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Innovative lending solution for contractors launched

An innovative finance company has launched a new service which allows contractors and freelancers to free up the value of their outstanding invoices – offering an alternative to traditional bank lending.

UC Finance has secured initial funding of £5m, and has also been approved for a £250,000 Regional Selective Assistance Grant from Scottish Enterprise.

The product itself allows one-man-band limited companies to borrow up to 80% of the value of their outstanding invoices in return for a flat percentage charge of the sum advanced.

We asked the firm’s MD Joanna Holloway, an ex-RBS executive, how limited company contractors would benefit from using this service:

“Timesheet Finance gives company owners peace of mind by alleviating cash-flow worries. We bridge the gap between an invoice being raised and having cash in the bank – allowing contractors to take on new contracts with the comfort of knowing they have real time access to cash, as soon as the timesheet is approved. Timesheet Finance can give the priceless gift of time by undertaking invoicing and credit control, for each of our clients. The company owners can focus on other crucial parts of their business.”

With invoice finance a long-established cashflow method used by all types of businesses across the UK, we wanted to find out how this new service differs from traditional invoice finance offerings:

“Timesheet Finance sets itself apart from other invoice finance services because it is designed solely for contractors & freelancers: a population denied access to finance by traditional invoice finance companies because they don’t meet certain strict lending criteria. Drawing on our combined extensive experience in banking and contracting we have developed a bespoke financial package that meets contractors’ and freelancers’ unique needs. Secondly, the key is in the name Timesheet Finance, we fund the contractor’s approved timesheet. This means they can get access to cash much sooner than with traditional invoice finance. Additionally, and unlike traditional invoice finance providers, we raise our client’s invoice on their behalf and send directly to the end user for processing.

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