Stop lending your customers your working capital.
Release an agreed proportion of eligible B2B invoices rather than waiting for customers to reach their payment dates.
Quick estimate
See an indicative repayment
Indicative monthly repayment
£4,500 to £5,625
Illustration only, based on a range of typical total costs. Actual pricing depends on trading history, sector, term, amount and credit profile, and differs between providers.
Every invoice issued on credit terms is an interest-free loan from your business to your customer. For a growing B2B company, that lending grows exactly as fast as sales, which is why profitable businesses so often run short of cash.
Invoice finance closes that gap. The facility advances the bulk of each invoice as it is raised, and the balance is released when your customer settles. The limit grows with your sales ledger rather than being fixed at a point in time.
Both factoring, where the funder runs collections, and confidential discounting, where you keep control of your own credit control, are available depending on the size of your ledger and the strength of your internal processes.
Best suited for
- Recruitment agencies funding weekly payroll on monthly terms
- Manufacturers and wholesalers with long debtor days
- Construction services and contractors on staged terms
- Logistics and haulage businesses invoicing corporates
- Professional services scaling headcount ahead of billing
- Any B2B business where growth is constrained by debtor days
How it works
Ledger review
Share your sales ledger and recent bank data for an initial review.
Facility agreed
We set an advance rate and a limit against the quality and spread of your debtor book.
Draw as you invoice
Raise an eligible invoice, draw the agreed advance once the facility is active, and receive the balance on settlement.
Eligibility at a glance
A short list of the information commonly considered. Eligibility and available terms depend on the individual business and facility.
- UK limited company or LLP invoicing other businesses
- Six months or more of trading history
- Invoices raised on credit terms after work is completed
- A spread of customers rather than reliance on one debtor
- UK business bank account
- Any required credit search explained before it takes place
Careful with your data, clear about your terms.
Commercial lending sits outside the FCA perimeter, so the protections of a regulated agreement do not apply. We set out how we work so you can judge it for yourself.
Your data is used to assess your enquiry, never sold or passed on for third party marketing.
Every page and every submission is served over TLS.
Where used, access is read only through FCA authorised providers and can be revoked at any time.
Finance for UK registered businesses and business purposes, not consumer credit.
The initial form is an enquiry. If a credit search is needed later, its type and impact will be explained first.
Total repayable, term, fees and any security stated in writing before you sign.
Why debtor days quietly cap growth
A business invoicing £200,000 a month on 60 day terms is carrying roughly £400,000 of its own money in its customers' bank accounts at any moment. Winning a bigger contract does not relieve that pressure, it increases it, because the cost of delivery lands weeks before the payment does.
That is the specific problem invoice finance solves. It converts the sales ledger from a static asset into a live source of funding that scales in step with turnover, which is why it so often replaces a fixed overdraft as a company grows.
Recourse, non-recourse and bad debt protection
Most facilities are written with recourse: if your customer has not paid within an agreed period, usually 90 to 120 days, the advance is repaid from your account and the debt returns to you. It is cheaper because you retain the credit risk.
Non-recourse, or a facility with bad debt protection attached, transfers a defined portion of that risk to the funder or a credit insurer. It costs more, and cover is set per customer, but it removes the single-customer failure risk that keeps many finance directors awake.
Which is right depends on the concentration of your ledger. A book spread across forty customers can usually carry recourse comfortably. A book where one customer is 40% of revenue rarely should.
What the facility actually costs
Pricing usually has two components: a service fee expressed as a percentage of turnover, covering administration and, in a factoring arrangement, collections; and a discount charge on the funds actually drawn, quoted over a base rate.
Compare offers on the total of both, against the funds you realistically expect to draw, not on the headline service fee. Ask specifically about minimum fees, termination notice periods and any charge for unapproved or disputed invoices, as these are where facilities most often disappoint.
Invoice finance against the alternatives
| Invoice finance | Overdraft | Term loan | |
|---|---|---|---|
| Limit behaviour | Grows with your sales ledger | Fixed, reviewed periodically | Fixed at drawdown |
| Security | The sales ledger | Often a debenture and guarantee | Guarantee or asset charge |
| Cost basis | Service fee plus discount on drawn funds | Interest plus arrangement fees | Interest over the term |
| Repayment | Cleared as customers pay | Repayable on demand | Fixed monthly instalments |
| Best for | Growing B2B businesses on credit terms | Small, occasional swings | Defined one-off investment |
Explore by need
What do you need funding for?
Bridge a cash flow gap
Cover a quiet month or a slow paying customer.
See options →Pay a VAT or tax bill
Spread a large HMRC bill over a set term.
See options →Buy stock or equipment
Spread the cost of a known purchase.
See options →Card takings business
Repayments that follow your card sales.
See options →Grow online revenue
Funding linked to monthly revenue.
See options →Expand or hire
Fixed monthly repayments over a set term.
See options →Frequently asked
What is the difference between factoring and discounting?
With factoring the funder manages collections and your customers know about the arrangement. With discounting you keep your own credit control and the facility is usually confidential to your customers.
How much of an invoice can be released?
Typically 80% to 90% of the invoice value is advanced within 24 hours of the invoice being raised. The balance, less the fee, is released once your customer settles.
Do all my invoices have to be included?
Not necessarily. Whole-book facilities price better, but selective and single invoice arrangements are available where you only need to accelerate specific debtors.
What if a customer does not pay?
Under a recourse facility the debt returns to you after an agreed period. Non-recourse arrangements transfer that risk to the funder or an insurer and cost more to reflect it.
Does invoice finance suit any sector?
It suits any business invoicing other businesses on credit terms: recruitment, manufacturing, wholesale, construction services, logistics and professional services. It does not suit consumer-facing businesses paid at the point of sale.
Related guides
Authoritative UK references
Independent sources cited on this page.
- UK Finance: invoice finance and asset based lending UK Finance
- Prompt payment and late payment rules GOV.UK
- British Business Bank finance hub British Business Bank
Ready to see what you qualify for?
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