Invoice Finance

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What is Invoice Finance?

Invoice Finance is a commercial finance product which is used to release funds to a business, with outstanding invoices used as security. It is an area of business borrowing that has been under-utilised in recent years.

This highly flexible form of borrowing can be used to free up funds from your debtor book, relieving the pressure placed on your cash flow. Many businesses are turning to this option to take back control of their finances, allowing them the breathing space needed to move forward.

As experienced brokers, we are able to offer a wide range of solutions, from full invoice factoring to selective invoice discounting. We can help you free up capital and ease cash flow at market leading rates. This involves unlocking funds tied up in your unpaid sales invoices. Contact us for a free no obligation quote.

Latest Invoice Finance Offers

Check out the latest offers, find the perfect product for you and apply online instantly.

Product IF0001 - Apply Now
Disc Charge (From)
Service Charge (From)
Max Advance Rate
Min Turnover
Products Offered
Factoring & Discounting
Min Trading Time
From Start Up
Product IF0002 - Apply Now
Disc Charge (From)
Service Charge (From)
Max Advance Rate
Min Turnover
Products Offered
Factoring & Discounting
Min Trading Time
From Start Up
Product IF0003 - Apply Now
Disc Charge (From)
Service Charge (From)
Max Advance Rate
Min Turnover
Products Offered
Factoring & Discounting
Min Trading Time
From Start Up

Everything You Need To Know About Invoice Finance

Read through the sections below to learn everything you need to know.

Working with ABC Finance Ltd.

Invoice finance is difficult to decipher alone. Finding the best deal is hard, with lenders often failing to publish their rates and fees prior to application and terms varying wildly between lenders. We’ve gained a lot of experience in helping businesses to finance their growth since we started out in 2000.

Our advisors are experts in their field and their job is to secure the best possible terms for every enquiry they receive. The best part is, we never charge a fee for arranging invoice finance, meaning you can have an expert working on your behalf at absolutely no cost.

With lots of new SME lenders opening in the last few years, business owners can be confused by which product is right for easing their cash flow. Invoice finance could be the ideal solution for you. Many of our clients use their improved cash flow to drive their business to the next level.


The Different Types Of Invoice Finance

This type of business borrowing can be broken down into a number of different products, they are:

Click on each product to find out more about them, including the differences, advantages and disadvantages of each.

Is Invoice Finance Right For My Business?

It can be a great tool for releasing additional capital for your business. Each business is managed differently and there are a number of factors to consider before deciding to take out invoice finance.

Who Should Take Out Invoice Finance?

There are several industries that tend to benefit greatly and the most common are:

  • Printing
  • Security firms
  • Manufacturing
  • Engineering
  • Recruitment
  • Wholesale
  • Transport
  • Logistics
  • Construction
  • Freight

Of course, any company supplying on payment terms of 30 days or more can benefit, regardless of industry.

Choosing The Right Invoice Finance Product

If the need for additional working capital is likely to be long-term and you are paid in terms of 30 days or more, you should consider invoice discounting or invoice factoring. The key difference is around credit control.

Although the idea of giving up credit control to the lender might seem appealing, it isn’t always simple. Where you have a strong relationship with your customers, you may find that they contact you anyway, rather than responding to your invoice finance provider.

Where funding is short-term, selective invoice discounting is the better product for you. Before proceeding, it is worth comparing the cost against other forms of business finance, such as business revolving credit facilities and business loans.

Cash Flow vs. Profit

Although this method of borrowing will help your cash flow position, there is a cost for the service. This means there is a trade-off to consider – working capital versus profit. Careful consideration should be given to both the benefits and drawbacks.

If your business is highly profitable, but cash flow is a struggle due to long invoicing terms, then there is a good chance that invoice finance is for you. Boosting the cash flow of a business can produce significant benefits, as long as you’re not eating up all the profit to achieve it.

Invoice Finance Providers

There are a number of different lenders who are active in the market. Each lender has their own process and criteria with their own areas of expertise.

We work hard on your behalf to find the best providers for your circumstances – and we don’t charge a broker fee for our service. We try to cover all the leading lenders in our invoice finance comparison, to give you the broadest range of options possible.

Although people have historically used their own bank to provide funding, a number of new lenders have entered the market. This has improved the choice for borrowers. Here we break down the different types of lenders, and how they tend to work.

High Street Banks

High street banks have historically been the go-to resource. As with other forms of finance, the offering from high street banks is usually aimed at the prime end of the market.

The rates offered will usually be low, as will the costs of borrowing. The price to pay for this is that the bank will usually want to see a long and successful trading history, with plenty of security and a strong balance sheet.

The products offered by high street banks will often be the cheapest. However, the application process is often more difficult than other lenders. If you or your business have a poor credit history, a lack of trading history or few assets, you may find high street funding difficult to secure.

Specialist Lenders

There are a number of specialist lenders in the market, including challenger banks and lenders who offer only invoice finance and other forms of asset-based lending. Generally, these lenders will work in a similar way to high street banks but will be more flexible in their criteria. This gives you a much better chance of success in your application and also makes the process much quicker.

Peer-To-Peer (P2P) Platforms

Peer-to-peer lending is becoming increasingly common and is proving popular in the selective invoice discounting space too. There are a number of P2P funded lenders operating in this area, and they can offer excellent terms in the right situation, while also acting quickly.

Bad Debt Protection & Other Add-Ons

Our providers are able to offer full bad debt protection. This is designed to protect you from losses in the event of your customer becoming insolvent and failing to make payment.

There are several add-ons available to help protect your business, each of which has a cost. Our experts talk you through all of your options and the costs associated with each. We can help make the process simple and easy to understand.