Invoice Financing

Raise against your outstanding invoices, and let us take over the collections process.

Invoice finance is perfect for tight liquidity situations where the growth of your business is being compromised by the long payment terms extended to your customers for services/products provided. If you’ve got a strong and stable business operation, you deserve access to instant cash to relieve liquidity pressures.

case study

client

Diaspora worked with a UK-based elderly care provider that provides services to care homes run by local councils and the NHS. It currently sends carers and nursing staff to care homes, and provides a reconciliation of service hours provided and an aggregated invoice to the NHS at the end of each month. Standard payment terms are 30 days from invoice date.

problem

The company’s monthly expense and wage obligations are £125,000. By the time the company receives the payment of its invoice, as much as two months after services were provided, it will have a pipeline of invoices outstanding totalling £250,000. As a result, the company requires working capital of £250,000 at all times to ensure everything is paid on time whilst waiting on payment of its accounts receivable. The company may not be able to accept any new business unless it increases its capital, which will be difficult to achieve if all of its cash is tied up in serving its current agreement.

solution

By leveraging the power of invoice finance, the company was able to free up liquidity and use cash to grow the business. Through this solution, the company was able to upload its monthly invoice on the date of issue to the DiasporaFinance platform, which enabled it to access instant liquidity to pay wages, rent, and accept new business.