# CHOCs: Client Handles Own Collections Source: https://www.cashbookfinance.co.uk/insights/chocs-client-handles-own-collections Last updated: 2026-10-26 Author: Bjorn Laku, Director & Chief Marketing Officer (https://www.bjornlaku.com/) Publisher: Cashbook Finance Limited > What CHOCs (client handles own collections) means in invoice finance, how it differs from factoring and confidential discounting, and who it suits. Guide FCA-registered UK lender FRN 782472 ## CHOCs explained: client handles own collections CHOCs (client handles own collections) is a form of invoice finance where the arrangement is disclosed to your customers - they are told to pay into an account controlled by the funder - but your own team keeps chasing and collecting. It sits between factoring (the funder collects) and confidential invoice discounting (customers are not told). Written and reviewed by [Bjorn Laku](https://www.cashbookfinance.co.uk/bjorn-laku), Director & CMO. INV-2048 · Arden Health Group Illustration Cash received · this invoice A £50,000 invoice on 30-day terms - **Invoice value** £50,000 - **Paid to you, day 1–2** £45,000 - **When your customer pays** £4,000 Invoice value · £50,000 Illustrative: a 90% advance and a discount charge of about 2% of the invoice. Rates and advances vary by business, sector and customers. Check eligibility **£30m+** funded · **100+** UK businesses since 2019 · London SE1 - FCA **782472** - ICO **ZB545200** - Companies House **10723098** Worked example ### A CHOCS invoice from start to finish. A wholesaler on a CHOCS facility invoices a retailer £40,000 on 45-day terms and chases the payment itself. Collections stay with you, so a customer who pays late costs you the extra charge, and your own credit control decides how long that is. Check eligibility · Talk it through with a director | Invoice value, on 45-day terms | £40,000 | | --- | --- | | Advanced within 24–48 hours (85%) | £34,000 | | Discount charge, about 2% per 30 days, for 45 days | £1,200 | | Paid to you when your customer pays | £4,800 | | Total cost of funding this invoice | £1,200 (3% of the invoice) | | If your customer pays 15 days late | +£400 in charges | Illustrative: up to 85% advanced and a [discount charge](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-discount-charge) of about 2% of the invoice per 30 days. Rates, advances and any [service fee](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-service-fee) vary by business, sector and customers, and are confirmed in writing before you commit. **In this guide** - Where CHOCs fits - Why a business might choose it - What to weigh up Check eligibility · About 2–3 minutes, no credit search. ### Where CHOCs fits Where CHOCs fits | | Factoring | CHOCs | Confidential invoice discounting | | --- | --- | --- | --- | | Customers told a funder is involved | Yes | Yes | No | | Who chases payment | The funder | Your business | Your business | | Typical business | Smaller or growing firms wanting collections support | Firms with capable credit control that do not need confidentiality | Established firms with strong systems and reporting | ### Why a business might choose it - **You keep the customer relationship.** Your team does the chasing, in your own style. - **It can be available earlier than confidential discounting.** Because payments go to a funder-controlled account, the funder has more visibility, which can make it an option for businesses that are not yet ready for confidential terms. - **Often lower cost than full factoring,** as the funder is not running your collections. Check eligibility · About 2–3 minutes, no credit search. ### What to weigh up - Customers will know a funder is involved (usually through a notice on invoices). - Your credit control has to be consistent: availability falls if collections slip. - Reporting and [reconciliation](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-reconciliation) are still required. Compare the main options in [factoring vs invoice discounting](https://www.cashbookfinance.co.uk/insights/factoring-vs-invoice-discounting), or see the [invoice factoring](https://www.cashbookfinance.co.uk/invoice-factoring) and [invoice discounting](https://www.cashbookfinance.co.uk/invoice-discounting) pages. ### CHOCs: a practical decision test [CHOCs](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-chocs-client-handles-own-collections) fits when you want your own team to stay in charge of collections but do not need the arrangement to be confidential. #### Commercial fit Suits businesses with capable credit control that are not yet ready, or do not want to pay, for [confidential invoice discounting](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-disclosed-vs-confidential). #### Evidence and eligibility Funders look for consistent collections, clean ledger reporting and customers who pay into the