Successfully Funding Thousands Of UK Limited Companies Since 1989
Require Immediate Support? Helpline 0800 056 0410
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.
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.
Release cash early from outstanding invoices to access immediate working capital to fulfil demand
Advance payments tied up in invoices and retain full responsibility for payment collection
Release cash tied up in outstanding invoices of your choice to boost cash flow
Invoice finance works differently from traditional funding methods such as business loans, and that brings a useful range of benefits:
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.
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:
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.
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.
We work across a wide range of sectors throughout the UK, providing specialist advice to each sector.
Can I refinance existing business borrowing?
Most companies will have at least some outstanding borrowing, whether that is in the form of business loans, an overdraft, or a type of asset-based lending.
What are my options if my bank has refused my company finance?
When looking for funding to kick start or grow your company, many business owners’ first instinct is to turn to their bank in order to secure this borrowing.
Understanding Revolving Business Credit: Overdrafts and Invoice Finance
Revolving business credit is a flexible line of funding which is available to a company to dip in and out of as and when it is needed.
What is the difference between capital and asset finance?
Capital finance is a broad term which encompasses a number of different commercial funding solutions, including fixed term loans, invoice financing, and overdrafts.