Invoice finance helps businesses access cash tied up in unpaid invoices. It allows companies to maintain cash flow, pay suppliers, and invest in growth while waiting for customer payments.
How Invoice Finance Works
Invoice Submission: Submit your unpaid invoices to a finance provider.
Advance Payment: Receive 75%–95% of the invoice value within a few days.
Customer Payment: The customer pays the invoice to the provider.
Final Settlement: Remaining balance (minus fees) is released upon payment.
Types of Invoice Finance
1. Factoring
The financier manages collections and credit control on your behalf, freeing your time to focus on business operations.
2. Invoice Discounting
You retain control over collections, and customers remain unaware of the financing arrangement—ideal for maintaining strong business relationships.
Benefits of Invoice Finance
Improves cash flow and business stability.
Provides quick access to working capital.
Reduces dependence on loans and overdrafts.
Enables growth and expansion opportunities.
Scales with business performance and invoice volume.
Eligibility Criteria
Business must issue invoices to other companies (B2B).
Reliable invoicing and record-keeping system.
Customers with good credit history.
Frequently Asked Questions (FAQs)
What is Invoice Finance?
It’s a financing method where you sell your unpaid invoices to a lender for immediate cash, improving liquidity.
Is Invoice Finance a loan?
No, it’s not a loan. You’re receiving an advance on money already owed to your business.
Who can use Invoice Finance?
Any business that invoices other companies and experiences payment delays can benefit from invoice finance.
How fast can I get funds?
Typically within 24–48 hours after invoice submission and approval.
Will my customers know I use Invoice Finance?
In invoice discounting, customers are unaware; in factoring, the financier may communicate with them directly.
