Invoice Financing
Turn Invoices into Instant Cash Flow
Invoice Financing for UK Businesses
Enhance cash flow and accelerate your growth with invoice financing. Complete an order, issue an invoice, and receive payment in 48 hours or less. You can either keep control of your sales ledger or let the lender handle collections. Access cash from unpaid invoices or borrow funds for necessary materials. Enjoy the flexibility to focus on growing your business instead of chasing payments.
How does invoice financing work in the UK?
Invoice finance allows you to use unpaid invoices as collateral to quickly access a portion of their value, typically within 48 hours. You can receive between 75% and 99% of the invoice amount upfront while retaining control over your sales ledger and managing customer payments.
Payments from customers are directed to a trust account managed by the invoice financing company, appearing as if it’s your own account. Once the loan is repaid, and interest and fees are deducted, the remaining balance is transferred to your bank account. Most customers won’t know you’ve used the invoice as collateral.
You can use invoice financing for your entire sales ledger or select specific invoices and customers (known as selective receivables financing). It operates similarly to a revolving credit line or short-term bank loans but doesn’t require collateral or personal guarantees from owners or directors.
Commonly Asked Questions About Invoice Financing
What are the different types?
Invoice finance includes invoice financing (or discounting) and invoice factoring (or receivables financing), with options like selective invoice finance for specific accounts. The key difference is that with invoice financing, you retain control and are responsible for collecting invoices, while with invoice factoring, a third-party lender takes over collections. Invoice financing is confidential, whereas invoice factoring is typically known to your customers.
How much does invoice finance cost?
Invoice financing keeps you in control of your sales ledger and collection efforts, resulting in lower administrative costs and fees compared to invoice factoring. UK invoice financing companies typically earn through interest and credit management fees, with interest rates ranging from 1.5% to 3% over the Bank of England base rate and credit management fees between 0.25% and 0.5% of turnover. These costs are comparable to traditional business funding options like overdrafts and loans. Register with us to receive a tailored quote for terms and costs that fit your business needs.
Can a small business use invoice finance?
Yes, invoice financing could be suitable if your annual turnover is at least £30,000 and you have invoice terms of 14 days or more. Key factors for approval include meeting the minimum turnover, having business-to-business (B2B) customers, invoice terms that align with lender criteria, a strong payment history, and your most recent set of accounts.
Can I use invoice financing with bad credit?
Probably. Invoice financing approvals depend mainly on the financial strength and payment history of your customers, as well as your invoice terms, rather than your personal credit. Lenders will typically review recent accounts and possibly bank statements to ensure your business is financially stable. Sole traders and some partnerships may have their personal credit reviewed, while limited companies are assessed based on their company credit ratings.
We partner with UK invoice finance companies that cater to borrowers with poor credit. Even if you’ve been declined for other loans, you might still secure funds through invoice financing. Register with us to discuss your funding options.
Offers within 48 hours
For UK businesses that need to boost their cashflow, invoice finance can be an ideal funding solution: no need for hard assets, no personal guarantees, get up to 95% of your invoice value as soon as you raise it, and eliminate months of waiting for customers to pay.
Testimonials
“Thanks to British Business Funding, we were able to overcome a major cash flow challenge in our construction firm. The invoice financing option they provided was perfect for us—quick funding based on our unpaid invoices with minimal hassle. We appreciated the straightforward approach and the ability to choose which invoices to finance. This has not only improved our cash flow but also allowed us to take on more projects. Their team was incredibly supportive and helped us navigate the process effortlessly. It’s been a vital resource for our business.”
“British Business Funding was a game-changer for our retail business. We needed quick access to cash to manage our inventory and keep operations smooth. With their help, we secured invoice financing that let us tap into funds from our unpaid invoices almost immediately. The process was seamless, and we maintained full control over our sales ledger. The flexible repayment terms allowed us to focus on growth without worrying about cash flow. Highly recommend their services for any business looking for efficient and straightforward funding solutions.”
British Business Funding makes the application process simple. Call us or apply online now to receive quotes for invoice finance tailored to the specific demands of your business.
Eliminate the burden of slow cashflow. Rapidly release the funds you’re owed.
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Apply for Invoice Financing today and get instant cash flow for your business.
