When a company issues an invoice, it often takes 30–120 days—or sometimes longer—to receive payment. Delays like this can restrict cash flow, hinder growth, and limit a business’s potential. Effective financial management is essential for any business aiming to expand, and an invoice finance facility can provide a solution.

What is Invoice Finance?
Invoice Finance is a range of funding solutions designed for SMEs to maintain cash flow and working capital. The primary benefit is immediate access to funds once an invoice is raised—often within 24 hours—removing the need to wait for lengthy payment terms.

Factoring
Factoring releases a pre-agreed percentage of unpaid invoices as soon as they are raised, sometimes up to 100%, depending on factors such as your sector, revenue, and business profile. Fees include a service fee and a discount fee, similar to interest on a loan. Factoring is usually disclosed, meaning debtors are aware of the provider’s involvement. This allows businesses to inject cash quickly, especially if significant funds are tied up in outstanding invoices, improving cash flow and operational efficiency.

Confidential Invoice Discounting (CID)
CID is ideal for businesses that prefer to keep lenders’ involvement hidden from customers. With CID, you retain control of your sales ledger and customer communications while still accessing prepayment on invoices. This facility functions similarly to factoring but keeps your financial arrangements confidential and is typically suitable for larger, more established companies.

CHOCCS (Client Handles Own Credit Control Systems)
CHOCCS is a hybrid solution where businesses remain in charge of chasing invoice payments while benefiting from financing. Customers may know a lender is involved, but the business handles all credit control communication, helping maintain strong client relationships. CHOCCS is available for established businesses with the capacity to manage collections in-house.

Spot Factoring
Spot Factoring allows businesses to select specific invoices for advance funding rather than financing their entire turnover. This is particularly useful for invoices with longer payment terms that impact cash flow. While the per-invoice cost may be higher than traditional invoice finance, careful calculation ensures cost-effectiveness while maintaining working capital.

Summary
Invoice finance solutions—including factoring, CID, CHOCCS, and spot factoring—provide businesses with flexibility, faster access to cash, and the ability to manage working capital efficiently. These tools help maintain smooth operations, strengthen client relationships, and support sustainable growth

DescIf you operate in wholesale, distribution, or the import and export of goods, a trade finance facility can support your business by funding the purchase of stock needed to fulfil orders. Similar to invoice finance, it enables you to continue trading without waiting for extended customer payment terms.

Trade finance helps reduce cash flow gaps within your trade cycle. Long payment terms can limit sales and slow income, whereas trade finance allows businesses to place larger stock orders, often benefiting from bulk discounts. This supports higher sales, improved cash flow, and a more efficient supply chain by shortening the time between payments.

Unlike many traditional lending products, trade finance is well suited to import and export businesses, which are often viewed as higher risk by high-street banks. Through our consultancy service, we source tailored trade finance solutions for both international and UK-based trading businesses. These facilities can also operate alongside existing funding solutions, such as business loans or invoice finance.

Purchase Order Finance allows a lender to advance an agreed percentage (typically 30–70%) of the total order value, enabling you to pay suppliers upfront and fulfil customer orders.

For businesses operating online, E-Commerce Finance offers similar support, advancing funds to purchase stock, which is repaid once goods are sold, plus an agreed interest fee.

There are regulatory considerations when applying for trade finance, including the requirement that goods sold are finished products.

Invoice Finance is also commonly used within the wholesale and international trade sectors, providing working capital through agreed prepayments against invoices. This ensures suppliers are paid on time, supports cash flow, and allows trading activity to run smoothly.

Item deInject cash into your business to fund new assets, expand operations, or improve cash flow. An unsecured business loan can help you overcome financial hurdles and finance key projects, whether it’s hiring new staff, purchasing stock, or moving into new premises.

With our fast and expert service, your loan could be in your bank account in just a few days.

How It Works

Step 1: Get in touch with our team
Step 2: We review your needs and discuss options with our network of lenders
Step 3: Your loan agreement is arranged

Our team of specialists makes the process simple, transparent, and jargon-free, ensuring you get the funds you need quickly and efficiently.