A new invoice finance solution by the name of Invoice Cycle is bringing subscription-based financing options to UK SMEs.
London-based invoice financing company Invoice Cycle has recently launched a new platform, offering small and medium enterprises working capital financing solutions. Invoice Cycle claims to be distinct from existing UK platforms, in that it mainly targets businesses with a subscription-based sales model, such as Software as a Service (SaaS) companies.
A company that adopts a subscription-based business model sells products and services to its customers at a specific subscription price. Businesses benefit from this structure in that they are assured of a predictable and constant revenue stream from subscribed individuals for the duration of the subscriber's agreement. According to the company, 80% of UK SMEs detect a change in the way that customers want to access goods and services and 50% of them changed have changed their pricing models to subscription-based structure accordingly.
Invoice Cycle offers financing against a firm’s subscriptions, allowing the client to gain quick access to funding. Then it collects the subscription income once it’s paid. The company guarantees advances of up to 6 months of users’ recurring monthly revenue, with a direct integration with their online payment gateway. Rates start from 2% a month.
Gideon Shaw, CEO of Invoice Cycle, offered comment:
“Backing the growth of SMEs is vital to the British economy because, according to Government figures, 99.9% of all British businesses are SMEs and they account for 60% of private sector employment. However, one of the main challenges for growing businesses is accessing finance. In our modern, innovative economy, firms need sources of finance that operate in new ways and finance providers that respond rapidly to their needs. That’s exactly our mission at Invoice Cycle. ”
The other financing solution offered by the platform consists of a straightforward term loan, of any sum between £5,000 and £50,000. The loans are distributed online through a simple process – which takes no longer than five minutes to complete – and loans are given against invoices that clients have issued to their customers. Invoice Cycle is keen to highlight the speed of its decision-making process. Credit decisions are taken in less than 24 hours, at prices starting from 2% per month.
“It’s common for SMEs to wait anything from 30 to 90 days for payment, or for banks to take the best part of a month to confirm a loan. But firms whose resources are small often need money more quickly than that. Invoice Cycle can provide much needed capital much faster.”