{{article_summary}}
Debt factoring
-
Cash flow challenge: I want to get paid faster and reduce debtor management pressure.
-
Perfect for: UK businesses with B2B clients looking to unlock cash tied up in unpaid invoices - while outsourcing payment collection.
Novuna helps you compare trusted debt factoring providers, apply with expert support, and improve cash flow without taking on extra debt.
We compare providers, help you apply, and make sure you get the right deal for your needs.
Related debt financing options
Pages in this SectionWhat is debt factoring?
Debt factoring is a form of invoice finance that helps businesses improve cash flow by selling their unpaid invoices to a third-party finance provider, known as a factor.
The factor pays a percentage of the invoice value upfront (typically 80-90%), collects payment directly from your customer, and then pays you the balance (minus fees) once the invoice is settled.
Unlike invoice discounting, debt factoring typically includes credit control support - helping you chase and manage payments professionally, while freeing up your time and internal resource.
How it works with Novuna Business Cash Flow
-
Tell us your funding challenge - complete a short form or call
-
We compare providers and recommend a great fit for your situation
-
You apply - with full support from a cash flow expert
-
Get funded - often within 24-72 hours
Fast decisions. Flexible options. Funding over £2bn to more than 1,000 SMEs every year.
Is debt factoring right for you?
You invoice other businesses (B2B) and have cash tied up in unpaid invoices
This is the primary reason businesses use invoice factoring by unlocking working capital tied up in unpaid invoices.
You want to unlock working capital to grow, invest, or cover day-to-day costs
Since you manage collections, solid internal processes are essential to make invoice discounting work effectively.
You prefer not to take on additional debt or dilute ownership
Invoice discounting is typically confidential, meaning customers aren't aware you're using external financing.
If that sounds like your business, we’ll help you compare lenders and get funded fast.
Novuna can support businesses with a range of late payment challenges
What is your funding challenge?
I want to release cash from unpaid invoices
I want to stay in control of collections
I need help chasing overdue payments
I want to recover bad debts or aged receivables
How we help
How Novuna helps businesses access funding fast
Tell us what you need
Start with a simple form or call - tell us your business challenge.
We compare your options
We compare multiple providers to get you a great deal.
Choose the right type of funding
Access a range of short-term funding options including loans, advances, and invoice finance.
Apply with expert support
Get help applying - with a real expert on hand throughout.
Get clear, transparent terms
No jargon, no surprises - just honest advice with no hidden fees.
Receive funding fast
Get access to finance quickly so you can focus on your business.
Why take action now
Don’t let late payments stall your growth
Debt factoring can reduce debtor days and boost cash flow
Outsourcing collections can improve relationships and reduce admin
We help you avoid poor-fit lenders and hidden fees by comparing the market for you
Why choose Novuna Business Cash Flow?
Why businesses trust us for debt factoring
We're highly rated by our existing customers
"The communication and support has been outstanding. Providing me with all the information I needed regarding new clients coming onto our books. The system they use is so user friendly and the drawdown payments are very efficient in the fast moving world of temporary payroll.'
More reviewsWe're a multi-award winning business cash flow specialist
Innovation in the SME Sector 2024
Alternative SME Lender of the Year
SME Lender of the Year 2023
Best Use of Technology 2023
Best Provider 2023
What funding looks like in your sector
Get advice tailored to the challenges in your industry
Who is debt factoring suitable for?
Debt factoring suits UK businesses that invoice other businesses (B2B) and face long or unpredictable payment cycles. It’s commonly used by manufacturers, wholesalers, logistics providers, and recruitment agencies. It’s also valuable for small and medium-sized enterprises that might struggle to qualify for traditional loans
What are the key advantages of using debt factoring?
The biggest advantage is speed where businesses can access cash within days of raising invoices instead of waiting for customers to pay. It also improves cash flow stability, allowing firms to pay suppliers and staff on time and invest in growth opportunities
How does debt factoring differ from invoice discounting?
In short, debt factoring offers convenience and outsourced credit control, while invoice discounting offers privacy and internal control where the right choice depends on your business structure and customer relationships.
How quickly can I access funds?
In many cases, you can get a decision within 24 hours and access funds shortly after approval - depending on the type of finance and your application details. We work with a range of providers to fast-track funding wherever possible.
