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• 22 Mar

  Islamic Invoice Finance

  

  Islamic invoice finance is a requirement for people of faith that wish to abide by the moral principles of Islam. Recently, we were able to help a company find this type of specialist funding to meet their needs.

  Islamic Invoice Finance

  One of the issues was that our client's faith did not permit them to pay or be charged any form of interest or discount fee on the finance that they needed to support their growth. They were a rapidly expanding healthcare recruitment company that also needed a payroll facility.

  This type of funding is ideal for recruiters as it increases as they grow. In this case, our client was expecting to almost double their turnover over the forthcoming year. Payroll financing is an ideal way of meeting this type of cash flow need during rapid expansion. The more invoices a recruiter raises, the more funding is released to use as working capital.

  Payroll Management

  In common with many other recruiters, our client wanted a facility that included payroll management. This service takes away the burden of managing your own staff payroll and all the associated paperwork. Instead, the funder takes over this function on your behalf and manages your payroll administration such as the production of payslips, P60s and other documentation. This can be a significant task for a recruitment agency that handles a lot of temporary staff placements.

  No Discount Fees Or Interest

  With invoice finance, there is no interest charged. Some providers may charge discount fees, but these were not an option for our client. Therefore, we found them a facility with a payroll finance provider that could comply with their requirements for Islamic finance. They were only required to pay services charges for their payroll facility, and there was no reference to any form of discount charge on the facility.

  By Glenn Blackman