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Invoice finance made simple
Turn unpaid invoices into working capital so you can grow with confidence.
What is invoice finance?
Waiting for customers to pay can slow down your plans. Invoice finance gives you access to a large share of the invoice value soon after you raise it, so you can cover payroll, buy stock, and take on bigger jobs without the wait.
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You submit an eligible customer invoice and receive an advance, then when your customer pays the balance is released less fees. Facilities can be discreet with you managing credit control, or fully serviced with a provider handling collections.
We explain the options and help you choose a setup that fits how you trade.
Types of invoice finance
Every business collects from customers in a different way. Below is a quick guide to common structures and when they can help.
Invoice factoring
Ongoing facility where the provider advances funds and manages collections. Great for lean teams that want more time to focus on delivery.
Confidential invoice discounting
You keep control of credit management while drawing funds against approved invoices. Suits larger or more established finance teams.
Spot factoring
Fund a single invoice or a small batch when you need it. Good for one off projects or seasonal peaks.
Construction and applications for payment
Tailored options for staged works where certifications and pay less notices apply.
Common uses of invoice finance
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Covering payroll and supplier bills while waiting for customers to pay
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Buying materials and stock for larger orders
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Taking on bigger contracts with confidence
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Smoothing seasonal ups and downs
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Reducing reliance on overdrafts and short term borrowing
Alternatives to invoice finance
Invoice finance works best when cash is tied up in invoices to other businesses. If you prefer another route, these options can also fit well.
Revolving credit facility or overdraft
Draw, repay, and draw again. You pay interest only on funds in use. Great for short term working capital and unpredictable timing.
Asset finance
Fund equipment or vehicles with the asset itself as security. Helps preserve cash flow and spreads cost over the useful life of the asset.
Merchant cash advance
Repay as a small share of card takings if your sales are card led.
Business loan
A set amount with a clear term and regular monthly repayments. Useful when you want predictable costs.
Key invoice finance info
Advance rate
Many providers will advance around seventy to ninety percent of eligible invoices, with the remainder released when the customer pays.
Fees and charges
Pricing is usually a service fee plus a discount rate applied to funds in use. We show total cost in pounds and explain each fee before you proceed.
Terms
Facilities are often rolling with an annual review. Minimum terms can apply depending on the provider and structure.
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Speed
Indicative terms can arrive quickly. After onboarding and legal documents, first drawdown can follow soon after. Timelines are quicker where records are complete and customers are well known.
Choice of providers
Access to a wide panel of UK specialists, including options for construction, recruitment, manufacturing, logistics, and professional service
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Process
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Quick fact find
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Share debtor reports and sample invoices
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Receive tailored options and pricing
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Provider due diligence and e signing
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Go live and first drawdown
Ongoing invoice finance vs spot factoring
Ongoing invoice finance gives you a rolling facility that advances a large share of many invoices, which suits regular business to business billing.
Spot factoring funds selected invoices only when you need it, with no long commitment, and is great for occasional or project based cash needs.
Invoice finance usually involves onboarding and a service plus discount fee that can work out cheaper per pound for steady use, while spot factoring is priced per invoice and trades a little extra cost for maximum flexibility.
Invoice finance FAQs
How does invoice finance work?
You submit an eligible invoice and receive an advance. When your customer pays, the balance is released less fees. You can keep control of collections or use a serviced option.
How much can I access?
Advance rates often sit around seventy to ninety percent of the invoice value, with the rest paid when funds are received from your customer.
What does it cost?
There is usually a service fee for the facility and a discount rate on funds in use. We present the total cost in pounds so you can compare options clearly.
Will my customers know?
With factoring the provider manages collections so customers are aware. With confidential discounting you collect as normal and the facility is usually not visible to customers.
Are start-ups eligible?
You will need customers that pay by invoice and a clear process for proof of delivery or sign off. Newer businesses can be considered where the debtor quality is strong.
Can I fund only some invoices?
Yes. Selective options allow you to fund chosen invoices or debtors rather than the whole ledger.
What about construction invoices?
There are specialists that understand certifications, applications for payment, and pay less notices. We can match you with providers that work in your sub sector.
Can I switch from an existing provider?
Yes. We can arrange a refinance and support the transfer process including notice, release of charges, and onboarding.
What documents will I need?
Photo ID, recent bank statements, aged debtor and creditor reports, recent accounts or management information, and sample invoices with evidence of delivery or acceptance.
Can I exit early?
Early exit is possible but may involve notice periods or fees depending on your agreement. We will make these clear before you sign.
Who is eligible for invoice finance
Trading profile
Best suited to business to business companies that issue invoices with agreed terms.
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Turnover and affordability
Facility size relates to your revenue and the strength of your debtor book. We help you evidence this clearly.
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Debtor quality
Creditworthy customers, low dispute risk, and sensible concentrations improve terms.
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Credit checks
Personal and business credit are considered alongside trading performance.
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Security and guarantees
A debenture or personal guarantee may be requested. Property security is not always required.
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Documents
Photo ID, recent bank statements, aged debtor and creditor reports, recent accounts or management information, and sample invoices with proof of delivery or sign off.