Invoice finance instead of a loan

The challenge

A business approached Ocean Capital Exchange after receiving unsecured loan quotes from other brokers. Although a loan had been presented as an option, the owner instinctively felt it was not the right solution.

The business needed to resolve a cash-flow problem. The question was not simply whether it could borrow, but which type of funding best fitted that need.

Our approach

OCE looked beyond the existing loan quotations and sourced an invoice finance facility instead.

The facility allowed the business to release funds against eligible unpaid customer invoices, helping it access cash sooner rather than relying on the unsecured loan it had been quoted.

The outcome

The invoice finance facility solved the business's cash-flow problem. Compared with the quoted loan option, the business saved thousands in interest.

This was a different funding structure, not a claim that invoice finance is cost-free. Facility fees and funding charges depend on the lender's terms and how the facility is used.

What this case shows

A loan is not automatically the best answer to every cash-flow issue. Where money is tied up in customer invoices, invoice finance may be a better fit.

Compare the full costs, eligibility requirements and commitments of the available options, not just the headline loan interest rate. The appropriate facility depends on the business and the lender's assessment.