What is an invoice and how does invoicing work?

Everything you need to know about invoicing for your business

Invoicing explained

An invoice is a dated document recording a transaction between a seller and a buyer. Types of invoices may include a paper receipt, a bill of sale, debit note, sales invoice, or online electronic record. In the event where goods or services are purchased on credit, the invoice should specify the terms of the deal and provide information on the available method of payment.

​You are required by law to give your customer an invoice (or bill) if both you and the customer are VAT registered (i.e. for a business to business transaction) and you sell a customer a product or a service. Invoicing is essential for small businesses. They are the business documents that enable companies to be paid for their services. A popular way to get started with invoices are to use invoice templates.

What is an invoice and how does invoicing work? Back

What are invoice payment terms? Back

What are the difference types of invoices? Back

How do I deal with late invoice payments? Back

What is a pro forma invoice? Back

What is a purchase order? Back

What is e-invoicing and how does it work? Back

Businesses in the UK have been revolutionised with our digital onboarding process

Boost your cashflow infographic

Get in touch

Contact our friendly UK advisors on our freephone

0808 250 0859

8:45 - 17:15 - Monday to Thursday &
8:45 - 16:45 - Friday

Are you struggling to get your invoices paid on time? Have you thought about Invoice Finance as a cash flow solution for your business?

Invoice finance allows you to release cash quickly from your unpaid invoices.

As your lender, we can release up to 90% of your invoices within 24 hours. On payment of the invoice from your customers, we will then release the final amount minus any fees and charges. There are different types of invoice financing options available to businesses depending on the situation and the level of control they require in collecting unpaid invoices.

Invoice financing options from Novuna Business Cash Flow:

Payroll Finance

  • Payroll or Recruitment finance provides recruitment agencies with a full back office administration system and invoice finance facility to aid cash flow for one simple fee
  • A complete recruitment factoring solution

What our customers say

Let's talk

Please complete this form and one of our friendly advisors will call you back.

Approximately how many invoices do you raise each month?
How old is your business?
Back to top