Collections support during rapid growth
The ledger is expanding faster than the internal finance team can chase it, so disclosed collection support protects working capital.
Invoice factoring · explained simply
Get paid faster, and let us chase the invoices.
Release up to 90% of each invoice as soon as you raise it,and hand the job of chasing and collecting payment to us —so the cash arrives sooner and the admin leaves your desk.
The simple version
What is invoice factoring?
Factoring is invoice finance with credit control included. The funder advances most of each invoice up front and then manages collections on your behalf — issuing statements, chasing politely and banking the payments. The balance, less a fee, is released once your customer pays. Because the funder collects, the arrangement is usually disclosed to your customers.
In plain English
Invoice factoring
An invoice finance facility where the funder advances up to 90% of an invoice within 24–48 hours and also runs your sales-ledger collections. Customers pay the funder directly (a disclosed arrangement), and bad-debt protection can often be added.
In short: it’s invoice finance with a credit-control team attached. You get the cash quickly, and someone else takes on the chasing.
Who it’s for
Who it suits best.
Factoring fits businesses that would rather grow than chase — and would value professional collections doing it for them.
Growing businesses
Sales are climbing faster than your admin can keep up — factoring scales your cash flow and your collections together.
No in-house credit control
You don’t have a dedicated team to chase payments, or you’d simply rather not spend your time doing it.
Time-poor owners
You’d rather be running and growing the business than ringing customers about overdue invoices.
Worried about bad debt
You want the option of protection against a customer who can’t pay, alongside professional collections.
Slow-paying customers
Your customers stretch their terms, and firm, consistent chasing would get you paid sooner.
B2B on credit terms
You invoice other businesses, and the gap between invoicing and payment is squeezing your cash flow.
How it works
Funding up front, chasing off your desk.
How invoice factoring works
Funding up front, with collections handled on your behalf.
1Raise your invoiceYou invoice your customer and send us a copy.
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2Draw the cashUp to 90% is advanced to you within 24–48 hours.
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3We collectWe chase and collect payment from your customer for you.
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4Balance releasedYou receive the balance, less a fee, when they pay.
Because we manage collections, factoring is usually disclosed — large customers process these arrangements every day, and we always chase in a way that protects your relationships.
The benefits
What it does for your business.
You get the cash and the time back — the funding lands fast and the chasing stops being your job.
Cash in 24–48 hours
Up to 90% of every invoice is advanced as soon as you raise it.
Collections handled for you
We chase and collect on your behalf — professionally and in your name — so the admin disappears.
Time back for the business
Stop spending hours on credit control and put that time into customers and growth.
Optional bad-debt protection
Add cover so you’re protected if an approved customer fails to pay.
Often improves payment times
Consistent, professional chasing tends to bring payments in faster than ad-hoc reminders.
Funding that grows with you
As your invoicing increases, so does the cash available — with no need to renegotiate.
Collections proof
Factoring earns its place where funding and professional collections need to work together.
A clear notice and consistent contact route
Customers receive one professional explanation of the assignment and know exactly where remittances and queries should go.
Management time returns to the business
The finance team can focus on invoicing accuracy and disputes while routine chasing and cash allocation are handled consistently.
EB
Endrit Beqaj, Director
“Good factoring should feel organised to the customer. Clear notices, accurate statements and sensible collections matter as much as the advance.”
Evidence, not theory
An example structure.
Invoice factoring use case
Timing gapEvidence-ledDirector review
The funding logic
The lender needs to see the asset being funded, the evidence that supports it and the route back to repayment.
FitRiskRepayment
What could weaken it
If the evidence is thin, the counterparty is weak or the repayment route is vague, the headline product label does not matter.
DisputesConcentrationTiming
BL
Bjorn Laku, Director
“Factoring is not just money against invoices. It is a funding and collections structure, so debtor behaviour matters from day one.”
Decision questions
Harder questions before choosing invoice factoring.
What would make factoring unsuitable?
Customers that cannot be contacted, disputed invoices, unsuitable debtor relationships or weak evidence of delivery.
What improves
the decision?
Established B2B customers, clear invoice evidence, agreed terms and openness about debtor communication.
What should I prepare before applying?
Aged debtors, sample invoices, customer contact details and contract or delivery evidence.
Lender judgement
What gets reviewed first.
EB
Endrit Beqaj: what I look for first
Before recommending invoice factoring, I want to understand debtor communication, credit control support and whether disclosed funding fits customer relationships. If that cannot be explained clearly, the structure is probably not ready.
Before you apply
What we need to review invoice factoring.
What speeds review
- Aged debtor report and customer list
- Sample invoices and proof of delivery
- Customer payment terms and contact points
- Dispute, credit-note and overdue history
- Monthly invoice run and funding need
What slows or weakens the case
- Customers that cannot be contacted or verified
- Invoices already disputed before funding
- Large old debts presented as fresh working capital
Lending judgement
When this is the wrong answer.
The most expensive funding mistake is forcing a product onto the wrong problem.
A clean refusal is better than a weak facility.
Why invoice finance gets declinedWeak debtors, disputed invoices and poor evidence beat optimistic turnover every time.Read →What makes a ledger attractiveRepeatable debtor quality matters more than a single large invoice.Read →What slows down bridgingExit, title, valuation and solicitor speed determine whether short-term funding is realistic.Read →
Prepare properly
Download the right checklist.
Preparation PDF
Invoice factoring checklist
Use this before applying so the first conversation is specific rather than exploratory.Download PDF →Application prepWhat to prepare
A cross-product guide to references, evidence and secure document submission.Download PDF →Decision contextPricing and decisions
Review the commercial factors that affect pricing, availability and structure.Read guide →Plan with context
Understand the structure before you apply.
Compare options
Decision pages for common trade-offs.
Use these before applying if you are weighing one type of funding against another.
Cash flowFactoring vs
Invoice finance vs business loan
When to fund invoices rather than add fixed debt.
Compare →ControlFactoring vs
discounting
Choose between supported collections and confidential control.
Compare →PropertyBridging vs development finance
Understand when a bridge is enough and when a build facility is needed.
Compare →Quick answers
Invoice factoring FAQs.
We do. With factoring, our credit-control team manages collections on your behalf — professionally and courteously — so you don’t have to.
Yes — factoring is usually disclosed, because customers pay us directly. This is routine; large organisations handle these arrangements as a matter of course.
Often, yes. Bad-debt protection can be added so you’re covered if an approved customer becomes insolvent and can’t pay.
Factoring includes credit control and is usually disclosed; discounting leaves collections with you and is confidential. Factoring suits businesses that want the chasing taken off their hands.
Factoring suits growing businesses that invoice other businesses on credit terms. We’ll look at your turnover, customers and how you invoice to confirm fit.
Operational detail
Funding plus an outsourced collections service
The service is disclosed to debtors and the collections approach must protect both cash conversion and the customer relationship.
Notice and payment
Debtors are told where to pay and how the facility operates.
Collections cadence
Statements, reminders, dispute escalation and account reconciliation follow an agreed process.
Service standards
The borrower should understand who contacts customers, how disputes are handled and how reporting is shared.