Invoice Finance Information

What is invoice finance?

Invoice finance is the practise of borrowing money to offset the amount of unpaid invoices owed to your company by clients. This finance option, for which we have over 20 lenders on panel, helps businesses maintain cash flow by ensuring that suppliers and staff are paid on schedule and that daily business operations operate smoothly.

Unpaid invoices represent money owing to your company; invoice financing helps to cover this interim period, ensuring that your company is not out of pocket while payment conditions expire. An invoice finance facility allows you to release cash held in unpaid client invoices, allowing you to avoid waiting weeks or months for payment.

This asset-backed lending option is appropriate for all types of firms, large and small, that invoice other businesses for their goods or services on a regular basis (B2B). It provides a rapid, flexible, and easy method of managing cash flow and receiving prompt payment for finished services.

Invoice finance calculator

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Typical reasons for a cash flow loan

Commercial cash flow funding typically assists in providing working capital to maintain the viability of your everyday operations. There are many ways a cash flow loan can assist your business, whether that’s to pay rent, wages, taking on a new client, recruitment – any business rationale.

Often companies have to consider the seasonal peaks and troughs and plan ahead. It is vital to keep a constant flow of cash year-round.

You can get cash flow funding for a variety of reasons:

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What does it cost?

Invoice financing fees and charges typically range from 1% to 5% of the invoice value. This can vary depending on the number and value of invoices processed each month.
If the invoices are of high value and small volume numbers, then you are likely to achieve a more competitive rate than if you do a lot of small value invoices.

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What factors are involved?

  • Industry of business
  • Credit score
  • Invoice value
  • Type of facility you choose

Advantages of invoice finance

At Smart Funding Solutions, we work with a full panel of invoice finance providers. With options can come confusion – which is where we come in. We arrange invoice finance on your behalf and strive to provide fair and competitive rates that will help your business grow.

We know that unpaid invoices are a major threat to business survival, with late payments being blamed for 1 in 5 UK company insolvencies. As a result, we are on a mission to assist businesses in confronting this issue head on.

Apply for invoice funding

Request a call back

How does it work?

Fill in our form​

A member of the team will be in touch to collect some basic information. This helps us understand the type of funding that would best suit your business.

We find the best funding for you

We use the information you provided to source the best funding options for you and your business using our panel of over 250 lenders.

We present your options

We’ll then present you will all of the funding options available to you and give you time to decide which one you would like to proceed with.

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