Factoring for marketing agencies

• Cash flow challenge: Marketing agencies often experience cash flow pressure when client payment terms don’t align with campaign delivery costs or freelancer payments.

• Perfect for: Marketing, media, and creative agencies that bill on retainers or project work and need consistent cash flow while waiting for client invoices to be paid.

Novuna helps marketing agencies release cash from unpaid invoices through factoring, either through our award-winning in-house service or by comparing trusted UK providers to secure the a great fit for your agency.

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How factoring works for marketing agencies

Invoice factoring allows your agency to access funds tied up in unpaid client invoices, helping you manage cash flow without waiting 30–90 days for payment.

Here’s how it works:

1. You invoice your client for completed campaign work or retainer services.
   
   
2. Novuna advances up to 90% of the invoice value, often within 24–48 hours.
   
   
3. We manage payment collection directly with your client.
   
   
4. Once the invoice is paid, you receive the remaining balance, minus an agreed fee.
   

This structure ensures you have reliable working capital to cover salaries, freelancers, and media spend while projects are delivered.

Why marketing agencies use factoring

Many agencies deliver work upfront but are paid later, particularly when working with large brands, corporates, or public sector clients.

Factoring is commonly used by agencies to:

• Pay freelancers and contractors on time.
• Fund media buying or campaign costs before clients pay.
• Manage cash flow across multiple concurrent campaigns.
• Reduce time spent chasing late payments.
• Maintain stability during slower billing periods.

Benefits of factoring for marketing agencies

• Improved cash flow: Access funds as soon as invoices are issued.
• Outsourced credit control: Reduce admin time spent chasing payments.
• Support retainer-based billing: Smooth income across monthly billing cycles.
• Flexible funding: Finance grows in line with your invoicing volume.
• Faster growth: Take on larger clients or more campaigns with confidence.
• Less reliance on overdrafts: Funding is linked directly to your sales.

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Factoring or invoice finance – what’s the difference?

Both factoring and invoice finance help agencies unlock cash from unpaid invoices, but the level of involvement differs.

With factoring, Novuna manages credit control and collections on your behalf, ideal for agencies that want to remove the admin burden of chasing payments.

With invoice finance, you retain control of client relationships and collections, while still accessing funds against invoices. This can suit established agencies with in-house finance teams.

If confidentiality or client control is important, invoice finance may be preferable. If time-saving and support are priorities, factoring is often the better fit.

How factoring supports agency cash flow in practice

• Operate on retainers with delayed payment terms.
• Run campaign-led billing with upfront delivery costs.
• Rely on freelancers, designers, or media buyers.
• Work with large organisations that pay on long terms.
• Want to scale without introducing fixed monthly repayments.

Funding options agencies often combine with factoring

• Business loans – to fund long-term growth, office expansion, or acquisitions
• Working capital loans – to cover short-term operational costs.
• Alternative overdraft facilities – for additional flexibility during quieter months.
• Invoice finance – for confidential access to funds while keeping client control.

How Novuna Business Cash Flow can help

At Novuna, we understand how agencies operate, from retainer billing to campaign delivery and freelancer management.

Get in touch with our experts today and we can help you find a great solution for your agency needs.