Turn unpaid invoices into immediate cash

Invoice finance is a way to unlock the cash tied up in unpaid invoices before your customers pay. Instead of waiting 30, 60, or 90 days for payment, a lender advances you a percentage of the invoice value, typically 70–90%, immediately. When your customer pays, you receive the balance minus the lender's fees.

With invoice factoring, the finance provider manages your sales ledger and chases payments directly from your customers, who will be aware of the arrangement. With invoice discounting, you retain control of your sales ledger and credit control; the facility is confidential and your customers are unaware. Invoice discounting is more common for larger, well-established businesses with strong internal credit control.

Most invoice finance providers advance 70–90% of the invoice value immediately upon raising the invoice. The remaining percentage, minus fees, is paid when your customer settles. The advance rate depends on your sector, customer quality, and the provider's assessment of your debtor book.

Invoice finance works best for B2B businesses that invoice other businesses or public-sector organisations on credit terms of 14–90 days. It is particularly well-suited to businesses in recruitment, construction, manufacturing, logistics, and professional services, where slow payer cycles create cashflow pressure.

Once a facility is set up, typically taking one to two weeks, funds can be released against new invoices within 24 hours of raising them. Some providers offer same-day funding. The initial setup involves a credit assessment of your business and your customers.

Invoice finance is available across most B2B sectors: recruitment and staffing, construction (with some specialist CITR products), manufacturing, distribution and logistics, IT services, professional services, healthcare, and media. It is not typically available for B2C businesses, where customers pay immediately.

Invoice discounting is completely confidential: your customers never know a third party is involved. With factoring, the lender sends statements on your behalf, but reputable providers handle this professionally. Many businesses find that a well-managed factoring arrangement actually improves payment times without damaging relationships.