Invoice Finance Explained: Turning Unpaid Invoices into Cash
Discover how invoice finance can unlock up to 90% of your unpaid invoice value within 24 hours, transforming your cashflow without taking on traditional debt.
Invoice finance is a powerful funding solution that allows businesses to release cash tied up in unpaid invoices. For B2B businesses with outstanding invoices, it can be a game-changer.
How Invoice Finance Works
You raise an invoice as normal, but instead of waiting 30, 60, or 90 days for payment, the invoice finance provider advances up to 90% of the invoice value within 24 hours. The remaining balance (minus fees) is paid when your customer settles the invoice.
Types of Invoice Finance
Invoice Factoring
The provider manages your sales ledger and collects payment from your customers. This is a fully disclosed service.
Invoice Discounting
You maintain control of your sales ledger and collect payments yourself. The facility is confidential — your customers do not know you are using invoice finance.
Selective Invoice Finance
You choose which invoices to finance, giving you flexibility to use the facility only when needed.
Benefits
- Immediate cashflow improvement
- No need for property security
- Scales with your business growth
- Improves supplier relationships
- Can include bad debt protection
Could this apply to your business?
Speak to a specialist about your own circumstances — free, no obligation.
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This article is published for general information only and does not constitute financial, tax, accounting or legal advice, or a recommendation to apply for any product. Any rates, LTV ranges, fees, timelines, tax rules or government schemes mentioned are indicative and reflect general market norms at the time of writing; they may change and should be confirmed with a specialist before acting. Read our editorial policy to see how we produce and review our content.