In today’s economic climate, keeping cash flow steady is vital—especially for small and medium-sized businesses. Whether you’re navigating supply chain costs, seasonal demand, or waiting on longer payment terms, cash tied up in unpaid invoices can hold your business back. That’s where invoice finance comes in.
At Sorbus Finance, we specialise in unlocking working capital and providing financial clarity, so you can focus on what matters most—running and growing your business.
How Invoice Finance Has Changed Over Recent Years
Not too long ago, invoice finance was seen as a rigid and somewhat cumbersome funding solution. But much has changed. With the rise of fintech, smarter systems, and more flexible funding models, invoice finance has become faster, more accessible, and tailored to the way modern businesses operate.
Here’s how it’s evolved:
- Integrated Technology: Platforms now plug directly into cloud-based accounting systems like Xero, QuickBooks, and Sage. This means quicker decisions and real-time access to finance.
- Selective Invoice Financing: Businesses no longer need to finance all their invoices. You can now choose which invoices to fund, giving you full control over how and when you use the facility.
- Faster Access to Funds: Gone are the days of waiting weeks for approval. With the right provider, funds can be in your account within 24–48 hours of raising an invoice.
- Smarter Risk Assessments: Lenders are using advanced credit-checking tools to assess risk, meaning more accurate and fair funding terms.
Invoice Finance vs Invoice Factoring – What’s the Difference?
Although the terms are often used interchangeably, invoice finance and invoice factoring work in slightly different ways:
Invoice Finance (or Invoice Discounting)
- You maintain full control over your sales ledger and customer relationships.
- The arrangement is typically confidential—your clients won’t know you’re using finance.
- You chase payments as usual, while accessing up to 90% of the invoice value upfront.
Invoice Factoring
- The lender takes on responsibility for credit control and collecting payments.
- It’s usually disclosed to your customers—they’ll deal directly with the finance provider.
- It can be helpful for businesses without the resource or time to manage their credit control internally.
Both solutions provide access to cash quickly, but which you choose depends on your preferences, size of your business, and the nature of your customer relationships.
Find out more about Factoring & Discounting with The British Bank.
Who Is Invoice Finance For?
Invoice finance isn’t just for businesses in financial difficulty—it’s a smart, strategic cash flow solution that supports growth and stability. It’s particularly useful for:
- Recruitment and Temp Staffing Agencies: Manage weekly payroll even when clients pay on 30- or 60-day terms.
- Manufacturing and Wholesale: Purchase raw materials and fulfil large orders without waiting for payment from customers.
- Construction and Trade Services: Unlock funds tied up in staged payments or contract work.
- Professional Services: Consultancies, marketing firms, and legal services can keep operations running smoothly while waiting for large project fees to be settled.
If you issue invoices to other businesses on credit terms, invoice finance could help.
Benefits of Modern Invoice Finance
- ✅ Improves Cash Flow: Receive up to 90% of an invoice’s value straight away.
- ✅ Flexible: Choose which invoices to fund—no need to commit your entire ledger.
- ✅ Confidential: With invoice discounting, your customers are none the wiser.
- ✅ Scales with You: As your business grows, so does your available funding.
Things to Consider
Before choosing invoice finance, keep in mind:
- Fees: You’ll usually pay a service fee and interest on funds advanced. Make sure you understand the total cost.
- Customer Impact: With factoring, your finance provider will contact your clients. This is worth considering if client relationships are key.
- Eligibility: Your customers’ creditworthiness often plays a role in whether your invoices can be financed.
Want to learn even more about Invoice Finance? Try our Free Downloadable Guide.
Why Work with Sorbus Finance?
At Sorbus Finance, we’re not a one-size-fits-all broker. We work closely with UK SMEs to:
- 🔍 Find the right invoice finance partner—whether you want confidential discounting or full factoring support.
- 🛠 Tailor solutions to your sector, size, and growth stage.
- 🤝 Provide honest, jargon-free advice that puts your business first.
Let’s Talk Cash Flow
If your business could benefit from faster access to cash, we’re here to help. Speak to Sorbus Finance today to explore the best invoice finance options available to your business.
📞 Call us or ✉️ Enquire online—and take the first step towards financial freedom.