Invoice Financing
What is Invoice Financing?
Invoice financing is about receiving pay more quickly. Instead of waiting a long time to receive invoices paid by customers, lenders fast-track most of the value straight away. In short, completed work gets paid more quickly.
You could be entitled to invoice finance if you regularly get invoices for work. Getting faster payments is a great way to ease cash-flow issues.
What is the invoice financing process?
Here is a step-by-step guide into invoice factoring and how it works:
1. Provide your goods or services to customers
2. You invoice your customers for goods and services
3. Those invoices can be sent to a factoring company and the factoring company will pay you the majority of the value – usually 80-90% – after conforming
4. Customers will pay the factoring company directly, chasing invoice payments if needed
5. The factoring company pays you what is left – minus the fee – once they have received full payment
How can you benefit from invoice financing?
You can benefit from a cash-flow surge in a number of ways. You could:
▪️Bridge short-term expenses
▪️ Make repayments on a loan
▪️ Take advantage of a business opportunity
▪️ Make a purchase that you wouldn’t have ordinarily been able to make
What else should I think about with invoice financing?
There are a number of key points to consider when it comes to invoice factoring.
▪️ Customers will want to know that you are using a factoring provider
▪️ Factoring providers are able to credit check potential customers for you
▪️ Easier for smaller or early-stage companies to get on board with this
What is the difference between secured and unsecured lending?
There are two types of borrowing routes to go down: secured and unsecured loans.
A secured loan is more common, where a business borrows money against an asset of their company. The lender now has something to hold the borrower over, and they are therefore more likely to offer them something to borrow.
Unsecured loans do not involve collateral but the lender might have a general claim against the borrower, just in case they do not make repayments on time. If a company goes bankrupt, secured creditors will typically receive a bigger amount of their claims. That means secured loans usually have lower interest rates, making them more appealing for businesses who are seeking to go down the route of asset financing.
What are the advantages to invoice financing?
▪️ Gives quick cash to your business
▪️ Has a quick turnaround time for loans
▪️ Your assets are not a risk
▪️ Provides a boost in credit sales
What are the disadvantages to invoice financing?
▪️ Your customers have to be other businesses
▪️ Longer-term costs
▪️ Chasing payments will be out of your hands
Get in touch
If you are unsure whether refinancing this pathway will be right for you, don’t hesitate in contacting us.
Call one of our compassionate experts at 0800 088 2142.
sabrina brown
5 months ago
I spoke with Yuriy and he was fantastic. Really smashing guy who helps you methodically work through the challenges and provides options. After one call I have a clear action plan and way forward which is a weight lifted off my shoulders on the best next steps to take. Thank you Yuriy real appreciate you😊😊😊😊
sabrina brown
5 months ago
I spoke with Yuriy and he was fantastic. Really smashing guy who helps you methodically work through the challenges and provides options. After one call I have a clear action plan and way forward which is a weight lifted off my shoulders on the best next steps to take. Thank you Yuriy real appreciate you😊😊😊😊
Gary
6 months ago
Yuriy rang back and absolute brilliant advice
Would reccomend to all who need a bit of advice,,,,plus it was free and sent over documentation link to resolve our issue
10 outa 10
Would reccomend to all who need a bit of advice,,,,plus it was free and sent over documentation link to resolve our issue
10 outa 10
Gary
6 months ago
Yuriy rang back and absolute brilliant advice
Would reccomend to all who need a bit of advice,,,,plus it was free and sent over documentation link to resolve our issue
10 outa 10
Would reccomend to all who need a bit of advice,,,,plus it was free and sent over documentation link to resolve our issue
10 outa 10
Sufyan Assad
6 months ago
Great service. Great advice. Would definitely use again if needs be.
Sufyan Assad
6 months ago
Great service. Great advice. Would definitely use again if needs be.
fakhar rashid
7 months ago
Very helpful and quick response appreciated
fakhar rashid
7 months ago
Very helpful and quick response appreciated
Milena D88
8 months ago
I had an excellent experience with this business helpline. The advisor, Yuriy who I spoke to was fantastic — professional, patient, and genuinely committed to helping. He took the time to understand my situation and provided clear, practical guidance that made a real difference. I’m very grateful for the support I received. Highly reccomend!
