Compare Invoice Finance Companies

Rates start at 1.5%

Your business’s outstanding debt serves as the collateral for invoice finance. If you use invoice finance, you can get most of the outstanding amount without waiting for payment. The loan uses the invoices as collateral.

Getting money to pay your bills can help your business’s cash flow. When you give unpaid bills a certain amount of time to pay, the money may not reach your bank account for weeks or months.

Choosing the best invoice finance company

We look at the rates that different invoice financing companies in the UK offer and find a good deal with rates that start at 1.5%.

Factoring and invoice discounting are two ways to get money to pay for invoices. All of them are designed to offer asset-based lending, which means you can get cash right away instead of waiting for your customers to pay.

• Bill factoring: The lender, not you, is in charge of getting paid by your clients when you use invoice factoring. Typically, you inform your customers about factoring and transfer their funds to a bank account under the lender’s control. The investor will have less risk with factoring because they will have more control over making sure your customers pay you on time. This means that lenders may be more willing to offer factoring to businesses that don’t make a lot of money, have a short business background, or are in some other tough situation. You could also add bad debt insurance, which would keep you from having to make up the difference if one of your clients doesn’t pay.
• Discounting invoices: This method allows you to swiftly recover funds from unpaid bills and enhances the value of your sales ledger. When you send an invoice to a client or customer, the lender pays you a portion of the total amount. This gives your business more cash flow right away. You can also view invoice discounting as a sequence of short-term loans for businesses that rely on bills. If the lender knows you’re due, they’ll give you the money before your client pays.