05 June 2019 | Prithvi Pandya
Facilities management company NIC Services Group has agreed a new invoice finance deal with Siemens Financial Services (SFS) to double its funding limit.
NIC Services had a pre-existing relationship with SFS as the company uses asset finance to acquire cleaning machinery.
By using invoice finance, when NIC invoices its customers, up to 90 per cent of the approved invoice total is immediately advanced by the finance provider. The remaining 10 per cent is paid once the customer settles the balance. This provides the company with essential working capital so it can benefit from improved cash flow without having to wait for bills to be settled.
Simon Tidswell, group financial director at NIC Services Group, said: "In our industry, invoice finance is essential. Typically, 70 per cent of our costs are staff and customers are taking longer to pay, so borrowing against the invoice value facilitates cash flow."
NIC says that the new invoice finance system updates in real time and provides much faster access to funds unlike its previous provider's system, which could take up to 24 hours to update.