Turn unpaid invoices into earlier cashflow

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 usually manages your sales ledger and chases payments directly from your customers, who will generally be aware of the arrangement. With invoice discounting, you retain control of your sales ledger and credit control; the facility may be confidential, subject to the provider agreement and verification requirements. 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 and approved, some providers may release funds against eligible, verified invoices within 24 hours or the same day. Set-up times and ongoing drawdown speed vary, and the initial process includes assessment of your business, customers and invoices.

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.

Some discounting facilities can operate confidentially, but providers may verify debts, require notice or contact customers in defined circumstances. With factoring, the lender sends statements on your behalf. Discuss communication arrangements and customer-contact rights before signing.