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Also structuredBridge to let and refinance
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The income test replacing the GDV test, and the letting void before term debt engages.
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Run it › Invoice finance
A business that invoices on thirty or sixty day terms funds its customers' working capital out of its own. The faster it grows, the larger that gap becomes, which is why profitable businesses run out of cash. The money is not missing, it is sitting in the ledger.
Invoice finance advances against those unpaid invoices, commonly 80% to 90% of approved value, released within a day or two of raising them rather than on the customer's terms. The balance follows when the customer pays, less the charges.
The choice that matters is who collects. With factoring the lender runs the sales ledger and chases payment, which suits a business without a credit control function and is visible to customers. With invoice discounting you keep collecting and the facility is usually confidential, but the lender is relying on your systems, so it is offered to businesses with better records and a stronger balance sheet.
Whole ledger against selective
A whole ledger facility prices better and funds more. Selective or spot invoice finance funds only the invoices you choose, which costs more per pound and suits occasional need rather than a structural gap.
Concentration and debtor quality
A ledger where one customer is most of the turnover is a different risk, and most lenders cap the share any single debtor can represent. Knowing your concentration before you apply avoids a facility sized far below what the headline suggested.
The real cost, not the headline discount
There is a service fee on turnover and a discount margin on the money drawn, plus charges for credit protection and sometimes for each invoice. We show the all-in cost against what the facility actually releases.
Getting out, and what that takes
Notice periods, minimum terms and termination fees are where these facilities bite. It is worth reading the exit before signing the entry.
Which lenders play here
Bank owned invoice financiers and a large independent market, plus a newer group of platform lenders doing selective finance. Appetite is driven by sector, debtor quality and the state of your records rather than by any property you own.
80-90%
Typical advance on approved invoices
24-48h
Typical time to funds
Ledger
What the facility is sized on
None
Property security required
Indicative, and not an offer. What a lender will actually do depends on the business, its accounts and the lender's credit assessment.
What to have ready
Bring these and we can tell you where you stand.
Each one is something a lender will ask for. Having it early is the difference between a fast answer and a slow one.
✓An aged debtor report, and an aged creditor one
✓Turnover, and how much of it is on credit terms
✓Your largest customers and what share each represents
✓Filed accounts, plus current management figures
✓Any existing facility, its notice period and any termination fee
✓Whether you want it confidential, which narrows the options
Next
Related in this pillar.
Common questions
The questions this product raises.
How much can I raise against my invoices?
Commonly 80 to 90% of approved invoices, usually within a day or two of raising them rather than on the customer's payment terms. The balance follows when the customer pays, less the charges. If one customer makes up most of your turnover, expect less: most lenders cap the share any single customer can represent.
What is the difference between factoring and invoice discounting?
Who collects. With factoring the lender runs your sales ledger and chases payment, which suits a business without its own credit control and is visible to your customers. With invoice discounting you keep collecting and the facility is usually confidential. The lender then relies on your systems, so it is offered to businesses with better records and a stronger balance sheet.
What does invoice finance actually cost?
More than the headline discount. There is a service fee on turnover, a discount margin on the money you draw, and often charges for credit protection and for each invoice. Compare the all-in cost against what the facility actually releases, not the advertised rate.
What should I check before signing an invoice finance facility?
How you get out. Notice periods, minimum terms and termination fees are where these facilities bite, and they are hard to renegotiate once you are in. Read the exit terms before the entry terms.
Bring us the detail.
Send what you have. We will tell you what is fundable and what needs work before anyone approaches a lender.
Specialist property finance for developers who want the numbers to survive underwriting.
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Fundingwise Limited is not authorised or regulated by the Financial Conduct Authority, and arranges unregulated finance only. That means lending secured against commercial property, or against residential property that is not, and will not be, occupied by the borrower or an immediate family member as a main residence. We do not advise on or arrange regulated mortgage contracts or regulated bridging loans. Because this finance is unregulated, FCA conduct rules and access to the Financial Ombudsman Service do not apply. Fundingwise Limited is registered in England and Wales, company number 13750788.