Home → Funding options → Invoice factoring
— FUNDING OPTION
Invoice factoring: funding with
credit control handled for you
Release funding against eligible unpaid invoices while the finance provider manages your sales ledger and collects customer payments. Explore whether factoring could give your team more time to focus on sales and delivery.
With factoring, the provider collects payment
The finance provider manages the sales ledger and collections under the agreed terms.
What it is
Funding against eligible unpaid invoices, with credit control included in the arrangement.
Who collects payment
The finance provider collects on your behalf under the terms you agree.
How funding flows
An agreed percentage of an eligible invoice can be released once the provider has approved it.
— HOW IT WORKS FOR YOU
From raising an invoice
to accessing funding
The provider’s credit control team becomes part of the process. Invoice verification and the release of funding follow the facility’s agreed terms.
01 You raise the invoice as normal
You supply your goods or services and raise an invoice. Eligible invoices are submitted to the provider for review.
02 The provider takes on the ledger
The provider records your invoices, verifies them where required and manages collections when payment is due.
03 Funding follows the invoice
The agreed advance is released. After the customer pays, the remaining balance follows, less agreed charges.
Who it may suit
- You invoice other businesses on agreed payment terms
- Credit control is a strain, or invoices are chased late
- You would rather your team focused on sales and delivery
- Your customers are comfortable paying a finance provider
- You want funding and collections visible in one place
When it may not fit
• You sell mainly to the public and take payment at the point of sale
• Your customers insist on dealing only with your team
• Your ledger is very small or depends on one or two large customers
• Your customers insist on dealing only with your team
• Your ledger is very small or depends on one or two large customers
— WHAT YOU GET
Practical benefits of invoice factoring
Credit control handled for you
Collections, chasing and reconciliation sit with the provider, freeing your team to sell and deliver.
Funding against eligible invoices
Access some of the value in invoices you have already raised, subject to the agreed advance and eligibility.
A clearer view of the ledger
See which invoices are outstanding, which have been paid and where the funding position stands.
Support for regular outgoings
Available funding can help bridge the gap between paying suppliers or wages and receiving customer payments.
Support with verification
Invoice checks can help identify queries and disputes earlier.
Room to take on more work
Funding availability may increase with eligible invoicing, within the facility’s agreed limits.
— COSTS
What a facility of this kind usually costs
Costs vary between providers and businesses. Ask for an illustration showing all charges and the contractual commitments.
- A service charge for operating the facility, often linked to turnover
- A discount or finance charge on funding used
- Possible charges for additional services, such as credit protection
- Minimum fees, arrangement fees and any early-exit charges
We explain charges before you commit, so you can compare facilities fairly.
Funding is subject to eligibility, assessment and provider terms. Fees apply. Nothing is agreed until you have reviewed the terms.
— THE PROCESS
A clear path from enquiry to funding
STEP 01
Tell us about your business
Tell us who you invoice and how customers pay. There is nothing to prepare for the first conversation.
STEP 02
Compare your options
Understand the available options, their costs and how collections would work for your business.
STEP 03
Review the terms
The provider assesses your business. Review all charges and conditions before deciding to proceed.
STEP 04
Access your funding
Once approved and set up, draw funding against eligible invoices under your agreed facility terms.
— YOUR QUESTIONS, ANSWERED
Invoice factoring FAQs
Usually, yes. With factoring, customers are generally told about the provider and the payment arrangements.
You keep your commercial relationships. Agree how the provider will communicate with customers and handle queries before proceeding.
The provider follows the agreed collections process. Late payment can affect available funding and charges. Your responsibility for unpaid invoices depends on the agreement.
Some facilities cover a whole ledger; others may allow selected invoices or customers. Availability depends on the provider and your business.
Funding is linked to eligible invoices and customer payments rather than a fixed loan balance. Costs, security and repayment obligations depend on the facility.
Let’s talk about your invoices
Tell us a little about your business. We’ll help you understand whether factoring could fit.
- Plain-English explanations
- Options shaped around your business
- No obligation to proceed
— WHERE IT IS USED
Invoice factoring for your sector
Each sector gets paid differently. Explore the cash-flow pressures in yours.
Bridge the gap between paying your staff and receiving client payments.
Manage materials and production costs while customers work through their payment terms.
Support day-to-day operating costs while waiting for business customers to pay.
NEXT STEP
Let’s find a practical way
forward for your cash flow.
Tell us about your business and the invoices you raise. We will explain the options that may be available, in plain English and without obligation.