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Invoice finance FAQs
Straight answers to questions about funding, costs and customer payments.
Invoice finance provides funding linked to eligible unpaid invoices. Its structure and repayment arrangements differ from a conventional fixed-term business loan.
The amount depends on eligible invoices, customer creditworthiness and the provider’s agreed advance rate and funding limit.
With factoring, customers are usually aware of the provider. Some invoice discounting facilities can be confidential, depending on eligibility and terms.
Charges may include a service fee and a discount charge, plus other fees. Compare the total cost, minimum fees, contract period and exit terms.
Your responsibilities depend on the agreement. Many facilities require you to repay advances on unpaid invoices. Any bad-debt protection has its own terms and exclusions.
What should I prepare before enquiring?
An outline of your business, annual turnover, customer payment terms and outstanding invoices is a useful starting point. A provider may later request financial accounts, an aged debtor report and supporting contracts.
Is funding guaranteed?
No. Availability, advance levels and terms depend on assessment by the finance provider. Completing an enquiry does not commit you to a facility or guarantee an offer.
Explore your invoice finance options
Tell us about your business, your invoices and what you want funding to achieve.