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Invoice Finance

Business hit by the pandemic?

Use unpaid invoices to receive immediate cash Invoice finance is a novel type of loan that helps businesses leverage their due invoices by lenders and provides quick monetary support for SMEs for their business expenditures.

Table of Contents

What is invoice finance?

Businesses can use invoice finance companies to leverage their unpaid invoices and release up to 90% of the invoice value to improve their cash flow.

You can release and use cash tied up in outstanding customer invoices with an invoice finance facility, so you don't have to wait for longer periods for payment.

This asset-backed lending option is appropriate for all types of businesses, large and small, that invoice other businesses for their goods or services on a regular basis (B2B). It provides a rapid, flexible, and easy method of managing cash flow and receiving prompt payment for finished services.

The lender will release the final amount after deducting fees and charges for the service after the consumer pays the invoice.

Businesses can choose from a variety of invoice financing alternatives, based on their situation and the level of control they want over their unpaid invoices. Invoice factoring, invoice discounting, selective invoice discounting, debt factoring, accounts receivable factoring, and spot factoring are the most common methods of invoice financing.

Invoice finance brokers provide an Invoice funding service in which payments are collected on your behalf and managed by our team of expert credit controllers, allowing you to focus on your business.

Invoice finance providers provide businesses with a way to keep their own credit control systems discreet so that their clients aren't aware of their involvement.

What finance options are available under RLS?

  • Increase your cash flow without having to wait for your clients to pay you for up to 120 days.
  • Release up to 90% of the invoice right away, with the remaining 10% released once the invoice is paid.
  • We can handle your invoices so you don’t have to.
  • After a six-month trial period, a rolling contract is offered.

How does Invoice Finance work?

Unpaid client invoices are used to represent money due to your company in invoice finance. Rather than waiting for clients to pay an invoice, the lender will buy your invoice(s) at a reduced price, allowing you to circumvent the typical payment conditions. You might get a cash advance of up to 90% of the invoice amount in as little as 24 hours.

Your invoicing process does not need to change with invoice funding, allowing you to continue doing business as usual.

1. Send the invoice details to the provider and invoice customers as usual for finished work.

2. The first installment i.e up to 90% of the invoice value, is immediately paid to you.

3. Credit control and chasing payments can be handled by you or the provider, depending on the type of invoice finance you choose.

4. Upon receipt of the customer’s payment, the final installment is paid to you, minus any fees and service costs. 

Who can apply for the loan?

Following are the key requirements to avail Invoice Finance in the UK:

  • UK trading business with a UK-based bank account.
  • Turnover of at least £10,0000/year.
  • LLPs (limited companies, limited liability partnerships) or registered sole UK-based traders.
  • More than 4 months of active operations on paper.

Businesses of any size, whether small or large, can apply and avail loan benefits if and only if they meet the above criteria.

Interested in other finance loan options?

Glance over at some of our other finance tools that may benefit you more.

  • Business Cash Advance
  • Property FInance
  • Recovery Loan Scheme
  • Revolving Credit Facility
    … and more.

Frequently Asked Questions

Selective invoice finance, invoice factoring and invoice discounting are some of the main types of invoice finance available to businesses.
Businesses involved in recruitment, design, marketing, manufacturing, engineering, construction firms, etc. are the common business types who frequently use Invoice Finance.
We collaborate with a select group of reputable invoice finance companies. We have handled SME invoice finance for innumerable small firms across the UK over the last few years. We have a staff of competent finance professionals and have experience arranging invoice finance solutions for SMEs.
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