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Answer a few questions for us to understand your business' needs
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We will advise which options could be suitable for your business
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We'll present any offers available for your business. You choose the one that best suits your business.
Invoice factoring is a type of invoice finance where a lender purchases your invoices at a discount and takes responsibility for collecting payments directly from your customers.
Standard factoring involves the lender managing collections, while recourse factoring means the business is liable if customers don’t pay. Non-recourse factoring transfers credit risk to the lender.
Provide goods or services to your customer and issue an invoice as usual.
Share the invoice details with your chosen invoice finance provider.
The provider will advance you a percentage of the invoice value, usually between 70% and 90%.
Your customer then pays the invoice either directly to the finance provider or to you, depending on the type of facility.
Once payment is received, the finance provider releases the remaining balance to you, minus their agreed fees or charges.
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It provides fast access to working capital while outsourcing credit control, saving time and resources. It also reduces the risk of bad debt if non-recourse arrangements are used.
Best for SMEs without large finance teams, or businesses dealing with high volumes of invoices, such as transport firms or wholesalers.
Your customers will be aware of the factoring arrangement. Some firms prefer confidentiality, so factoring may not suit all industries.
Typically 80–90%.
The lender handles collections, so communication may shift but control over customer wouldn't be lost.
It carries service fees but can be cheaper than overdrafts.
Yes, or choose specific ones depending on your agreement.
In recourse factoring, you cover the debt; in non-recourse, the lender absorbs it.
