Invoice Finance Solutions

Invoice finance is one of the most practical and often underused tools available to UK SMEs. It allows you to access the cash tied up in your unpaid invoices (typically 70 to 90 percent of the invoice value) without waiting for your customer to pay.

For businesses that sell on credit terms to other businesses, it can be transformative. It is also one of the products most commonly misunderstood or replaced with something less appropriate.

Confidential Invoice Discounting (CID) 

You retain full control of your credit control and customer relationships. Funding is released against your invoices without your customers knowing a third party is involved. Best suited to businesses with established internal credit control.

Factoring 

The lender takes on your credit control function, chasing payments on your behalf. This frees up time internally and is well suited to growing businesses that do not yet have the internal resource to manage collections.

Selective Invoice Finance 

You choose which invoices or debtors to finance, rather than your whole ledger. Useful for businesses that want flexibility rather than a whole-of-book commitment.

Asset-Based Lending (ABL) 

A more comprehensive facility that combines invoice finance with lending against other assets like stock, plant and machinery, or property. Appropriate for businesses with significant assets across multiple categories.

Invoice finance is particularly well suited to:

• B2B businesses with consistent invoice volumes and reliable customers
• Businesses growing faster than their cash flow can support
• Businesses that have taken on a significant new contract and need working capital to service it
• Businesses where debtor days are increasing and causing pressure

This is important, and it is something we see repeatedly.

A growing number of SMEs are replacing invoice finance with term loans or being advised to do so. On the surface, a loan can seem simpler. But a term loan is a fixed amount. As your business grows and your debtor book increases, the loan does not grow with it. Invoice finance does because it is directly linked to your sales.

If your business is growing and you are cash flow constrained because of debtor days, a fixed loan is usually the wrong answer. It solves a short-term problem without addressing the structural issue.

We regularly help businesses move from loan-based working capital solutions back into invoice finance that properly supports their growth. If you are in this position, it is worth a conversation before you renew or extend anything.

We work with a wide range of invoice finance providers from the major clearing banks through to specialist independent funders and we know which are best suited to which types of debtor book, sector, and business profile.

We will assess your ledger, your customer concentration, your sector, and your growth trajectory and recommend the most appropriate structure. We will also tell you clearly what each facility will cost in real terms, not just the headline rate.

All commissions are disclosed before you commit to anything.