Fintech company Funding Invoice has recently launched a trade finance product to help growing fashion brands in the UK.
Many small businesses, including fashion start-ups, struggle to keep up with paying their overheads and factories and need to wait until payments come in from the customer or client. This can put a small business in a very difficult financial situation, particularly considering some factories will not release this product until they have been paid for it.
The new trade finance product by Funding Invoice helps to support fashion brands and other types of small businesses through this difficult situation. The product provides the finance necessary to push along the production process (e.g. providing a loan to pay the factories to release the business’s products). This finance is in the form of a loan, that will have to be paid back once the business has received full payment for their product, whether it is 60, 90 or 120 days later.
This new product signifies the expansion of Funding Invoice’s financial support services; having been built, as the name suggests, to initially help support small businesses through slow or delayed invoice payments. The concept for this business was developed by founder young entrepreneur, Aamar Aslam, who experienced first-hand the issues that slow invoice payments can have on a business.
Whilst studying for his undergraduate degree, Aslam started a chauffeur service, and like many small business owners, struggled to manage his business’s finances when hit with delays on his invoice payments from clients. Inspired by his struggles, Aslam set up Funding Invoice after graduating, which began to help other business owners stay financially afloat whilst waiting for their invoice payments to come through.
Alongside this new trade finance product will remain the initial invoice funding loan, with businesses able to apply for any amount of money, provided they submit a valid invoice stating that the business is waiting to be paid. In return for this financial support, Funding Invoice takes a small fee in the form of a percentage of this invoice.
The fintech company have already organised over £50 million in funding and the new release of this trade finance product is set to significantly boost this number, and further expand upon the funding company’s financial support services to small businesses. The new product will allow fashion brands and other small businesses that are struggling with their cash flow to deliver to their customers on time and stay on top of finances.