Home / Invoice finance FAQs
Invoice finance FAQs
Before discussing a facility, understand what determines usable cash, who collects payment and which commitments stay with your business.
Availability is linked to accepted customer debts and the facility’s limits rather than simply a lump sum repaid on a fixed schedule. The legal structure and settlement obligations depend on the agreement; read those terms before treating the products as interchangeable.
Not every debt necessarily qualifies. Disputes, age, customer limits and reserves may reduce the funding base, and the advance is normally a proportion of that base. Ask the provider to show the calculation using your actual ledger.
Factoring usually introduces a provider into collections and payment instructions. Discounting normally leaves follow-up with your team, with confidential options in some cases. Confirm the precise customer communications and account arrangements.
Use the same turnover, expected drawings and collection times for each proposal. Include service and funding charges, minimum fees, optional extras and exit commitments. Our cost guide explains how to compare these.
The agreement decides that. Recourse can leave the business responsible for an advance on a debt that is not paid. Any protection has limits and conditions; do not assume a disputed invoice or every customer failure is covered.
What information makes a first enquiry useful?
Start with what your business supplies, approximate turnover, unpaid invoice value and usual customer payment times. Explain the cash need and its date. You do not need to send sensitive identity documents in a general enquiry.
If the discussion progresses, a provider may request accounts, debtor ageing and evidence of supply through its own process. Our application preparation guide explains the records to organise.
Does an enquiry commit us to a facility?
No. An initial conversation is not an agreement to borrow and does not establish approval. Review the provider’s offer, charges, security and contract before deciding whether to proceed.
Ask about your own payment situation
Tell Positive Funding which customers are taking time to pay and what you need the cash to cover. We can discuss the practical questions relevant to your business.