For many businesses, waiting 30, 60, or even 90 days for customer payments can create significant cash flow challenges. Invoice financing offers a solution.
How Invoice Financing Works
Invoice financing allows you to receive an advance against your outstanding invoices — typically 70-90% of the invoice value — rather than waiting for your customers to pay. When the customer pays, you receive the remaining balance minus a small fee.
Types of Invoice Finance
Factoring With factoring, the finance provider takes over your credit control and collects payments from your customers directly. This is disclosed to your customers.
Invoice Discounting With invoice discounting, you retain control of your sales ledger and collect payments yourself. This can be arranged on a confidential basis.
Benefits for Your Business
- Improved cash flow without taking on traditional debt
- Funding that scales with your business growth
- Faster access to funds compared to many other finance products
- Credit protection options available with some providers
Is Invoice Financing Right for You?
Invoice financing is particularly well-suited to B2B businesses with regular invoicing and established customers. If your business regularly invoices other businesses on credit terms, it could be worth exploring your options.