Factoring
A provider may advance funds against invoices and handle credit control or collections, depending on the agreement.
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Moneykind business finance guide
Waiting for customers to pay invoices?
Invoice finance can release cash against qualifying unpaid business invoices. It may help cash flow for businesses selling on credit terms, but costs and customer arrangements vary.
Explore your finance options →What to know about receivables finance
Invoice discounting
The business may retain control of collections while borrowing against eligible receivables, subject to provider conditions.
Eligibility and concentration
Providers may assess debtor quality, invoice disputes, customer concentration, payment history and the nature of the goods or services.
Fees and funding limits
Check service charges, discount fees, minimum charges, reserves, recourse provisions and contract length.
Risks and obligations
Disputed or unpaid invoices can reduce available funding. Some agreements require the business to repay advances on bad debts.
Before you apply: Finance availability, pricing and terms depend on your circumstances and the provider. Consider independent legal, tax or regulated financial advice where appropriate. Moneykind introduces enquirers to third-party professionals; it does not itself make lending decisions.
How to prepare for an enquiry
Explain what you need
Set out the purpose of the funding, the amount sought, your timescale and how the borrowing will be repaid.
Gather the key information
Depending on the facility, a professional may ask for accounts, bank statements, forecasts, property or asset details and existing borrowing information.
Compare the full commitment
Ask about the total cost, fees, security, guarantees, repayment schedule, early exit terms and what happens if circumstances change.
Understand the introduction
Moneykind helps connect you with a relevant third-party professional. The professional will explain their services, charges and any applicable regulatory status.
Frequently asked questions
Does invoice finance suit businesses that sell to consumers?
It is generally more common where businesses invoice other businesses on credit terms. Provider eligibility varies.
Will customers know I use invoice finance?
Some facilities are disclosed to customers and others may be confidential, subject to lender requirements.
What is recourse invoice finance?
Under recourse arrangements the business generally remains responsible if a customer does not pay, subject to the contract.
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