Understand your options first.
Plain-English guides to invoice finance, written for business owners and finance directors.
Factoring vs invoice discounting: which fits your business?
Both fund you against unpaid invoices. The split comes down to who chases payment, who your customers see, and how mature your finance function already is.
Invoice finance vs a bank loan, honestly costed
Bank term loans look cheap on a headline rate. Once you factor in speed, flexibility, dilution of headroom and early-repayment penalties, the true three-year cost looks very different.
How invoice finance works, step by step
A plain English walkthrough of an invoice finance facility, from the first application right through to a steady weekly cycle that releases cash as you invoice.
How much does invoice finance really cost?
Invoice finance pricing has two main charges plus a handful of extras that never make the headline. Here is how the all-in cost really adds up, with a worked example.
Is invoice finance right for your business?
A plain English self-check for UK business owners and finance directors. Learn the clear signs invoice finance fits, when it does not, and what you need in place before you apply.
Confidential vs disclosed invoice finance: what your customers see
Some invoice finance facilities are visible to your customers and some are completely invisible. Here is what changes on the invoice, who collects payment, and how to pick the right one.
Recourse vs non-recourse factoring, and bad debt protection
Recourse factoring is cheaper but you carry the risk if a customer fails. Non-recourse hands approved bad debts to the lender. Here is how to tell which one earns its keep.
Advance rates explained: why you do not get 100% up front
The advance rate is the slice of each invoice you receive up front, usually 80% to 90%. Here is what sets it, why the rest is held back, and how to nudge it higher.
Single invoice finance vs a whole-ledger facility
Funding one chosen invoice costs more per pound but ties you to nothing. A whole-ledger facility is cheaper per pound but assigns everything and runs on a contract. Here is how to pick.
Invoice finance vs a Merchant Cash Advance
One advances money your customers already owe you and grows with your sales ledger. The other is a lump sum repaid from future card takings. The right pick depends on how your business actually gets paid.
Invoice finance vs asset based lending (ABL)
Invoice finance funds one asset, your sales ledger. Asset based lending wraps that ledger together with stock, plant and sometimes property into one larger facility. Here is how to tell which one fits your business.
Invoice finance vs a business overdraft
An overdraft is a fixed limit the bank sets and can pull back. Invoice finance grows with your sales ledger, so the funding rises exactly when you win more work.
Can you get invoice finance with bad credit or a CCJ?
Poor credit or a CCJ rarely rules out invoice finance. Because the facility is secured on your sales ledger, lenders look closely at your customers, not just you.
Invoice finance for startups and young companies
A bank wants two or three years of filed accounts before it lends. Invoice finance looks at the strength of your customers instead, so a young company can raise working capital in its first year of trading.
What lenders actually check in your sales ledger
Before an invoice finance facility goes live, an underwriter reads your sales ledger line by line. Here is exactly what they look at, and how to present a clean book that earns a higher advance rate.
How to choose an invoice finance provider
The cheapest headline rate is rarely the best deal. Here is a practical framework for comparing invoice finance offers on what actually matters to your business.
Switching invoice finance providers without the drama
Moving your invoice finance facility to a better lender sounds daunting, but the handover is a well trodden process. Here is exactly how a switch works and how to avoid a cash gap.
Trade finance and invoice finance: how they work together
Trade finance pays your supplier so you can buy the goods, then invoice finance advances against the sale and repays the trade line. Here is how the two facilities dovetail to fund the whole cash cycle.
Export invoice finance: funding overseas customers
Selling to overseas buyers ties your cash up for even longer than a domestic sale. Export invoice finance releases the money on shipment while managing the currency, credit and collection risks that come with trading abroad.
From unpaid invoices to a full funding toolkit
Invoice finance solves the late-payment gap. It is also part of the Funding Flow family, so the same team can reach for tax funding, card-takings finance or the whole market the moment your need changes.
Personal guarantees and debentures in invoice finance
Invoice finance is secured differently from an ordinary business loan, and the personal guarantee is often narrower than directors expect. Here is what a lender actually takes, and what you are really on the hook for.
Debtor concentration: how your customer mix affects your facility
If one customer is more than 30% of your sales ledger, every invoice finance underwriter in the country will spot it. Here is how lenders price for concentration and what you can do about it.
Why your facility renewal date matters more than you think
Most invoice finance facilities silently roll onto worse terms each year. Knowing your renewal date ninety days out is the single biggest lever you have on pricing.
A short guide to revolving credit facilities
Revolving credit facilities sit somewhere between an overdraft and a term loan. Here is how they actually work, what they cost and where they fit.
Invoice finance myths, and the truth
A lot of business owners rule out invoice finance because of things that simply are not true. Here are the most common myths, and the honest reality behind each one.
Invoice finance jargon, explained
A plain English glossary of the invoice finance terms that appear in every facility offer and agreement, so you can read the paperwork and understand each word.
Invoice finance for recruitment agencies: funding weekly payroll
Temp and contract agencies pay workers weekly but wait 30 to 60 days for clients to settle. Here is how invoice finance closes that gap by advancing against timesheet-backed invoices.
Invoice finance for construction and CIS subcontractors
Construction is the hardest sector in the country to fund on invoice finance. Here is why most mainstream lenders avoid it, and what a specialist construction lender does differently.
Invoice finance for haulage and logistics operators
Fuel, tolls, wages and maintenance are paid now, but freight customers pay in 45 to 60 days. Here is how invoice finance bridges that gap for UK transport operators.
Invoice finance for manufacturers
Manufacturers tie up working capital for months before a customer pays. Here is how invoice finance releases cash the moment goods are dispatched, and where stock and trade finance fill the earlier gaps.
Invoice finance for wholesalers and distributors
Wholesalers run thin margins on high volume, with cash tied up in bulk stock while retailers pay on 30 to 60 day terms. Here is how invoice finance releases that trapped cash so you can restock and take the discounts that make the margin work.
Invoice finance for healthcare and care providers
Care homes, domiciliary agencies and medical staffing firms pay staff weekly but wait 30 to 60 days for councils, NHS trusts and integrated care boards to settle. Here is how invoice finance bridges that gap.
Invoice finance for IT services and managed service providers
MSPs pay salaries, subcontractors and vendors every month but wait 30 to 60 days for clients to settle. Here is how invoice finance smooths a mix of recurring support, thin-margin resale and lumpy project billing.
Invoice finance for consultancies and professional services
Consultancies and professional services firms bill on completion, milestones or retainer while payroll goes out every month. Here is how invoice finance turns unpaid fee invoices into working capital.
Invoice finance for cleaning and facilities contractors
Cleaning and facilities firms pay operatives weekly while clients settle monthly invoices on 30 to 60 day terms. Invoice finance funds that payroll gap so growth does not drain the bank.
Invoice finance for engineering and fabrication firms
Made-to-order engineering ties up cash in materials, labour and machine time for weeks before an invoice goes out. Here is how invoice finance releases that cash once the job is delivered.