26 Mar 2021 | 04.21 pm
Capitalflow Launches Single Invoice Finance
€31 million in low-cost Covid-19 Credit Guarantee Scheme funding available
26 Mar 2021 | 04.21 pm
Capitalflow allocated low-cost Covid-19 Credit Guarantee Scheme funding for SMEs
Capitalflow has operated since January 2016 with a highly experienced team of specialist lenders to Irish SMEs. To date the company has advanced facilities of over €550 million to business customers through its specialist lending products, including leasing, hire purchase, refinancing, invoice discounting and property finance.
This month, Capitalflow has been allocated an initial €31 million in low-cost Covid-19 Credit Guarantee Scheme (CGS) funding for SMEs that have been impacted by Covid-19.
The scheme, made available by the Department of Enterprise, Trade and Employment and operated by the Strategic Banking Corporation of Ireland (SBCI), is a financial solution that will see Capitalflow backing businesses to fuel the economic recovery, allowing businesses to preserve jobs and create future growth.
As the largest Credit Guarantee Scheme in the history of the state, it enables Capitalflow to offer competitive funding to new and existing business customers. The State Guarantee will allow businesses to get through this uncertainty and provide them with an opportunity to adapt and grow their businesses.
The €31 million in CGS funding is just part of €250 million in new funding that Capitalflow is launching to support the SME sector throughout 2021. New and existing customers can apply for funding online on the new Capitalflow website, and the support team is always on hand and ready to help guide applicants through the process. Customers can also apply via the team of local representatives based around the country.
Single Invoice Finance
The company has also just launched a new product to the market Single Invoice Finance (SIF), which provides a flexible working capital facility to allow businesses to raise finance funded against individual invoices. Although the basic principles are the same, unlike traditional Invoice Discounting facilities the business does not have to finance its entire sales ledger boo
The types of Businesses suited to Single Invoice Finance include:
• Businesses for whom large one-off invoices mean cashflow pressure;
• Businesses with a seasonal aspect to their trading;
• Highly concentrated debtors ledger – i.e. one debtor makes up the bulk of ledger and this type of ledger is generally not suited to a traditional invoice discounting facility;
• Business that have one debtor taking additional credit terms which puts pressure on cashflow;
• Growing business looking to raise for cash to fund growth;
• Businesses with unpredictable cashflow cycles.
How Single Invoice Finance from Capitalflow works:
• The business decides which invoices it wants to finance through the facility.
• A copy of the invoice and all relevant back up documentation are electronically submitted through the Capitalflow online system.
• Invoice balance is confirmed by the debtor.
• Invoice is approved for funding.
• Up to 90% of the value of the invoice is paid to the applicant immediately.
• When the debtor pays the invoice, the balance (10%) net of fees is paid back to the business
According to Ronan Horgan, CEO of Capitalflow: “The past year has been difficult for all businesses, and unfortunately it looks like 2021, or at least the first half of this year, won’t be any easier. But as any business owner knows, that’s part of the business journey.
“We’ve been working with business owners and introducers all over Ireland over the past five years and we’ve learnt through this journey that by staying close to our customers and working together we can make a positive impact.”
Photo: Ronan Horgan, CEO of Capitalflow