BORROW AGAINST FUNDS OWED TO YOU
HOW CAN INVOICE FINANCING BENEFIT YOU
Invoice Finance assists businesses improve cash flow by borrowing money against funds that they are owed from their customers until the balances are paid in full. Businesses pay a percentage of the invoice to the lender as a fee for borrowing the funds.
This type of facility is a great way of building business continuity into the overall business strategy as it mitigates against the negative impact that overdue invoices might otherwise have on cash flow and also allows businesses to cope with longer invoice repayment terms i.e., 60-90 days.
FINANCE PRODUCTS
TYPES OF INVOICE FINANCING
OUTSOURCED LEDGER & CREDIT CONTROL
INVOICE FACTORING
Invoice factoring is a cash flow solution where you sell your outstanding B2B invoices outright to a financial provider. The provider takes over ownership of your sales ledger, managing the credit control and handling the day-to-day collection of customer payments directly.
HOW IT WORKS
You raise a customer invoice and submit it to the factor, who advances up to 90% of its cash value within 24 hours. The factoring company then manages payment collection directly from your customer. Once settled, they release the remaining invoice balance to you, minus their service fee.
BEST SUITED FOR
GROWING SMES
RECRUITMENT AGENCIES
NEWLY TRADING STARTUPS
OUTSOURCED CREDIT CONTROL
CONFIDENTIAL CASH FLOW FUNDING
INVOICE DISCOUNTING
Invoice discounting is a finance-only facility that lets you borrow capital against the value of your unpaid invoices while keeping full control of your sales ledger. This arrangement remains entirely confidential, ensuring your direct client relationships are preserved without external interference.
HOW IT WORKS
You submit your outstanding invoices to use as collateral, and the provider immediately advances an agreed percentage of the total worth. Your business remains responsible for chasing and collecting customer payments exactly as normal. When customers pay into your designated account, the advance is cleared.
BEST SUITED FOR
ESTABLISHED COMPANIES
HIGH-TURNOVER BUSINESSES
IN-HOUSE ACCOUNTING TEAMS
CONFIDENTIAL FINANCING
ANSWERING YOUR QUESTIONS
FREQUENTLY ASKED QUESTIONS
Invoice finance releases cash tied up in unpaid B2B invoices, so you do not have to wait 30, 60 or 90 days to be paid. A lender advances a large percentage of an invoice’s value soon after you issue it, and the balance follows once your customer pays, improving cash flow without a traditional loan.
With factoring the lender manages collection and your customers are aware of the arrangement; with discounting you keep collecting yourself and the facility stays confidential. Discounting suits businesses with their own credit-control function, while factoring suits those who want the admin handled for them.
Lenders typically advance a high proportion of each invoice’s value soon after it is raised, with the remainder paid once your customer settles, minus the fee. The exact percentage depends on your sector, your customers and the lender, which we compare on your behalf.
It tends to suit businesses that invoice other businesses on credit terms and whose growth is held back by slow payment. It is less relevant if you sell mainly to consumers or take payment upfront. A short review will show whether it fits your model.