# Funding Options with Invoice Finance Source: https://www.cashbookfinance.co.uk/insights/funding-options-with-invoice-finance Last updated: 2026-10-26 Author: Bjorn Laku, Director & Chief Marketing Officer (https://www.bjornlaku.com/) Publisher: Cashbook Finance Limited > Compare four funding facilities that can complement invoice finance, including asset finance, trade finance, business loans and property-backed bridging. Funding FCA-registered UK lender FRN 782472 ## 4 funding facilities that pair perfectly with invoice finance [Invoice finance](https://www.cashbookfinance.co.uk/invoice-finance) is excellent at one job - funding the gap between invoicing and getting paid. It pairs well with other facilities that cover needs it isn't designed for. Here are four that complement it. 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 ### How much a facility could release. A distributor’s sales ledger stands at £200,000. Availability depends on the eligible ledger, not the headline total: clean, current invoices spread across customers release the most. Check eligibility · Talk it through with a director | Sales ledger (money customers owe you) | £200,000 | | --- | --- | | Less invoices over 90 days old | −£12,000 | | Less disputed invoices | −£6,000 | | Less the part of one customer above its concentration limit | −£22,000 | | Eligible ledger | £160,000 | | Available to draw at 85% | £136,000 | | Available if the ledger were all eligible | £170,000 | Illustrative: an 85% advance against eligible invoices. Eligibility rules, [concentration limits](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-concentration-limit) and [advance rates](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-advance-rate) are set for each facility after review. **In this guide** - 1. Asset finance - 2. A term loan for one-off projects - 3. A modest overdraft for short wobbles Check eligibility · About 2–3 minutes, no credit search. ### 1. Asset finance For machinery, vehicles or equipment, asset finance spreads the cost of a specific item over its useful life. Invoice finance keeps day-to-day cash flowing while asset finance funds the kit - each doing what it does best. ### 2. A term loan for one-off projects A defined project with a clear payback - a fit-out, a relocation, a marketing push - can suit a term loan, while invoice finance carries the ongoing working capital underneath it. ### 3. A modest overdraft for short wobbles A small overdraft is handy for very short-term swings. Invoice finance does the heavy lifting on structural cash-flow timing, so the overdraft stays a buffer rather than a crutch. ### 4. Trade or supply-chain finance If you import or buy stock ahead of sales, trade finance funds the purchase while invoice finance funds the sale - covering both ends of the cycle. The art is combining facilities so each covers a different need without overlap. We're happy to help you map that. Check eligibility · About 2–3 minutes, no credit search. ### Combined funding: a practical decision test Multiple facilities can strengthen a [funding structure](https://www.cashbookfinance.co.uk/case-studies) when each has a clear purpose and repayment source. They can also create hidden pressure through overlapping security, fixed repayments and covenant interactions. Start with the asset or cash-flow need, then assign the right instrument to it. #### Commercial fit Use invoice finance for recurring cash tied to receivables. Use asset finance for equipment with a useful life, trade finance for specific supplier-to-customer transactions and term debt for defined investments with durable returns. #### Evidence and eligibility Build a complete schedule of security, guarantees, repayment dates and covenants. Each provider needs to understand existing obligations, and the business needs to know which assets remain available. #### Operational fit Coordinate reporting calendars and cash sweeps. A receipt that one lender expects to reduce its balance may also be needed for payroll or another facility’s payment. Operational conflicts should be designed out. #### Alternatives Before adding another product, test whether the existing facility is mis-sized or poorly structured. More lenders are not automatically more flexibility; sometimes one appropriately designed arrangement is simpler and cheaper. Check eligibility · About 2–3 minutes, no credit search. ### Combined funding: model the downside, not just the headline Create a consolidated cash forecast showing all fees, interest, repayments and covenant headroom. Stress it for slower collections and lower sales. A structure that works only in the base case is too tight. #### Where this can go wrong The main risk is funding short-term working capital with fixed debt while also drawing heavily against invoices. Cash can look abundant initially, then contract when repayments continue through a weaker trading period. ### Combined funding: questions to ask before signing - Which invoices would be eligible, and what would reduce the available advance for combining invoice finance with other facilities? - What is the [all-in cost](https://www.cashbookfinance.co.uk/pricing-decisions) at expected utilisation, including minimums, reserves and exit terms? - Who owns customer communication, reporting, [reconciliations](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-reconciliation) and dispute escalation? - How does the facility behave if sales fall or the largest debtor pays late? Check eligibility · About 2–3 minutes, no credit search. ### Combined funding: 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. [Suitability](https://www.cashbookfinance.co.uk/eligibility), availability, pricing and terms depend on the business, the debtor ledger and the proposed structure. #### 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. Cash flow #### A way out of late-payment hell Bjorn Laku Compare #### Invoice factoring vs a business loan Bjorn Laku Benefits #### 6 ways factoring fuels growth Bjorn Laku ### Layer facilities without creating conflicting security Use the guide to organise the evidence and operating decision, not simply to compare product labels. #### Purpose Use each facility for a distinct asset or timing need rather than borrowing twice against the same cash flow. #### Security Existing debentures, charges and intercreditor requirements must be identified before terms are assumed. #### Repayment The combined structure needs enough margin and cash conversion to service every facility. ### More guides on invoice finance - [Single invoice factoring](https://www.cashbookfinance.co.uk/insights/single-invoice-factoring) - [Supply chain finance vs invoice finance](https://www.cashbookfinance.co.uk/insights/supply-chain-finance-vs-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) - [Working capital benefits](https://www.cashbookfinance.co.uk/insights/working-capital-benefits) - [Invoice finance in London](https://www.cashbookfinance.co.uk/invoice-finance-london) --- 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.