Invoice Finance

Release value from unpaid invoices

If you’re spending too much time chasing late-paying clients or have cash flow shortages caused by long payment terms, invoice finance could be the answer. It allows you to get your hands on cash that would otherwise be tied up in outstanding invoices almost immediately. 

A few invoice finance products are commonly used in the UK - invoice factoring, invoice discounting and single/spot factoring. At UK Business Finance, we help you find the right product and personalise it to suit your needs. We then bring you the best quotes from the whole market and our service is completely free.

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With full market access and absolutely no ties to any lender, we can objectively match you with the most effective and cost-efficient source of business finance. Contact our team today!

What is invoice finance?

Invoice finance is a form of funding that uses your outstanding invoices as security. Rather than waiting 30, 60 or 90 days for a client to pay an invoice, an invoice finance provider will advance you 80-90% of the invoice’s value, typically within 48 hours. When your client finally pays the invoice, you will be paid the remaining 10-20% of the invoice’s value, minus the finance provider’s fee.   

If you regularly invoice business clients and want to free up funds to boost your cash flow, invoice finance could be the answer. It’s also a potential funding option for businesses without physical assets to use as security on a loan. 

Our Invoice Finance Products

Factoring

Release cash early from outstanding invoices to access immediate working capital to fulfil demand
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Invoice Discounting

Advance payments tied up in invoices and retain full responsibility for payment collection
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Single / Spot Invoicing

Release cash tied up in outstanding invoices of your choice to boost cash flow
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What are the benefits of invoice finance?

Invoice finance works differently from traditional funding methods such as business loans, and that brings a useful range of benefits:

• It’s quick and easy - Invoice finance is a quick way to boost your cash flow. Once you have an agreement in place with a provider, you can release the funds from an invoice in just 24 hours.
• There are no monthly repayments or long-term debt - You pay the invoice finance provider a small percentage of every invoice, so there are no monthly repayments or long-term debt to worry about.
• Your assets are not at risk - There’s no requirement to provide a physical asset as security or sign a personal guarantee. The only collateral required is the invoice itself. 
• It’s scalable - The amount of money you can access via invoice finance increases in line with your turnover, so you have a sourcing of funding that grows with your business.
• You receive help with credit control - If you choose a factoring or spot factoring deal, the finance provider will act as your credit controller and collect payments from your clients on your behalf. That can give you more time to focus on your business.

As with any business finance product, there are also a few things to consider. You’ll lose a percentage of every invoice you raise finance against, so that will reduce your profit margins. You’re also reliant on the creditworthiness of your customers. In some agreements, you can become liable for the shortfall if your customer doesn’t pay your invoice.

Is my business eligible for invoice finance?

If you run a small business with few physical assets, want to avoid debt financing or have an adverse credit history, invoice finance could be a great option. To be eligible, typically you should:

• Have a minimum annual turnover of £30,000
• Trade with other businesses (B2B) rather than with individual consumers (B2C)
• Have a trading history and a track record of issuing invoices and collecting payments from your clients 
• Have payment terms of 30-90 days

Importantly, Invoice finance providers are more concerned with the creditworthiness of your customers than your business. So, if your business has an adverse credit history, you can still apply.

Find the right invoice finance deal for your business

We can help you arrange invoice finance contracts from 30 days to three years. Just tell us your requirements and we’ll search the whole market to find the best deal. We’ll even complete the applications on your behalf. Request a quote or get in touch to benefit from our fee-free service.

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Our team of finance experts can provide industry-leading advice on mortgages to suit a range of different scenarios. Call the team on 0808 301 0624 or Contact Us