What is an invoice finance company?

An invoice finance company will typically advance up to 90% of the invoice's value and once the customer settles the payment, the company will release the remaining amount, minus any service fees.

Invoice finance companies offer a specialised financial service whereby businesses can access immediate funds tied up in their outstanding invoices. Instead of waiting for clients or customers to settle their bills, a company can sell its unpaid invoices to an invoice finance company for a fee.

This provides the business with immediate cash flow, which can be instrumental in managing day-to-day operations, payroll, and other expenses. The invoice finance company then takes on the responsibility of collecting payment from the debtor.

What is the difference between invoice financing and invoice factoring? What is the process from initial enquiry to funds in my bank account? How long will the process take? Do you fund new start businesses? Do you fund phoenix companies? How much money can I borrow? What if I don’t want my customers to know that I’m using invoice finance? Will you tie me in to a lengthy contract? Can I access details of my account in real time? Can I trust you to handle my credit control in a professional manner? Can I use more than one provider simultaneously? Will there be someone managing my account? I provide goods and services to consumers, will you fund these invoices? Will I face any issues in receiving the level of funding I need? What charges can I expect with invoice finance? Who should consider Invoice Finance brokers? Is invoice financing a good idea? Is Invoice finance in the UK suitable for small businesses? How does invoice financing actually work? Are invoice finance brokers regulated in the UK? What is invoice financing in the UK? How much will it cost? I export goods and services, will you provide invoice finance on these invoices? I'm already using a factoring provider but I’m unhappy and want to switch, can you do this for me? Why should I choose Novuna Business Cash Flow? Why should I use an invoice finance provider instead of my bank overdraft?