# Invoice Factoring UK | Credit Control Source: https://www.cashbookfinance.co.uk/invoice-factoring Last updated: 2026-10-31 Publisher: Cashbook Finance Limited > UK invoice factoring that releases cash from approved unpaid invoices while Cashbook Finance supports credit control, collections and ledger administration. FCA-registered UK lender FRN 782472 ## 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. [Start an application](https://www.cashbookfinance.co.uk/apply?product=invoice) Not sure yet? [Check eligibility](https://www.cashbookfinance.co.uk/eligibility) in 2–3 minutes, or [talk to a director](https://www.cashbookfinance.co.uk/book-call). Illustration One invoice, start to finish A £50,000 invoice on 30-day terms - **Invoice raised** · Day 0 - **Advance paid** · 24–48 hrs after setup - **We collect** · on your terms - **Balance released** · less fees - **Paid to you, day 1–2** £45,000 - **Who chases payment** Our team - **When your customer pays** £4,000 Invoice value £50,000 Advance rate 70% 80% 90% Customer terms 30 60 90 Illustrative only: fees of around 2% of the invoice value, here about **£1,000**. Actual rates and advance percentages vary by business, sector and customers. Check eligibility The simple version ### What is invoice factoring? [Factoring](https://www.cashbookfinance.co.uk/insights/invoice-factoring-guide) 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 short:** it’s invoice finance with a credit-control team attached. You get the cash quickly, and someone else takes on the chasing. **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. **Cashbook Finance facts.** Cashbook Finance factoring is designed for UK B2B businesses that want funding plus disclosed credit control. After approval and setup, up to 90% of an eligible invoice may typically be available within 24–48 hours. Suitability and pricing depend on debtor quality, ledger concentration, disputes, [dilution](https://www.cashbookfinance.co.uk/insights/invoice-finance-glossary#term-dilution), trading evidence and the proposed facility. The benefits #### What invoice factoring does for your business. ##### Cash in 24–48 hours Up to 90% of every invoice is advanced as soon as you raise it. ##### Funding that grows with you As your invoicing increases, so does the cash available – with no need to renegotiate. ##### 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. ##### Often improves payment times Consistent, professional chasing tends to bring payments in faster than ad-hoc reminders. ##### Optional bad-debt protection Add cover so you’re protected if an approved customer fails to pay. [About bad-debt protection](https://www.cashbookfinance.co.uk/bad-debt-protection) How it works ### Funding up front, chasing off your desk. 1 #### Raise your invoice Day 0 · your usual terms You invoice your customer and send us a copy. 2 #### Draw the cash Typical drawdown: 24–48h after setup Up to 90% is advanced to you within 24–48 hours. 3 #### We collect Day 30–90 · our credit control We chase and collect payment from your customer for you. 4 #### Balance released On collection · less the fee You receive the balance, less a fee, when they pay. What your customer sees Factoring Discounting Where to pay, and who calls. · No change at all. 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. With discounting you keep collecting, and the arrangement is usually confidential: [see invoice discounting](https://www.cashbookfinance.co.uk/invoice-discounting). [Factoring vs discounting](https://www.cashbookfinance.co.uk/insights/factoring-vs-invoice-discounting) Facility conditions #### 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. Who it’s for ### Who invoice factoring suits best. Suitability profile #### 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. #### 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. Sounds like you? [Check eligibility](https://www.cashbookfinance.co.uk/eligibility) Before you apply #### What we need to review invoice factoring. “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.” [Endrit Beqaj](https://www.cashbookfinance.co.uk/endrit-beqaj)What I look for first ##### Prepare properly - [**Invoice factoring checklist** · Preparation PDF · Use this before applying so the first conversation is specific rather than exploratory.](https://www.cashbookfinance.co.uk/downloads/invoice-finance-checklist.pdf) - [**What to prepare** · Application prep · A cross-product guide to references, evidence and secure document submission.](https://www.cashbookfinance.co.uk/downloads/application-preparation-guide.pdf) - [**Pricing and decisions** · Decision context · Review the commercial factors that affect pricing, availability and structure.](https://www.cashbookfinance.co.uk/pricing-decisions) ##### 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 Upload them in the client portal, encrypted in transit and at rest **Verify before you share documents.** Three independent registers hold the record for this firm. Cashbook Finance Limited is registered with the Financial Conduct Authority under Firm Reference Number 782472. Registered office: Cumberland House, 24–28 Baxter Avenue, Southend-on-Sea, Essex SS2 6HZ. Companies House 10723098: Active · incorporated 2017. ICO register ZB545200. The register links at the top of this page open each official record. All published figures are collected on the [company facts](https://www.cashbookfinance.co.uk/company-facts) page. Worked example ### One factored invoice. You factor a £50,000 invoice on 30-day terms and our team chases the payment. A credit-control service fee may be added for factoring and is quoted per facility before you commit. - **Invoice value, on 30-day terms** £50,000 - **Advanced within 24–48 hours (90%)** £45,000 - **Discount charge, about 2% per 30 days, for 30 days** £1,000 - **Paid to you when your customer pays** £4,000 - **Total cost of funding this invoice** £1,000 (2% of the invoice) - **If your customer pays 30 days late** +£1,000 in charges Illustrative: up to 90% advanced and a discount charge of about 2% of the invoice per 30 days. Rates, advances and any service fee vary by business, sector and customers, and are confirmed in writing before you commit. Quick answers ### Invoice factoring FAQs. [All invoice finance options](https://www.cashbookfinance.co.uk/invoice-finance) · [Case studies](https://www.cashbookfinance.co.uk/case-studies) · [Factoring vs discounting](https://www.cashbookfinance.co.uk/insights/factoring-vs-invoice-discounting) · [Invoice finance vs business loan](https://www.cashbookfinance.co.uk/insights/invoice-finance-vs-business-loan) · [Invoice finance in London](https://www.cashbookfinance.co.uk/invoice-finance-london) · [Invoice factoring guide](https://www.cashbookfinance.co.uk/insights/invoice-factoring-guide) **Who chases my customers?** We do. With factoring, our credit-control team manages collections on your behalf – professionally and courteously – so you don’t have to. **Will my customers know?** Yes – factoring is usually disclosed, because customers pay us directly. This is routine; large organisations handle these arrangements as a matter of course. **Can I be protected if a customer doesn’t pay?** Often, yes. [Bad-debt protection](https://www.cashbookfinance.co.uk/bad-debt-protection) can be added so you’re covered if an approved customer becomes insolvent and can’t pay. **How is it different from discounting?** 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. **Is my business the right size?** 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. **How quickly can a factoring facility be set up?** Once the facility is approved and the paperwork is signed, eligible invoices are typically funded within 24–48 hours. Setup time depends on how quickly ledger information, contracts and customer details can be verified. ### Guides on invoice factoring - [Recourse vs non-recourse invoice finance](https://www.cashbookfinance.co.uk/insights/recourse-vs-non-recourse-invoice-finance) · Compare - [Single invoice factoring](https://www.cashbookfinance.co.uk/insights/single-invoice-factoring) · Guide - [Compare funding options](https://www.cashbookfinance.co.uk/compare) · Compare Start an application ### Get paid sooner, without the chasing. [Start an application](https://www.cashbookfinance.co.uk/apply?product=invoice) Not sure yet? [Check eligibility](https://www.cashbookfinance.co.uk/eligibility) in 2–3 minutes, or [talk to a director](https://www.cashbookfinance.co.uk/book-call). Introducing a client? [Work with us as an intermediary](https://www.cashbookfinance.co.uk/intermediaries). --- 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.