# Invoice Finance Preparation Checklist Source: https://www.cashbookfinance.co.uk/insights/invoice-finance-preparation-checklist Last updated: 2026-10-26 Author: Bjorn Laku, Director & Chief Marketing Officer (https://www.bjornlaku.com/) Publisher: Cashbook Finance Limited > Prepare for an invoice finance application with the documents, aged-debt data, contracts, forecasts and controls lenders use to assess a facility. FCA-registered UK lender FRN 782472 ## Prepare for an invoice finance application. One maintained checklist for every [invoice finance](https://www.cashbookfinance.co.uk/invoice-finance) discussion: the documents that evidence your ledger, the questions that surface the [all-in cost](https://www.cashbookfinance.co.uk/pricing-decisions), and the controls that keep a live facility healthy. 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** ### Documents and controls to prepare. Before approaching a provider, assemble information that shows both the value of the receivables and the way the business controls them. A complete pack makes the discussion more useful and reduces the risk of comparing indicative terms that later change when the ledger is examined in detail. Prepare #### A current aged-debt report Customer names, invoice dates, due dates, balances and disputed items clearly identified. Prepare #### Representative contracts and invoices Together with purchase orders, signed timesheets, delivery notes or other evidence that the goods or services were accepted. Prepare #### Management accounts and a 13-week forecast Showing [why funding is required](https://www.cashbookfinance.co.uk/case-studies), the expected level of use and the route to lower reliance if trading weakens. Prepare #### Credit notes, bad debts and concentration A schedule of each, plus an honest explanation of any unusual balances. Hiding exceptions only moves the problem into due diligence. Check eligibility · About 2–3 minutes, no credit search. ### Questions to ask before signing. Model the downside, not just the headline. Ask for an all-in illustration at your expected utilisation - including [service fees](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-service-fee), [discount charges](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-discount-charge), minimums, reserves and exit terms - then test a lower-sales case and a concentration case rather than relying on a headline rate. Ask #### Eligibility and the available advance Which invoices would be [eligible](https://www.cashbookfinance.co.uk/eligibility), and what would reduce the available advance for your specific ledger and customers? Ask #### The all-in cost at real utilisation What does the facility cost at expected utilisation, including service fees, minimums, reserves, audit costs and exit terms? Ask #### Ownership of the day-to-day Who owns customer communication, reporting, [reconciliations](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-reconciliation) and dispute escalation once the facility is live? Ask #### Behaviour in a downside case How does the facility behave if sales fall, a large debtor pays late, or invoice quality dips for a quarter? Check eligibility · About 2–3 minutes, no credit search. ### What to monitor after the facility starts. A facility is healthy when the numbers behind it are. These are the controls we would expect any well-run borrower to keep. Monitor #### Availability and headroom, weekly Review availability and headroom every week, not only the bank balance. Track [eligible debt](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-eligible-debt), overdue invoices, disputes, [dilution](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-dilution), concentration, average utilisation and the effective cost of funds. Monitor #### Compare against the commercials Set those measures against gross margin and [debtor days](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-debtor-days-dso). Earlier cash should not be allowed to mask a deteriorating debtor book. Monitor #### Act on the cause, not the limit If the facility is being drawn more heavily while invoice quality or profitability deteriorates, stop treating the issue as a request for a higher limit and address the commercial cause. Check eligibility · About 2–3 minutes, no credit search. ### Prepare evidence in the order it will be tested Use the guide to organise the evidence and operating decision, not simply to compare product labels. #### Commercial need Amount, purpose, timing and why customer payment terms create the gap. #### Funding base Aged debt, invoices, contracts, delivery evidence, [credit notes](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-credit-note) and disputes. #### Business capacity Accounts, bank statements, payroll, existing finance and internal reporting controls. Worked example ### Why a clean ledger releases more. A business with a £120,000 sales ledger prepares its aged debtor report before applying. Clearing old and disputed items before applying raises availability by more than the items themselves are worth to most lenders. Check eligibility · Talk it through with a director | Sales ledger (money customers owe you) | £120,000 | | --- | --- | | Less invoices over 90 days old | −£9,000 | | Less disputed invoices | −£4,000 | | Less the part of one customer above its concentration limit | −£0 | | Eligible ledger | £107,000 | | Available to draw at 85% | £90,950 | | Available if the ledger were all eligible | £102,000 | Illustrative: an 85% advance against eligible invoices. Eligibility rules, concentration limits and advance rates are set for each facility after review. ### What makes an application easier to assess? From Cashbook Finance’s perspective, the fastest initial reviews start with a reconciled aged-debtor ledger, representative invoices, evidence that goods or services have been delivered, customer terms, recent management information and a clear explanation of how the facility will be used. Missing evidence does not automatically mean a decline, but it creates questions that have to be resolved before availability can be relied on. Check eligibility · About 2–3 minutes, no credit search. #### Official sources - Prepare annual accounts for a private limited company · GOV.UK - Companies House · GOV.UK Official guidance and legislation on the rules this page refers to. They explain the rules in general; take advice on your own position. Check eligibility · About 2–3 minutes, no credit search. ### A practical note before the checklist. **Bjorn Laku: commercial judgement** A strong debtor ledger is boring in the best way: real B2B customers, clean evidence, sensible concentration and payment behaviour that can be explained. ### More guides on invoice finance - [Invoice finance for recruitment agencies](https://www.cashbookfinance.co.uk/insights/invoice-finance-recruitment-agencies) - [Late payment and UK SME cash flow](https://www.cashbookfinance.co.uk/insights/late-payment-cash-flow-uk-smes) - [Recourse vs non-recourse invoice finance](https://www.cashbookfinance.co.uk/insights/recourse-vs-non-recourse-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) --- 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.