Milena D88
8 months ago
I had an excellent experience with this business helpline. The advisor, Yuriy who I spoke to was fantastic — professional, patient, and genuinely committed to helping. He took the time to understand my situation and provided clear, practical guidance that made a real difference. I’m very grateful for the support I received. Highly reccomend!
satya singh
8 months ago
satya singh
8 months ago
Nick Smith
8 months ago
Good advice, pleasant, helpful
Nick Smith
8 months ago
Good advice, pleasant, helpful
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8 months ago
Kay Kinman
8 months ago
Morven Gemmill
9 months ago
I had a really helpful discussion with Azhar . He listened carefully and guided a discussion which really made the best financial sense for me . Azhar was utterly professional and sincere and his advice meant I would not need to get further support. Azhar is honest and caring , I would highly recommend this company .
Morven Gemmill
9 months ago
I had a really helpful discussion with Azhar . He listened carefully and guided a discussion which really made the best financial sense for me . Azhar was utterly professional and sincere and his advice meant I would not need to get further support. Azhar is honest and caring , I would highly recommend this company .
Glen King
10 months ago
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Glen King
10 months ago
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Sue Richardson
12 months ago
Excellent service, very professional and courteous. I would not hesitate to recommend.
Sue Richardson
12 months ago
Excellent service, very professional and courteous. I would not hesitate to recommend.
sophia wang
12 months ago
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sophia wang
12 months ago
Thank you so much for the support
Neil Boorman
1 year ago
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1 year ago
owen Blake
1 year ago
The person I spoke to was helpful and honest about what they knew and also gave me helpful links in order to get other questions answered
owen Blake
1 year ago
The person I spoke to was helpful and honest about what they knew and also gave me helpful links in order to get other questions answered
Anish Thapa
1 year ago
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Anish Thapa
1 year ago
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Dawn Campion
1 year ago
Would highly recommend this company, Chris has provided us with exceptional service during a very challenging time
Dawn Campion
1 year ago
Would highly recommend this company, Chris has provided us with exceptional service during a very challenging time
Tim Bird
1 year ago
Thank you Business Helpline. Your team has been most reassuring to work with. At this time where I had to take the emotionally charged and difficult step of acknowledging my business couldn't continue, you were there to guide the process.
I have greatly appreciated your calm, straightforward support. My allocated Insolvency Administrator has been a reassuringly human part of a process that would otherwise have been very confusing and even more distressing than it already felt having to lose the company. Few of us study insolvency law in any depth since we rightly focus on the notion that our endeavours will be successful. Yet, when life's twists and challenges become unsurmountable, being able to turn to consummate professionals like Business Helpline for support has been of the greatest value. In times of need, these are people to trust. Thank you.
I have greatly appreciated your calm, straightforward support. My allocated Insolvency Administrator has been a reassuringly human part of a process that would otherwise have been very confusing and even more distressing than it already felt having to lose the company. Few of us study insolvency law in any depth since we rightly focus on the notion that our endeavours will be successful. Yet, when life's twists and challenges become unsurmountable, being able to turn to consummate professionals like Business Helpline for support has been of the greatest value. In times of need, these are people to trust. Thank you.
Tim Bird
1 year ago
Thank you Business Helpline. Your team has been most reassuring to work with. At this time where I had to take the emotionally charged and difficult step of acknowledging my business couldn't continue, you were there to guide the process.
I have greatly appreciated your calm, straightforward support. My allocated Insolvency Administrator has been a reassuringly human part of a process that would otherwise have been very confusing and even more distressing than it already felt having to lose the company. Few of us study insolvency law in any depth since we rightly focus on the notion that our endeavours will be successful. Yet, when life's twists and challenges become unsurmountable, being able to turn to consummate professionals like Business Helpline for support has been of the greatest value. In times of need, these are people to trust. Thank you.
I have greatly appreciated your calm, straightforward support. My allocated Insolvency Administrator has been a reassuringly human part of a process that would otherwise have been very confusing and even more distressing than it already felt having to lose the company. Few of us study insolvency law in any depth since we rightly focus on the notion that our endeavours will be successful. Yet, when life's twists and challenges become unsurmountable, being able to turn to consummate professionals like Business Helpline for support has been of the greatest value. In times of need, these are people to trust. Thank you.
David
1 year ago
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David
1 year ago
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Renika Binning
1 year ago
They were very prompt in calling me back. My adviser was very knowledgeable. He answered all of my questions and made sure I understood what I needed to do. He was very friendly and polite.
