Invoice Financing, Factoring & Discounting

Get paid for your invoices as soon as you send them

Looking for invoice financing? Fill out our quick form to get started...

Why choose Invoice Finance

 Broadly speaking, there are two key types of invoice financing a small business might choose:

Invoice discounting

This invoice financing product means that all of your invoices will be financed automatically and up front.

Invoice factoring

This invoice financing option allows you to select which invoices to finance. 

Other invoice finance product

There are also many variants in between invoice factoring and invoice discounting, including options which allow you crowdfund selective invoices (called invoice trading). Not sure which is the best option for you? We're here to help. Call us to have invoice financing explained and recommendations made by SME finance experts.

Invoice financing vs factoring

  • Invoice Discounting: cheaper but all your debtors must be financed. Usually only for larger firms.
  • Invoice Factoring: Select invoices to finance as suits you. Convenient and for that a little more expensive.
  • Invoice Trading: Crowdfunders will now finance individual invoices at competitive rates
  • A mix of all of the above: there are many variants available. Call to discuss.

Frequently Asked Questions

What percentage of my invoice can I fund up front?    

It depends on your business but up to 90% is possible.

What security is required?    

This depends on which type of Invoice Finance you choose. If you go for Factoring or Invoice Trading then likely no security is required. Invoice Discounting usually requires a floating debenture over your business.

I'm already with someone for my Invoice Finance; is it easy to switch providers?    

Yes, it happens all the time.

Is it possible to get Invoice Finance for start-ups?    

In some cases yes, it depends on your business and your projected turnover.

Do finance providers require Personal Guarantees?    

No, not always. The finance is secured against your debtor ledger and assuming this is adequate, a PG may not be required.

Will it make my business look bad if I have Invoice Finance?    

No, over 40,000 UK SMEs use invoice finance and it merely shows that you are prudently managing your cash flow. That should give all your customers and suppliers more confidence in your business.

Is it possible to get Bad Debt protection or Credit Insurance?    

Yes, one of our Invoice Finance specialists can arrange this for you, as either part of your facility or separately.

If my business is in the construction industry, can I still get Invoice Finance?    

Yes, there are some specialist lenders in this area.

My debtors are all overseas; can I still get Invoice Finance?    

Yes. We have providers that will arrange Invoice Finance for overseas debtors.

How much does Invoice Finance cost?    

This depends on which option you choose (Factoring, Invoice Discounting or Invoice Trading) but there is usually a facility fee of 0.5-2.5% and also a charge for the finance on each invoice (again anything from 1-3% over BBR).

What do I need to apply?

Applying for Invoice Financing, Factoring & Discounting is very easy. Below you'll find all of the things you need in order to apply.

  • Eligibility Criteria Good debtor book and ideally an established business with good credit.
  • Documents Required Financial statements, debtor ledger.
  • Additional Comments Invoice financing for small business clients can vary widely. We offer recommendations, guidance and tailored support for your unique business. 

Invoice financing explained

Invoice financing is a hugely competitive market. High street banks will usually provide the best rates but, unlike a specialist invoice financing company, they usually only finance your entire book. 

High street lenders don't deal with concentration risks very well (i.e. if a disproportionate amount of your business is with one debtor) and they may not be as flexible as you might require. 

For options beyond the High Street there are dozens of other options from challenger banks and private lenders, to crowdfunders. Each option offers varying degrees of flexibility. It's a specialist area and mistakes can be expensive if you get locked into long term contracts. For an expert overview of the market and specialist recommendations for your business, contact us today.

Contact Us Today

Discuss your invoice financing options with a member of our team

Enquire Online

Fill out our simple form to have a member of the team contact you

01494 410 125

Call today to discuss your finance options with a member of the team