Why Invoice Finance
Why use invoice finance?
Up to 90% of invoice value
Release the majority of each invoice's value within 24 hours of raising it.
Funds in 24 hours
Once your facility is live, funds against each invoice are typically released within 24 hours of submission.
Confidential options available
Invoice discounting keeps your financing private, customers never need to know.
Grows with your business
As your turnover increases, so does your available funding. No need to renegotiate.
No fixed monthly payments
Costs are deducted when your customer pays, no rigid monthly repayment schedule.
Keeps your cash flow consistent
Bridge the gap between invoicing and payment to maintain steady working capital.
Factoring vs Discounting
Invoice Factoring
The lender manages your sales ledger and collects payment from your customers. This is a disclosed facility, your customers will know you're using finance. Ideal for businesses that want to outsource credit control and focus on growth rather than pursuing payments.
- Lender collects payment from your customers
- Credit control included
- Disclosed to customers
- Good for businesses without a credit control team
Invoice Discounting
You retain full control of your sales ledger and customer relationships. This is a confidential facility, your customers won't know you're using finance. Best suited for established businesses with an existing credit control process.
- You manage your own sales ledger
- Fully confidential
- Customers don't know you're using finance
- Best for businesses with strong credit control
Best for these industries
Invoice finance works particularly well in industries where long payment terms are standard.
Useful resources
Related at Funding Flow: business loans, working capital loans, invoice finance calculator.
Official references: gov.uk VAT payment deadlines, Bank of England base rate.
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Invoice finance calculator
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60 days
Your figures
85%
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Illustrative planning tool only, not a quote. Invoice finance fees vary by lender, sector and risk.
Calculations are illustrative only. Actual rates, terms and fees are deal-dependent and vary by lender, business profile, and security. Speak to your broker for a tailored quote.
Frequently asked questions
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