Invoice finance · explained simply
Get paid now for work you've already done.
New to invoice finance? Receive most of an invoice's value straight away,instead of waiting 30, 60 or 90 days for your customer to pay.Here's exactly how it works.
Up to 90%advanced against approved invoices
24–48 hourstypical funding after setup
No property requiredfacility built around debtor quality
The simple version
What is invoice finance?
When you sell to other businesses, you send an invoice and then wait to be paid. That gap — often one to three months — is time your money sits with your customer instead of in your account. Invoice finance closes the gap.
In plain English
Invoice finance
A funding facility where, after approval and setup, a lender advances most of the value of an eligible unpaid invoice — typically up to 90% — usually within 24–48 hours of submission. When your customer pays, you receive the remaining balance, less the fees agreed in writing. It's not a loan you pay back in instalments; it's an advance on money you're already owed.
An everyday analogy: imagine you've handed a friend a cheque they can't cash until next month. Invoice finance is like a trusted partner giving you most of that cash today, then collecting the cheque later. You get the money now; they wait for the payment.
It's your money, early.You're unlocking cash you've already earned — not borrowing against the future.
It grows as you grow.The more you invoice, the more funding is available — no need to keep re-applying.
No property needed.It's secured mainly against your invoices, not your home or premises.
The cash-flow journey
From invoice raised to cash available.
Fit check
Useful when the sales are real, but the cash arrives late.
Likely a good fit if
- You sell to other businesses on credit terms.
- Your customers are established and usually pay, but not quickly.
- You need working capital for payroll, suppliers, stock or growth.
- You want funding that can scale as your invoice ledger grows.
Probably not the first answer if
- Most sales are to consumers rather than businesses.
- The invoices are disputed, overdue or hard to evidence.
- You need a one-off lump sum unrelated to customer invoices.
- Your customers cannot be verified or contacted where required.
Proof of fit
Examples that show when invoice finance earns its place.
Weekly payroll before client payment
Approved timesheets supported a facility that bridged payroll while end clients paid on 45-day terms.
Growth order without waiting 60 days
A larger repeat order was funded against raised invoices, letting the business pay suppliers and preserve margin.
Contractors paid before invoices cleared
Valid B2B invoices provided enough visibility to fund delivery costs without taking on a standard loan.
EB
Endrit Beqaj, Director
“The first question is not the headline advance rate. It is whether the invoices are real, evidenced and owed by customers likely to pay.”
Ledger evidence in practice
What the ledger has to prove.
Recurring payroll against approved timesheets
A recruitment business needed weekly payroll funding while established end clients paid on 45-day terms. The need repeated each billing cycle rather than arising from a one-off shortfall.
Repeatable needApproved timesheets45-day terms
Evidence that turns work into a receivable
Signed timesheets, raised invoices, an aged debtor ledger and payment history showed completed work, identifiable debtors and a credible collection route.
Completed workDebtor historyLedger visibility
Dilution, disputes and concentration
Unapproved timesheets, frequent credit notes, disputed invoices or one debtor dominating the ledger can reduce availability even where turnover looks strong.
DilutionDisputesConcentration
BL
Bjorn Laku, Director
“The useful question is not ‘what advance rate can I get?’ It is whether the ledger is strong enough to advance against repeatedly without creating disputes later.”
Explore the detail
Detailed guidance, when you need it.
The core decision is simple: eligible B2B invoices, credible evidence and customers who are likely to pay.Open only the detail relevant to your situation.
01Four simple steps.Open
How it works
Four simple steps.
Once you're set up, it fits around how you already work.
1
You raise an invoice
Carry on invoicing your customers exactly as you do today, on your usual payment terms.
2
We advance up to 90%
Once the facility is live, submit an eligible invoice. Most of its approved value typically reaches your account within 24–48 hours.
Typical drawdown: 24–48h after setup3
Your customer pays
They pay as normal. With confidential discounting they need never know a funder is involved; with factoring, we can collect for you.
4
You get the balance
We release the remaining amount, minus a small, agreed fee — and your funding refreshes for the next invoice.
02£50,000 invoice, made simple.Open
A worked example
£50,000 invoice, made simple.
A £50,000 invoice on 30-day terms
Day 0 — raised
£50,000
You invoice your customer.
Day 1–2 — advanced (90%)
£45,000
After setup, an eligible invoice is typically drawn within 24–48 hours.
Day 30 — balance
£4,000
The held-back £5,000 less a ~2% fee.
