What is invoice finance?
Invoice finance allows businesses to borrow money against the value of their outstanding sales invoices. Rather than waiting 30, 60 or 90 days for customers to pay, you can access most of the invoice value immediately — with the balance (minus fees) released when your customer pays.
Invoice factoring
The lender manages your sales ledger and collects payment from your customers directly. More visible to customers.
Invoice discounting
You retain control of your sales ledger and customer relationships. The facility is typically confidential.
Selective invoice finance
Fund individual invoices rather than your whole ledger. Useful for businesses that only occasionally need cash flow support.
Trade finance
Covers the gap between paying suppliers and receiving payment from customers. Useful for import/export businesses.
Who is invoice finance suitable for?
Invoice finance is exclusively for B2B businesses (businesses that invoice other businesses). It is not suitable for B2C businesses or businesses that take payment at the point of sale. It is particularly valuable for businesses experiencing rapid growth, seasonal cash flow gaps, or those that have customers with long payment terms.
Invoice finance can grow with your business — the facility limit increases as your invoice value grows, unlike a fixed-term loan that may quickly become insufficient.
Can I get invoice finance with adverse credit?
Yes. Invoice finance providers assess the quality of your debtors (the businesses that owe you money) as much as your own credit history. If your customers are creditworthy businesses that reliably pay their invoices, many lenders will consider you even with CCJs or defaults on your personal or business credit file.