Cash flow finance Ireland: release cash tied up in sales

Cash flow finance is funding based on money your company is due to receive, rather than on property. It includes invoice finance against unpaid invoices, merchant cash advances repaid from card takings, revenue-based finance repaid from online sales, stock, purchase order and trade finance for buying goods, and bridging for approved grants or R&D tax credits. The amount available usually grows with your sales.

Start with what costs nothing: invoice promptly, agree clear payment terms, chase overdue accounts and charge statutory late payment interest where it applies. Then look at timing: negotiate supplier terms and talk to Revenue early about a phased payment arrangement if a tax bill is the problem. If a gap remains, cash flow finance or a short-term working capital loan can bridge it.

Invoice finance is designed for it: a provider advances most of each unpaid business invoice, so you are not waiting 30, 60 or 90 days. Factoring adds a collection service, discounting keeps collections with you, and selective invoice finance funds single invoices. You can also claim statutory interest, currently 10.4% a year, and compensation for recovery costs from late business payers.

Some products are loans and some are not. Invoice finance usually involves selling or assigning invoices, and some merchant cash advances are a purchase of future card sales for a fixed fee, while others are priced as loans. Stock, trade and grant bridging are often loans. The structure affects the cost, the rules that apply and what happens if the money is not repaid.

If the gap comes from a specific source, such as slow-paying invoices, seasonal stock or a big order, cash flow finance linked to that source often fits best, because it grows and shrinks with your trade. If you need a fixed sum for general costs, a working capital loan with set repayments is simpler. Our working capital finance page covers that option.

Our panel of five specialist lenders can help with merchant cash advances, revenue-based finance, stock finance, trade and supplier-payment finance, and working capital loans. Tell us what your company needs and we'll tell you honestly whether our panel can help, or where to apply instead.

It depends on the product. Some merchant cash advance and revenue-based providers say they can decide within about 24 hours of a complete application, because they read live sales data. A full invoice finance facility takes longer, as the provider reviews your sales ledger and customers first. No timing is guaranteed, and missing documents are the most common cause of delay.

Usually not. Providers rely on your invoices, card takings, online sales or the goods being bought. Many still ask for a personal guarantee from a director or take a charge over company assets, which is registered with the CRO. Read exactly what security is being taken before you sign, as it can affect other borrowing your company has or plans.

Generally not. AIB and Bank of Ireland both state that their invoice finance does not require licensing, authorisation or registration with the Central Bank of Ireland, so Central Bank consumer protection rules and compensation schemes do not cover it. Welcome Finance itself is not regulated by the Central Bank. Check each provider's terms and status, and take advice if you are unsure.

Start-ups registered as limited companies in Ireland (LTD, DAC, PLC or ULC) can apply, although most lenders look for some trading history, so options may be fewer. Sole traders and partnerships cannot apply through us. Their bank, their Local Enterprise Office, Enterprise Ireland for high-potential start-ups, or Microfinance Ireland are other places to look.