Invoice Factoring
Understanding how you can turn unpaid invoices into cash
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Pages in this SectionWhat is invoice factoring?
Invoice factoring is an invoice finance product which allows businesses to unlock value tied up in unpaid invoices, immediately releasing most of the invoice value as cash rather than having to wait weeks or even months to get paid.
With Novuna you can release up to 90% of the value of your invoices within as little as 24 hours.
Invoice factoring companies in the UK also offer an invoice funding solution, whereby they collect payments on your behalf managed by a team of expert credit controllers.
There is a service fee with any invoice factoring company but this is only deducted once the full payment has been collected from the customer.
Try our invoice factoring calculator below to find out what the costs will be based on a combination of your company's turnover, the amount you'd like to release from each invoice and the average time it takes for your customers to pay you.
What are the advantages of using invoice factoring companies?
We are an award winning invoice factoring company
Highly recommended by our 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."
Read full reviewIs invoice factoring right for my business?
Generally speaking, invoice factoring facilities are best suited to companies that sell to other businesses on credit terms, and turnover more than £50,000 a year
What are the main benefits of using invoice factoring companies?
Invoice factoring facilities allow medium-sized businesses to borrow money against the value of their unpaid invoices. The finance provider handles the credit control, meaning you don’t have to worry about investing in time and resources into chasing invoices.
How it works:
Supply the goods
Supply your customers with goods or services and invoice your customers as normal.
We handle the credit control
Your finance provider will release between 70% to 90% of the raised invoice value.
Your customers will pay the finance company directly and chase payment of the invoices on your behalf.
You receive the money
Once the customer settles the invoice, the finance company will release the remaining invoice amount to you minus the relevant fees.
Get in touch
Contact our friendly UK advisors on our freephone
0808 258 2297
8:45 - 17:15 - Monday to Thursday &
8:45 - 16:45 - Friday
Choosing the right factoring product for your business
The needs of SMEs tend to vary according to growth stage and industry. To help you work out which type of factoring financing will suit your business, here is a brief guide to our five options:
What are the advantages and disadvantages of invoice factoring?
Advantages of invoice factoring:
- Benefit from improved cash flow
- Enjoy better working capital, which means more money for growth projects, staff training or stock purchases
- Be able to move away from more restrictive forms of finance, like small business loans or overdrafts
- Benefit from your chosen finance provider’s in-house credit control processes
- Be able to focus on running your business, instead of chasing clients for payment
Disadvantages of invoice factoring:
There are some disadvantages of invoice factoring too - your clients will be informed that you’re using an invoice factoring service, and your factor will contact them to collect on factored invoices which means that:
- The image of your company may be affected, particularly if your clients assume that you are not established enough to oversee your own credit control
- You won’t be able to maintain your standard approach to client communication
- You may find that some of your clients prefer working with you directly and dislike the fact that they have to interact with your finance provider.
It is also important to remember that most invoice factoring agreements are recourse arrangements, which means that you will be responsible for any unrecoverable invoices.
Invoice factoring in the UK has been revolutionised with our digital onboarding process

Get in touch
Contact our friendly UK advisors on our freephone
0808 258 2297
8:45 - 17:15 - Monday to Thursday &
8:45 - 16:45 - Friday
Invoice Factoring FAQs
Why choose Novuna Business Cash Flow as your invoice factoring company?
6 month trial period
A 6 month trial period so you can be sure the product is right for you, followed by a 6 month rolling contract – we don’t tie our clients in for long periods.
Digital onboarding
We are the first in the market to offer a digital onboarding process and have been leading the way with our digital capabilities allowing clients to sign up within 24 hours from the first appointment.
Client Trust Account
Once you become a client you will be given your own trust account, meaning you will get same day availability on your funds. You can also view all of your invoices and payments online at a time suitable to you, 24/7.
No uncleared effects
We have heavily invested in our digital capabilities. This includes the auto allocation of payments using Artificial Intelligence. Ultimately this advance in technology means that our clients access money quicker as well as saving money on interest charges due to auto allocation.
Simple pricing
We aim to make the process of Cash Flow finance as simple and straightforward as possible. Our pricing is very straightforward to understand. For a no obligation quote or an informal chat you can call our friendly team today on 0808 250 0859.
Award winning support
We offer award-winning client services and individual Relationship Managers who are on the other end of the phone or out in the field to visit you in person.
Get in touch
Contact our friendly UK advisors on our freephone
0808 258 2297
8:45 - 17:15 - Monday to Thursday &
8:45 - 16:45 - Friday


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Want to learn more about how you can boost your businesses cash flow?
Our Cash Flow Resource Hub has been set up to help SME's with cash flow finance advice, tips and resources to help with their cash flow position.
We explore ways you can begin improving your cash flow situation and start getting your business on track to positive cash flow.