What is Invoice Finance?
Waiting for payment of invoices can be a huge burden on your business. Discover how Invoice Finance might be able to help.
Invoice Financing allows invoices to be paid early
Funding providers may offer payment of up to 98% of your unpaid invoices. You can select individual invoices that you want to finance, or get financing for your full sales ledger. You can receive money within a day, meaning you don’t have to wait weeks or even months for outstanding payments. This can relieve any immediate cashflow problems and give you the opportunity to focus on what’s important – growing your business.
Amount
85-98%
of invoices
Funding amount of unpaid invoices due for collection
Period
90/120
days
Depending on length of invoice
Cost
2% - 5%
of value
Annualised costs of financing vary between 2% - 5% of financing volume
Invoice Finance at a glance
3 month's trading
To apply for invoice finance, you must be trading for more than three months. Typically, your revenue must be equal to, or more than £100,000 per year, although there are new providers that only require £40,000 per year. It’s particularly suited for businesses that are fast growing because the access to finance grows with turnover.
Customer track record
You don’t need to have a perfect credit record, but your customers should have a good track-record of paying suppliers.
Sales ledger
You’ll need to share the details on the value of outstanding invoices or upload your sales ledger.
Personal guarantees
A personal guarantee – an agreement that means a director takes on a certain level of personal responsibility for the debt through their own finances/assets - is sometimes required.
Your Resources
SME Funding Guide - Understand your options
Produced in association with our partners at KPMG Small Business Accounting.
Case studies – How we’ve helped
How Funding Xchange helps businesses access the finance they need on the best terms.
More questions? Get in touch
Call us on 020 3695 3206 or email for help researching your business funding.
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