Compare Invoice Financing
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Touch Financial Invoice Financing
- Compare your current invoice finance facility with a panel of over 30 of the UK's leading lenders
- Trial periods and rolling contracts available
- Must be trading business to business
From £3,000 (no maximum)
- Touch Financial are the largest Invoice Finance Broker in the UK
- Established in 2008
- They help hundreds of businesses explore their commercial finance options every month
- Your turnover must exceed £50,000 annually
- For Invoice Finance, you must be trading B2B on credit terms
THINK Business Loans Invoice Financing
- Check eligibility (without a credit check) & compare all Invoice Finance facilities in one place
- Same day funding and spot factoring options
- No service fee options available
£50,000 to £10,000,000
- THINK's iFunds matching platform matches your businesses eligibility against hundreds of lenders instantly (without a credit check)
- THINK are the UK's leading SME lending specialists; their experts are on hand to guide you through the process
- Find the perfect loan in minutes - Make the lender work for you
- Must have at least 6 months trading history
- Sole Traders accepted
- Must sell to UK businesses
Funding Circle Invoice Financing
- Get working capital to take your business forward with a fast, affordable business loan
- Apply in 10 mins, get a decision typically in 24 hours
- Rates from 1.9% - no fees for full early repayment
£10,000 to £1,000,000
6 months to 5 years
- Simple online form and a dedicated account manager
- Get a decision in as little as 5 hours
- Rates from 1.9% per year - no fees for full early repayment
- At least two years filed accounts with Companies House or formally prepared accounts for non-limited businesses.
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Invoice Financing FAQ
Invoice financing can be a quick and effective way for businesses to access capital based on the amounts they are owed by their customers. Before you apply for any invoice financing you should make sure you understand how it works and whether it is suited to your particular circumstances. Below we have compiled some handy, concise answers to the most frequently asked questions about invoice financing - just click on a question heading to get started.
What is invoice financing?
Invoice financing can be a quick and effective way for businesses to access capital based on the amounts they are owed by their customers. In simple terms, it enables businesses to improve their existing cash flow, pay suppliers and employees, and reinvest in growth opportunities that would otherwise be impossible to access while waiting for customer payments.
Invoice financing works by requesting that businesses pay a percentage of the invoice amount owed to their lender as a fee for borrowing the money ahead of schedule. Though, like any loan agreement, it should be carefully evaluated by any potential borrower, invoice financing can sometimes solve the common problem of late payments and the cash flow problems that follow.
Why is invoice financing termed as 'secured' lending?
Invoice financing, unlike lines of credit which are unsecured forms of lending, is secured because the invoices act as collateral. Additionally, the lender reduces its risk by not giving 100% of the invoice amount owed to the borrowing business. Of course, invoice financing has some risk for lenders as the customer may never pay the invoice, which leads to expensive debt collection processes. This risk means that you will often need good credit to be considered for invoice financing.
Is my business well-suited to invoice financing?
The businesses that are best-suited to invoice financing will often:
- Have owners that manage the full operations of the company (be they sole traders, partnerships, or limited companies)
- Provide a product or service that requires the use of invoicing
- Have the ability to provide evidence that services or goods have been delivered in full
Which businesses aren't suitable for invoice financing?
Businesses that are less suited to invoice financing might include:
- Those which require invoices to be settled using staged payments
- Those which offer return contracts as standard
- Those with long-term warranties
- Those in which invoices are issued in advance
How much money can I get from invoice financing?
Because invoice financing is all about accessing the money that is owed ahead of schedule, the amount that you can access will depend on the amount of cash your company has tied up in unpaid invoices. Though some lenders will have a limit on the amount that they are willing to lend, the cash that you can borrow can range from several thousand to a few million.
What is recourse and non-recourse invoice financing?
Non-recourse and recourse invoice financing, or "factoring", are terms for describing the type of finance you can get. In recourse factoring, if a buyer fails to pay their invoice, you will be required to pay back the amount that you obtained from the lending company. Alternatively, in non-recourse factoring, the lender provides finance and will be willing to bear the financial burden themselves if the invoice owed does not get paid.
Are there any additional fees required?
In many cases, you will be required to pay a service fee for your invoice financing agreement. Additionally, some companies will ask you to pay a discounting charge which is similar to an interest charge. The discounting charge will be based on the amount of money that you withdraw. It can be helpful to check the additional costs that may be expected from your lender before you sign any contracts or payment schedules.
Can I still access invoice financing as a new business?
Depending on the company that you choose to obtain your finance from, you may still be able to access invoice financing as a new company. However, the decision will sit with the lender and will be based on your personal circumstances.
Will my customers know that I am using invoice financing?
Some companies worry that evidence of invoice financing will create bad relationships with their existing customers. Most financing groups will need to inform your customer of the transaction that is taking place, as the customer will be required to confirm their receipt of the notification, and acknowledge that they have no disputes with the invoice they have yet to pay.