Eligibility & Assessment

Invoice finance criteria and eligible invoices

Lenders care more about the quality of your customers than your own balance sheet. Understand exactly what providers assess before offering terms.
Clear B2B requirementsDebtor quality metricsRed flags to avoidApplication document checklist

The three pillars of eligibility

B2B Transactions

You must invoice other businesses or the public sector. B2C (consumer) sales cannot be financed.

Credit Terms

Invoices must be raised on standard credit terms (typically 14 to 90 days). Point-of-sale transactions do not qualify.

Completed Work

Goods must be delivered or services fully rendered. Invoices for future work or unapproved milestones are ineligible.

What makes an invoice 'eligible'?

Not every invoice on your ledger can be funded. Lenders assess individual invoices against strict criteria before applying their advance rate.

Usually eligible:

  • Standard invoices to UK-based businesses with good credit scores.
  • Export invoices to approved countries (requires specialist export finance).
  • Invoices backed by a clear paper trail (signed purchase orders, delivery notes, or timesheets).

Usually ineligible (Disallowances):

  • Aged debt: Invoices older than the agreed funding period (usually 90 days past invoice date).
  • Contra accounts: Invoices to a customer who is also your supplier (they may offset the debt).
  • Inter-company debt: Invoices raised to another business owned by the same directors.
  • Sale or return: Goods supplied on a sale-or-return basis.
  • Stage payments: Applications for payment or milestone invoices where the final contract is not yet complete (unless using specialist Construction Finance).

Red flags that can prevent funding

High debtor concentration

If one client represents 80% of your revenue, most lenders will decline a whole-ledger facility. You need a selective facility.

Contractual bans on assignment

If your customer contracts strictly prohibit the assignment of debt to a third party, standard factoring will not work.

Outstanding statutory demands

Unresolved winding-up petitions or severe, unmanaged HMRC arrears will stop a facility from being approved.

High credit note dilution

If you frequently issue credit notes to correct invoicing errors, lenders view the ledger as high-risk and unreliable.

Documents to prepare for application

  • A detailed aged debtor report (who owes you money, and how old the debt is).
  • A detailed aged creditor report (who you owe money to).
  • Latest full financial accounts and year-to-date management accounts.
  • 3 to 6 months of consecutive business bank statements.
  • A sample paper trail for your largest customer (Purchase Order → Invoice → Proof of Delivery).
  • Details of any existing crown arrears (HMRC/VAT) and agreed payment plans.

Who you could speak to

Graham Nash, Commercial Finance Director at Sorbus Finance

Graham Nash

Commercial Finance Director

Business loans, cash flow and wider commercial funding

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Arran Turner, Managing Director at Sorbus Finance

Arran Turner

Managing Director

General commercial finance and how Sorbus works

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  1. STEP 1

    A conversation with a broker

    You talk to a real Sorbus broker about the business, the purpose and what is affordable. No application at this stage.

  2. STEP 2

    Credit placement

    If you choose to go further, we prepare the case and decide which lenders on our panel of 150+ are worth approaching.

  3. STEP 3

    Lender assessment

    The lender, not Sorbus, underwrites and makes the credit decision. Approval is never guaranteed.

  4. STEP 4

    Documentation

    If a lender offers terms and you accept, we help coordinate agreements and payout paperwork with you.

Every step after the first is optional. You can stop after the conversation. Sorbus is a broker, not a lender.

Client journey

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Read how real businesses approached a funding goal, what Sorbus arranged and what happened next.

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Enquire about Invoice Finance Eligibility

Start with a conversation

Tell us a little about what you need and who you would like to speak to. No obligation, no credit check at this stage. We aim to respond within one business day, Monday to Friday, 9am to 5:30pm.

A preference, not an appointment. We pass it on where we can. We aim to respond within one business day, Monday to Friday, 9am to 5:30pm. This is an aim, not a guaranteed callback time.

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Prefer to call?

Speak directly to an adviser Monday–Friday, 9am–5:30pm.

01246 383500

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Unique to Sorbus Finance

Optional: Business Finance Health Check

Not sure if your ledger qualifies? Run our free Finance Health Check. We'll identify any red flags in your debtor book before you submit a formal application to a lender.

Take the short Health Check

Free · No credit check · Not required before you talk

Want the full picture? The full fact-find is longer and also optional.

In almost all circumstances we do not charge a broker fee. Should a broker fee be chargeable you will be made aware clearly in advance and it will be agreed in writing before you proceed. Read our Initial Disclosure.

Sorbus Finance acts as a credit broker/introducer, not a lender. We can introduce you to lenders on our selected panel and do not search the whole market. We do not provide advice or a recommendation. Lenders determine eligibility, pricing and final terms. We may receive commission from a lender; the amount and method can vary and may affect what you pay. Read our Commission Disclosure and Complaints Procedure.

Frequently asked questions

Common questions from UK businesses about eligibility.

Ready to discuss your requirements?

Speak to a Sorbus Finance specialist about a suitable eligibility structure for your business. Free, no-obligation comparison across lenders on our selected panel.

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