Invoice Finance

Invoice finance allows you to access cash tied up in unpaid customer invoices. A lender advances a percentage of the invoice value, giving you working capital without waiting for your customers to pay.

It can be used to manage cash flow, pay suppliers, invest in growth or cover seasonal fluctuations. Once the invoice is paid, the remaining balance is released, less any agreed fees.

Invoice finance provides faster access to working capital, helping you cover day-to-day costs without waiting for customers to pay.

Funding can also support growth, larger contracts, supplier discounts, recruitment and stock purchases. As funding is linked to your sales, it can increase as your business grows.

A business loan provides a fixed amount that is repaid through regular payments over an agreed term.

Invoice finance provides funding against unpaid invoices, so the amount available can increase as you raise more invoices. It’s typically suited to ongoing cash flow needs, while business loans may be better for one-off investments or purchases.

Lenders typically advance 80% to 99% of the value of approved invoices. The remaining balance is released once your customer pays, less any agreed fees.

The amount available depends on your business, sales ledger, customers and the lender’s criteria.

Yes. Many providers offer selective or spot invoice finance, allowing you to choose which invoices to finance rather than your entire sales ledger.

Availability depends on the lender and your circumstances.

Not necessarily. Some facilities are confidential, meaning customers won’t know you’re using invoice finance. Others involve the lender managing collections, so customers will be aware of the arrangement.

We’ll explain the options so you can choose the facility that best suits your business and customer relationships.

Both release cash from unpaid invoices, but the key difference is who manages your sales ledger and collects payment.

Factoring:
The finance provider typically manages your sales ledger and credit control.

Invoice discounting:
You retain control of your sales ledger and collect payments yourself. It can also offer a confidential funding solution.

We’ll help you compare both options and identify the most suitable solution for your business.

Depending on the lender, facility and information provided, invoice finance can sometimes be approved and set up within hours, allowing you to access funds the same day.

The finance provider reconciles the payment and releases the remaining balance to you, less any agreed fees and charges. The customer’s payment first settles any advance already provided.

The exact process depends on your facility, and we’ll explain this before you proceed.

Invoice finance is generally available to B2B businesses that offer credit terms to their customers.

Eligibility depends on factors such as turnover, customer base, sales ledger and trading history. We’ll assess your circumstances and help identify the most suitable solution.