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.

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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:



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