Renika Binning
1 year ago
They were very prompt in calling me back. My adviser was very knowledgeable. He answered all of my questions and made sure I understood what I needed to do. He was very friendly and polite.
nyagwa
1 year ago
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nyagwa
1 year ago
Very helpful, questions well addressed, provided with useful links. Pleasant & polite staff
Ellen Higginbottom
1 year ago
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Ellen Higginbottom
1 year ago
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Bboy JMC Gamer
1 year ago
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Bboy JMC Gamer
1 year ago
Very helpful and straight to the point, and definitely helped me solve my issue.
Dr Dasan
1 year ago
Very helpful for when you are lost in a complex business environment.
Dr Dasan
1 year ago
Very helpful for when you are lost in a complex business environment.
Brian Ahern
1 year ago
It was refreshing to receive very prompt call backs from Business Helpline. Also, the customer service agent I spoke to was courteous and understanding, and the advice I received was helpful and on-point. I'd highly recommend Business Helpline to anyone in meed of advice/help dealing with their debts.
Brian Ahern
1 year ago
It was refreshing to receive very prompt call backs from Business Helpline. Also, the customer service agent I spoke to was courteous and understanding, and the advice I received was helpful and on-point. I'd highly recommend Business Helpline to anyone in meed of advice/help dealing with their debts.
natalie garnett
1 year ago
natalie garnett
1 year ago
Mike EGS
2 years ago
I would like to thank the Business Helpline team for all their help in such a difficult situation to navigate.
It would not have been possible without Steven and Stan guiding me through the whole process. Absolutely brilliant guys to have on your side if the need be.
I throughly recommend them to anyone. Five star treatment all the way through.
It would not have been possible without Steven and Stan guiding me through the whole process. Absolutely brilliant guys to have on your side if the need be.
I throughly recommend them to anyone. Five star treatment all the way through.
Mike EGS
2 years ago
I would like to thank the Business Helpline team for all their help in such a difficult situation to navigate.
It would not have been possible without Steven and Stan guiding me through the whole process. Absolutely brilliant guys to have on your side if the need be.
I throughly recommend them to anyone. Five star treatment all the way through.
It would not have been possible without Steven and Stan guiding me through the whole process. Absolutely brilliant guys to have on your side if the need be.
I throughly recommend them to anyone. Five star treatment all the way through.
monta
2 years ago
Absolutely amazing, professional approach. Explained me properly whats the best option in my circumstances. Very happy
monta
2 years ago
Absolutely amazing, professional approach. Explained me properly whats the best option in my circumstances. Very happy
Alex Hill
2 years ago
Helpful, timely advice. Much appreciated.
Alex Hill
2 years ago
Helpful, timely advice. Much appreciated.
Philip Miller
2 years ago
Needed some advice on what steps to take regarding potentially closing a business, booked a call, Stan called on time and provided the information I needed and sent relevant links etc, great service, thanks
Philip Miller
2 years ago
Needed some advice on what steps to take regarding potentially closing a business, booked a call, Stan called on time and provided the information I needed and sent relevant links etc, great service, thanks
Modern Focus
2 years ago
Had some issues regarding a vat bill I’ve received. Haven’t had much luck with accountants so tried these for advice. Quick call and all sorted. Will use again if needed and would recommend.
Modern Focus
2 years ago
Had some issues regarding a vat bill I’ve received. Haven’t had much luck with accountants so tried these for advice. Quick call and all sorted. Will use again if needed and would recommend.
Brian Linehan
2 years ago
I spoke about a recent situation we have found ourselves in, and Stan Sklarr was very supportive and gave positive advice and recommendations to follow.
Brian Linehan
2 years ago
I spoke about a recent situation we have found ourselves in, and Stan Sklarr was very supportive and gave positive advice and recommendations to follow.
Dani Ellis
2 years ago
Dani Ellis
2 years ago
Steve Minks
2 years ago
I highly recommend Business Helpline to all businesses and they have saved me many hours of my time, by offering me solutions almost instantly. Problem was resolved within a day of receiving their support and directions.
Highly recommended service, thank you Chris!
Highly recommended service, thank you Chris!
Steve Minks
2 years ago
I highly recommend Business Helpline to all businesses and they have saved me many hours of my time, by offering me solutions almost instantly. Problem was resolved within a day of receiving their support and directions.
