Questions, answered
Invoice & bridging finance FAQs.
The things business owners ask us first — plus a plain-English glossary of the jargon.
No. It's an advance of money you're already owed, rather than new borrowing against the future. There's nothing extra to repay — your customers' payments settle each advance. And because the facility flexes with your sales, the funding available grows naturally as your business grows.
Only if you'd like them to. With invoice discounting the facility is completely confidential and you carry on collecting as normal. With factoring, our credit-control team collects on your behalf — many clients find customers value the professional, consistent approach.
A facility can typically be agreed and live within a few days of your enquiry. Once it's running, advances against approved invoices usually reach your account within 24–48 hours of drawdown.
It's a different tool. A term loan adds fixed debt with monthly repayments and a limit set at the outset; invoice finance frees up cash you've already earned, with no monthly repayments and headroom that rises automatically with your sales. You're judged on your sales and customers, not only your historical balance sheet.
Pricing is built from two parts:
- Service fee — for running the facility, as a percentage of turnover.
- Discount charge — the cost of the funds you actually draw, as a percentage over time.
It depends on the facility. A continuous facility like factoring or discounting commonly runs on a six-month or yearly term. Our selective / single-invoice option works on a pay-as-you-go basis with no ongoing commitment — fund only the invoices you choose.
You can add bad-debt protection to your facility, which covers you if an approved customer becomes insolvent or can't pay. Without it, facilities are usually provided on a recourse basis — we'll talk you through which approach suits your customer base.
You're likely a good fit if you:
- invoice other businesses (not consumers) on credit terms;
- have creditworthy customers, ideally a spread rather than one dominant name;
- are a UK limited company, LLP or sole trader;
- typically turn over £50k+ with six or more months of trading.
If you've already raised invoices to business customers, you can be eligible even in your early months. If you're pre-revenue and not yet billing, invoice finance won't fit yet — but it's worth a conversation about timing as you start to trade.
Most B2B sectors that invoice on credit terms — including recruitment, healthcare, haulage & logistics, wholesale & distribution, manufacturing, exporters, printing & packaging and professional services. Construction is fundable but specialist, as retentions and contract terms need the right product.
Cashbook Finance is a UK-based, FCA-registered lender (registration no. 782472; company no. 10723098). Note that commercial invoice finance to businesses is not a regulated activity in the way consumer lending is. Bridging secured against your own home is a regulated activity, and we'll always be clear about which protections apply to your facility.
A short-term loan secured against property — built to bridge the gap between a need today and a longer-term solution later. Typically 3–24 months, secured by a first or second charge, and repaid in a single move by sale or refinance. It is not a long-term mortgage; it's priced for speed and only makes sense with a credible exit.
Often not. Interest can be rolled up or retained and settled at the end when you redeem the loan — so there can be nothing to pay monthly in between. The interest and fees are agreed before the loan begins.
Four things every solid case has in common:
- a clear, credible exit — sale or refinance;
- a sensible loan-to-value against the security;
- good security the lending sits behind;
- a realistic plan and timeline to the exit.
Commonly up to 90% of the invoice value, advanced within 24–48 hours of drawdown. The remaining balance is released to you (less the agreed fee) once your customer pays.
Usually, yes. Invoices often sync automatically from cloud accounting packages such as Xero, QuickBooks or Sage, so day to day it's simply raise, upload and draw — with the funder doing the heavy lifting at set-up.
No. Pricing is the service fee and the discount charge, both agreed in plain terms before you sign. If any other charge could ever apply we set it out clearly up front — there are no surprises.
Yes. With our selective (single-invoice) option you fund only the invoices you choose, rather than your whole ledger — a flexible, low-commitment way to release cash from a large invoice when you need it.
Common uses include buying at auction, breaking a chain, purchasing before you've sold, funding a refurbishment, or releasing capital quickly against property you already own — anywhere speed matters and there's a clear exit.
The amount is sized to the property and your exit, at a sensible loan-to-value, secured by a first or second charge. We'll confirm the figure, term and costs clearly before you commit.
Plain English
The jargon, decoded.
Advance rate
The percentage of an invoice released to you up front — at Cashbook, up to 90%.
Discount charge
The cost of the funds you draw, charged over the time the invoice is outstanding.
Service fee
The charge for running the facility, usually a small percentage of your turnover.
Debtor / debtor book
Your customers who owe money, and the ledger of invoices they're due to pay.
Recourse / non-recourse
Whether you (recourse) or the funder (non-recourse, via bad-debt protection) carry the risk if a customer doesn't pay.
Confidential vs disclosed
Whether your customers are aware a funder is involved — discounting is confidential, factoring is disclosed.
Rolled-up interest
On a bridge, interest added to the loan and settled at the end, rather than paid monthly.
Exit
How a bridging loan is repaid — typically the sale of the property or a refinance onto longer-term finance.