Walking Fish Invoice Finance

Walking fish invoice finance, also sometimes referred to as “selective invoice finance” or “spot factoring”, offers a flexible and short-term financing solution specifically designed for businesses that don’t require a full-fledged, ongoing factoring agreement. Imagine a business that only needs to unlock cash from a handful of invoices each month, rather than committing to financing all their receivables. That’s where walking fish finance comes in.

Instead of selling all of your invoices to a factoring company, as is common with traditional factoring, walking fish finance allows you to select specific invoices to be financed. This is particularly advantageous for businesses that have a diverse customer base, some with excellent payment histories and others less so. You can choose to finance invoices from customers who are known to take longer to pay, freeing up working capital without affecting your relationships with your more reliable clients.

The process typically involves submitting the chosen invoices to the finance provider. They will assess the creditworthiness of your customer (the debtor) and the value of the invoice. If approved, the finance provider will advance a percentage of the invoice value to you, usually between 70% and 90%, almost immediately. This provides a quick injection of cash to cover immediate operational expenses, invest in growth opportunities, or manage short-term cash flow gaps.

The finance provider then takes on the responsibility of collecting payment from your customer on the invoice’s due date. Once the customer pays the invoice, the finance provider will remit the remaining balance to you, minus their fees and interest charges. These fees are typically calculated as a percentage of the invoice value and are charged for the duration the invoice remains outstanding. The total cost is often slightly higher than traditional factoring due to the selective nature and increased risk for the lender, but this is offset by the greater control you retain over your customer relationships and the reduced commitment.

Walking fish finance is a good option for businesses that:

Have fluctuating cash flow needs.
Only require occasional invoice financing.
Want to maintain control over their customer relationships.
Have a mix of customers with varying payment terms.
Are seeking a short-term, flexible financing solution.

However, it’s crucial to carefully evaluate the fees and interest charges associated with walking fish finance to ensure it’s the most cost-effective solution for your specific needs. Comparing offers from multiple providers is recommended to secure the best possible terms.