Invoice finance includes a range of different products. Some of these differ from lender
to lender, but broadly speaking there are three main product areas.

  1. products_1Invoice discounting
    is a simple cashflow product that allows you to receive up to 85% of the money you’re owed within 24 hours of submitting an invoice. Your lender will advance this money against the invoice without your customer being involved, and you remain in control of invoicing your customers and collecting payment.
  2. products_2Invoice factoring
    also provides the facility for you receive up to 85% of the money you are owed in advance of your customer paying their bill. However, with factoring, you have the additional benefit of outsourcing credit control to experts who will collect payment on your behalf from your customers.
  3. products_3Asset based lending
    may be offered in conjunction with other invoice finance products. It allows you to borrow against physical assets such as your inventory, equipment or even property. It is designed to provide businesses with fast, cost-effective and easy access to funds.

Bad debt protection can often be added to Invoice Finance lending and collecting products to provide you with protection in the event of a customer insolvency or a long delay in payment.

Product Quick Guide

Key Features Invoice Discounting Factoring Asset Based Lending
Releases funds from unpaid debtors YES YES YES
Releases funds from tangible assets NO NO YES
Funding grows as you grow YES YES YES
Credit control service NO YES OPTIONAL
Protection from bad debts OPTIONAL OPTIONAL OPTIONAL
Funding Exports YES YES YES