You receive £49,000 in total — the cost of having £45,000 a month early is around £1,000 (about 2% of the invoice).
Illustrative only: a discount charge of around 2% of the invoice value. Actual rates and advance percentages vary by business, sector and customers.
03One idea, a few flavours.Open
The options
One idea, a few flavours.
Invoice discounting
You keep collecting and stay in control. Usually completely confidential — your customers see no change.
Factoring
We run credit control and chase payments for you — lifting the admin so you can focus on the work.
Timesheet finance
Built for recruiters: pay your contractors weekly while clients pay you monthly.
Selective / single invoice
Fund just one invoice or one customer when you need to — no whole-ledger commitment.
Bad-debt protection
Optional cover so you're protected if an approved customer can't pay.
Growing with you
As your sales rise, your available funding rises too — automatically.
04Choose the structure that matches how you operate.Open
Compare the routes
Choose the structure that matches how you operate.
The table is a practical starting point. The final structure depends on assessment and the facility terms.
| Product | Ongoing or occasional | Customer awareness | Credit control | Typical use |
|---|---|---|---|---|
| Invoice discounting | Ongoing | Often confidential | Business retains control | Established finance teams |
| Invoice factoring | Ongoing | Usually disclosed | Collections support included | Funding plus debtor management |
| Selective invoice finance | Occasional | Depends on structure | Varies | One-off funding requirements |
| Timesheet finance | Ongoing | Structure dependent | Varies | Recruitment and temporary labour |
| Trade finance | Transaction based | Varies | Not applicable | Confirmed orders and goods purchases |
Not sure which row fits?
Use the invoice finance calculator →Use the five-question selector for a likely route, then confirm suitability with the team.
05Harder questions before choosing invoice finance.Open
Decision questions
Harder questions before choosing invoice finance.
What would make this difficult to fund?
Concentrated debtors, disputed invoices, weak evidence of delivery, consumer debtors or customers that cannot be verified.
What improvesthe decision?
Clean aged debtors, clear payment history, signed terms, sample invoices and a straight answer on what the cash is needed for.
What should I prepare before applying?
An aged debtor report, recent invoices, customer names, payment terms and a short explanation of payroll, supplier or growth pressure.
06What we need to review invoice finance.Open
Before you apply
What we need to review invoice finance.
What speeds review
- A current aged debtor report
- Recent sales ledger and sample invoices
- Top customer list with normal payment terms
- Proof of delivery, signed timesheets or purchase orders where relevant
- Terms of business and any dispute or contra history
What slows or weakens the case
- Consumer sales rather than B2B debtors
- Invoices that are disputed, hard to evidence or already seriously overdue
- One customer dominating the ledger without enough payment history
07When this is the wrong answer.Open
Lending judgement
Where invoice finance stops fitting.
Invoice finance is not a substitute for completed, enforceable B2B debt.Where sales are consumer-led, heavily disputed or not yet earned, another structure—or no funding—is the honest answer.
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 →
Quick answers
Invoice finance FAQs.
Invoice finance is not a conventional term loan repaid through fixed instalments. It is funding advanced against eligible receivables, and the customer payment normally clears the related advance. Legal and accounting treatment depends on the agreed structure.
Only if you want them to. Invoice discounting is confidential; factoring is disclosed because we handle collections on your behalf.
Two simple parts: a service fee for running the facility, and a discount charge for the funds you draw — both agreed up front in plain terms. Roughly 2% of the invoice in the example above.
After the facility has been approved and set up, an eligible invoice is typically drawn within 24–48 hours of submission. Setup timing is separate and depends on verification, due diligence, documentation and the proposed structure.
Commonly up to 90% of each invoice upfront, with the balance released (less fees) when your customer pays. Facilities run from £10,000 to £1m and grow automatically as your sales grow.
Standard facilities are “with recourse” — if an invoice is still unpaid after an agreed period (commonly ~90–120 days), the advance on that invoice reverses. Optional bad-debt protection covers you if a customer becomes insolvent.
Verified anonymised case study
Recruitment business funds weekly payroll while customers pay monthly
A recruitment firm needed payroll liquidity while customers paid in 30–60 days.
£150,000–£250,000 facility
Two customers dominated the ledger; one required approved timesheets.
How the case progressed
A timesheet-backed facility with concentration controls stabilised payroll funding.
Managing Director, UK Recruitment Company
“The team understood that our main pressure point was weekly payroll rather than a lack of profitable work. The process focused on the quality of our customers, approved timesheets and the invoices we had already earned.”