As investors seek to diversify risk and improve their yield in this low interest rate environment, invoice factoring can offer an innovative and appealing investment opportunity. So long as appropriate and efficient credit scoring processes are in place, an investment in invoice factoring could generate outsized returns when compared to
First Sentinel are experts on solving the short-term cashflow needs for small to medium sized enterprises.
Optimizing Cash Flow for SMEs
First Sentinel provides cashflow solutions in sectors where providers usually wait to get paid, have irregular cashflow or long payment cycles. The focus tends to be on the crash repair industry as we purchase invoices which have been approved by insurance companies – thus significantly reducing the rate of potential default. Other sectors include civil engineering and recruitment. Oftentimes, these businesses are looking to improve the management of their day-to-day cashflow, invest in new parts, equipment and technology or expand beyond their domestic market.
£86m worth of invoices purchased in 2018
First Sentinel strategically acquired invoice purchasing company Perennial Enterprises which had been successfully operating in the invoice purchasing space in Australia for over 20 years.
First Sentinel has successfully deployed £4m raised via First Sentinel Bond to scale the purchase of invoices. Under First Sentinel’s management the volume of invoices purchased has increased more than 100% with a 0% default rate.
Invoice factoring is an established form of business lending that can help certain SMEs by offering a reliable payment cycle and a better management of their cash flow requirements. Invoice factoring enables businesses to convert their accounts receivable into immediate cash, rather than having to wait to receive payment. This