Highly recommended service, thank you Chris!
Highly recommended service, thank you Chris!
Paul Swith
2 years ago
Paul Swith
2 years ago
Raymond Geoffrey-Kite
2 years ago
Stan Sklar was extremely helpful and explained everything very well. He helped me win my case! A credit to your company
Raymond Geoffrey-Kite
2 years ago
Stan Sklar was extremely helpful and explained everything very well. He helped me win my case! A credit to your company
Jake Luxton
2 years ago
Stan was a careful listener. He gave me some excellent advice. Good to talk to someone with empathy
Jake Luxton
2 years ago
Stan was a careful listener. He gave me some excellent advice. Good to talk to someone with empathy
Jonathan Rouse
2 years ago
Worked with Stan to answer a few questions. All were answered in full firstly through WhatsApp and then on the phone. Great to have a place to go to get some advice. Brilliant. Thanks Stan
Jonathan Rouse
2 years ago
Worked with Stan to answer a few questions. All were answered in full firstly through WhatsApp and then on the phone. Great to have a place to go to get some advice. Brilliant. Thanks Stan
Frank Simpson
2 years ago
Very helpful
Frank Simpson
2 years ago
Very helpful
Len OMalley
2 years ago
I've found the discussions and advice given to me vetlry helpful and more importantly reassuring in a difficult position I unfortunately find myself. Thank you 😊
Len OMalley
2 years ago
I've found the discussions and advice given to me vetlry helpful and more importantly reassuring in a difficult position I unfortunately find myself. Thank you 😊
Hyeju Park
2 years ago
Hyeju Park
2 years ago
Dimitris Trangos
2 years ago
It was very helpful and timely service!
Dimitris Trangos
2 years ago
It was very helpful and timely service!
Si Hase
2 years ago
Business Helpline gave me fantastic advice when I needed it the most. They saved my business!
Si Hase
2 years ago
Business Helpline gave me fantastic advice when I needed it the most. They saved my business!
Reliant Moves
2 years ago
From the first contact that I had with Business Helpline, specifically Azher, he spoke with me at length and without any pressure at all. The advice he gave me and the options he presented were really useful.
I strongly recommend Business Helpline and it is my intention to stay in contact with them, as my own business journey continues.
I strongly recommend Business Helpline and it is my intention to stay in contact with them, as my own business journey continues.
Reliant Moves
2 years ago
From the first contact that I had with Business Helpline, specifically Azher, he spoke with me at length and without any pressure at all. The advice he gave me and the options he presented were really useful.
I strongly recommend Business Helpline and it is my intention to stay in contact with them, as my own business journey continues.
I strongly recommend Business Helpline and it is my intention to stay in contact with them, as my own business journey continues.
Norvin Mendoza
5 years ago
I had a problem with my burger business. We could not keep our debt under control. Adam spoke to me and worked out a plan for us. Very nice man ultimately. Knows his stuff!
Norvin Mendoza
5 years ago
I had a problem with my burger business. We could not keep our debt under control. Adam spoke to me and worked out a plan for us. Very nice man ultimately. Knows his stuff!
Are you eligible to claim Director Redundancy?
As a Limited Company Director you may be entitled to claim Director Redundancy – Average UK claim is £9,000*
Invoice Financing FAQs
Do I need a good credit rating to get access to invoice financing?
A good credit history is not essential if you want access to invoice financing. This is different to the normal requirements that come with many other forms of external funding, like bank loans and business overdrafts.
Businesses that have been turned down by banks will often be able to find a solution through invoice financing.
How much money could I release through invoice financing?
That depends on how much money you have tied up in unpaid invoices.
Will invoice financing impact any strong customer relationships that I have?
It shouldn’t. However, you should inform your customers about your plans to us invoice financing. Communication is key.
What are the different forms of invoice finance?
There are three forms of invoice financing:
1. Invoice Financing
2. CHOCS
3. Invoice Discounting
Invoice Financing: You provide cash in exchange for invoices and gives your business a credit control function. All of your business will be dealt with by the external company.
CHOCS: This is similar to invoice factoring but you communicate with customers yourself.
Invoice Discounting: You are funded for the total outstanding debt by the sales ledger. Your normal credit control team will act as normal, and you will have more control over the actions of your business.
