Invoice Finance FAQs2018-09-17T11:18:45+00:00

Invoice Finance FAQs

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ABC Finance Ltd. works with a large panel of asset finance lenders from across the industry to ensure that you’re able to find the best product at market-leading rates. Our expert team are available to give you all the details you need to make the best decision for your company.

Read on to find out the answers to frequently asked questions about asset finance. For more insights visit our product types and guides pages.

Frequently Asked Questions

How Quickly Can Invoice Finance Be Arranged?

Invoice finance facilities can be arranged in as little as a few days. Most applications are usually completed in a time frame between 10 days and two weeks, with transfers from other providers usually taking slightly longer.

If you need your facility to complete very quickly, just let us know and we’ll ensure that your application completes within your required timescales.

How Much Money Can I Release Against My Ledger?

It’s possible to release up to 95% of your outstanding invoices, although this is rare. It is more common to expect an advance rate of 80-90%. This means that with an outstanding sales ledger of £1,000,000, you could expect to release around £850,000 – £900,000.

Do You Have A Minimum Turnover?

We are happy to provide invoice finance for companies that are turning over £30,000 or more per annum. There is no maximum turnover, however, and we can fund very large businesses without issue.

How Many Years Do I Have To Be Trading Before I Can Take Out Invoice Finance?

We can fund relatively new, and even start up businesses on both an invoice factoring or selective invoice discounting basis. Although we could fund on an invoice discounting basis in theory, this is usually more suitable for larger businesses.

Do You Fund Phoenix Companies?

Yes. We can fund phoenix companies without issue, although the number of lenders willing to offer terms will be limited. This can restrict the number of options available.

Will You Fund All Of My Invoices?

In most cases, the invoice finance lender will be happy to fund all your invoices. Occasionally, one of your customers may not be eligible for funding, although this is usually uncovered at an early stage of the application process.

If this is the case and causes an issue, we will happily find an alternative funder for you to ensure the facility provided fully meets your needs.

Can I Transfer Between Invoice Finance Providers?

Yes, transferring between invoice providers can be a relatively straightforward process if managed correctly. We can manage this for you alongside the lender using an interfactor transfer. This will see a smooth transition for both yourself and your customers.

What Happens If A Customer Doesn’t Pay?

Where a customer fails to pay, there will clearly be a funding gap meaning, as a minimum, you won’t receive the balance owed to you on the invoice. In addition, depending on your facility, you may see the debt become disapproved, meaning your borrowing capacity is reduced.

Am I Tied Into A Lengthy Contract?

Most lenders will look to tie you into a contract when setting up a new invoice finance facility. We do, however, work with a number of lenders who are happy to arrange facilities on a rolling monthly contract, meaning you’re free to leave whenever you want.

Selective invoice finance lenders will not usually tie you into any contract, meaning you can use the facility as much or as little as you like.

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