancy needs, and any other specific requirements, to match them with the most appropriate invoice finance provider and product. Touch Financial is a trading name of SFP Brokers Limited, authorised and regulated by the Financial Conduct Authority (FRN: 727220). Touch Financial is a broker not a lender.
Catalyst Finance Invoice Finance FAQs
Who is Catalyst Finance?
Catalyst Finance is a commercial loan specialist that was established in 2012 and offers a range of funding solutions via intermediaries such as Touch Financial. Based in the Gloucestershire town of Stroud, Catalyst provides, among other options, selective invoice financing to SMEs across the UK.
What is invoice financing?
Invoice financing allows your business to leverage its own invoices and borrow against them through a lender such as Catalyst Finance.
What are the benefits of invoice financing?
Rather than having to file a lengthy application for a loan, invoice financing can be much quicker to approve, if you have sufficient invoices to borrow against. It offers a near-immediate cash injection for your business without it having to go into debt.
Why isn’t invoice finance a form of debt?
Invoice financing with Catalyst Finance or any other lender isn’t a form of debt, as it’s actually a sale. You can sell your invoices, with cash flow generated at a sizable percentage of their value, helping you avoid having to create new debt.
Are there any fees or costs to pay?
Yes, lenders will expect some charge or fee to be paid, as a small proportion of the sums you wish to borrow against the value of the invoices you provide. These fees are often small and paid on a weekly or monthly basis.
What if I don’t get invoices paid properly?
Businesses can turn to invoice financing precisely because of late payment of invoices, to begin with. Through invoice discounting, you leverage your sales ledger, and a lender such as Catalyst Finance will offer you a cash injection, as a proportion of an unpaid invoice’s value.
How do I find the best invoice financing for my business?
Each business is different - if you’re a small business, for example, you might need to search for a lender willing to provide invoice finance despite lower turnover or less time in operation as a business. Our partner, Touch Financial, can help put you in touch with a lender best-suited to your business needs. Follow the instructions at the top of this page to get started.
What is invoice discounting?
Lenders provide invoice discounting facilities as a more discreet means of borrowing against your invoices, as you are ultimately responsible for administration of your sales ledger. It is ideal, if you would rather avoid a client from knowing about your plans to leverage invoices for cash flow.
How does it differ from invoice factoring?
Lenders such as Catalyst Finance will put you in touch with a factoring company, to whom you sell your invoices. The factoring company ultimately takes charge of making sure invoices come through from your clients at the appropriate time.
Can I be liable if invoices aren’t paid?
Yes, if you specifically agree to a recourse agreement with your factoring company. This means you absorb the risks and the costs, if a client fails to pay the invoice. Non-recourse agreements mean the onus is on the third-party lender to absorb the costs. Due to the higher risk for the lender, fees will be higher with non-recourse agreements in play.
Services offered by this provider may change over time. Always check Ts&Cs.