controlled account. #### Operational fit Your team still chases every invoice. Availability falls if collections slip, so staffing and discipline matter. #### Alternatives Full factoring if you want collections handled for you; confidential invoice discounting once systems and track record support it. Check eligibility · About 2–3 minutes, no credit search. ### CHOCs: model the downside, not just the headline Model what happens to availability if [debtor days](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-debtor-days-dso) lengthen by two or three weeks, and whether your team can carry the collections workload in a busy month. #### Where this can go wrong Customers will see the funder's notice on invoices. If a key customer would react badly to disclosure, discuss it before choosing a disclosed structure. ### CHOCs: questions to ask before signing - How will customers be notified, and what will invoices say? - What reporting is required, and how often? - How is availability calculated as debtor days change? - What would it take to move to confidential terms later? ### CHOCs: documents and controls to prepare Every invoice finance discussion goes better with the same core pack: a current [aged-debt report](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-aged-debt-report), representative contracts and invoices with delivery or acceptance evidence, recent management accounts with a short cash forecast, and an honest schedule of [credit notes](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-credit-note), bad debts and customer concentration. We keep one maintained resource covering the full pack, the questions that surface the all-in cost, and what to monitor once a facility is live - [read the invoice finance preparation checklist](https://www.cashbookfinance.co.uk/insights/invoice-finance-preparation-checklist). This guide is general information, not a recommendation or an offer of finance. #### See what your invoices could release Tell us how your business invoices and a director will give you a straight, no-obligation view on fit - usually within a day or two. Compare #### Factoring vs invoice discounting: which one fits your business? Bjorn Laku Discounting #### Invoice discounting in the UK: confidential cash from your ledger Bjorn Laku Guide #### The complete guide to invoice factoring (without the jargon) Bjorn Laku ### Show that your collections process works Use the guide to organise the evidence and operating decision, not simply to compare product labels. #### Credit control Set out who chases, when, and how disputes and promises to pay are recorded. #### Reporting Agree how often you will report collections and changes to the ledger. #### Fallback Understand when the funder can take over collections, and what triggers it. [Compare five funding options side by side](https://www.cashbookfinance.co.uk/compare) ### More guides on invoice finance - [What makes a debtor ledger attractive](https://www.cashbookfinance.co.uk/insights/what-makes-a-debtor-ledger-attractive) - [Why invoice finance applications are declined](https://www.cashbookfinance.co.uk/insights/why-invoice-finance-applications-are-declined) - [Construction invoice finance: CIS and retentions](https://www.cashbookfinance.co.uk/insights/construction-invoice-finance-cis-retentions) - [Facilities that pair with invoice finance](https://www.cashbookfinance.co.uk/insights/funding-options-with-invoice-finance) - [Invoice factoring vs business loan](https://www.cashbookfinance.co.uk/insights/invoice-factoring-vs-business-loan) - [How invoice finance fixes cash flow](https://www.cashbookfinance.co.uk/insights/invoice-finance-cash-flow) --- Cashbook Finance. Cashbook Finance Limited is registered with the Financial Conduct Authority under Firm Reference Number 782472. Company number 10723098. Registered office: Cumberland House, 24–28 Baxter Avenue, Southend-on-Sea, Essex SS2 6HZ. Registered with the Information Commissioner’s Office under reference ZB545200. All finance is subject to eligibility, satisfactory due diligence, credit approval and agreed terms. Invoice finance, trade finance and bridging finance may not be suitable for every business. The availability, structure, amount, pricing, fees, security requirements and completion timescales of any facility will depend on the applicant’s circumstances, the quality of the supporting evidence provided and our assessment of the proposed transaction. Any figures, examples, rates or timescales shown on this website are for illustrative purposes only and do not constitute an offer, commitment or guarantee of finance. Terms and conditions apply. Bridging finance is secured against property. Your property may be repossessed if you do not maintain repayments on a loan secured against it. Applicants should obtain independent legal, financial and tax advice where appropriate.