Invoice Finance

Invoice Finance is one of the most popular forms of working capital finance.

The lender will advance you money against the value of your outstanding invoices, which means that the size of your facility keeps pace with the growth of your business.

The lender takes its primary security from the invoices themselves, which can be helpful when other security options are limited.

Types of Invoice Finance:

  • Invoice discounting – where the lender advances a percentage of the invoice value and retains a proportion for itself as its fee
  • Invoice factoring – the same as invoice discounting, but the lender also provides a credit control and collection service
  • Spot factoring or single invoice finance – invoice discounting on individual invoices rather than the whole ledger
  • Invoice trading – invoice discounting in a peer-to-peer framework
  • Trade finance – invoice finance in an export and import scenario.

Things to consider are:

  • The level of discount that will applied to any invoice
  • Limits that might be applied to individual customers – known as debtor concentration limits
  • The full extent of the fees, including arrangement, administration and renewal fees.

Talk to us about whether an invoice finance facility could be right for your business. We will help you navigate the market and make sure you fully understand the costs and structure of any facility that is arranged.

Need to discuss your options?

Have a chat with one of our experts.

We are delighted – Tamara has helped us with arranging different business funding from different lenders to match our needs as we have expanded