Invoice Finance
Turn unpaid invoices into working capital. Accuprime is a Reigate, Surrey-based credit broker helping businesses across Surrey, London and the UK release cash tied up in their sales ledger through factoring, invoice discounting and selective invoice finance.
What is invoice finance?
Invoice finance is a way to borrow against money your customers already owe you. When you raise an invoice on credit terms — often 30, 60 or even 90 days — your cash is locked up until the customer pays. Invoice finance bridges that gap: a lender advances you a large proportion of the invoice value almost immediately, and you receive the balance (less fees) once the customer settles.
For businesses that sell to other businesses (B2B) and routinely wait weeks for payment, this can transform cash flow. Instead of chasing late payers while trying to fund wages, suppliers and growth, you smooth out the peaks and troughs of your working capital cycle.
Types of invoice finance
Invoice factoring
With factoring, the lender advances funds against your invoices and also takes over credit control — issuing statements and chasing payment from your customers. Your customers usually know that finance is in place because they pay the finance provider directly. Factoring suits smaller and growing businesses that would benefit from outsourcing collections and freeing up internal time.
Invoice discounting
With invoice discounting, you keep responsibility for collecting payment and managing your own sales ledger. The facility is normally confidential, so your customers are unaware finance is in place. This option tends to suit established businesses with strong internal credit control processes that want funding without handing over customer relationships.
Selective invoice finance
Selective invoice finance — also called spot factoring or single invoice finance — lets you fund individual invoices on demand rather than committing your whole ledger. It is flexible and useful for one-off cash flow gaps or a single large order, though the cost per invoice is generally higher than a whole-turnover facility.
Factoring vs invoice discounting at a glance
| Feature | Factoring | Invoice discounting |
|---|---|---|
| Who collects payment | The lender | You |
| Customer awareness | Usually disclosed | Usually confidential |
| Credit control | Handled for you | Stays in-house |
| Typically suits | Smaller, growing firms | Established firms with strong processes |
How it works
Once a facility is agreed, the process is straightforward: you raise an invoice and submit it to the lender, you draw down an agreed advance (often a high percentage of the invoice value) usually within a day or two, your customer pays on their normal terms, and the lender releases the remaining balance to you after deducting their fee. The cycle then repeats with each new invoice.
Who is invoice finance suitable for?
Invoice finance works best for B2B businesses that invoice on credit terms — common in recruitment, manufacturing, wholesale, construction-related trades, transport, logistics and professional services. It is less suitable for businesses that sell mainly to consumers or take payment up front. If your growth is held back by the gap between doing the work and getting paid, it is well worth exploring.
What affects cost and eligibility
Lenders look at your turnover, your sector, the spread and creditworthiness of your customers, the quality of your invoicing and the age of your debts. Costs usually combine a service fee (a percentage of turnover) and a discount charge on the funds you draw. There is no single published rate — rates and terms depend on the lender and your circumstances. For broader guidance on managing money owed to your business, the government's advice on late commercial payments and debt recovery is a useful starting point.
Pros and cons
Advantages: faster access to cash, improved and more predictable cash flow, funding that grows with your sales, and (with factoring) outsourced credit control. Things to weigh up: fees reduce the net amount you receive, some facilities carry minimum terms or notice periods, and customer relationships can be affected where finance is disclosed. We help you compare options so the structure genuinely fits your business.
How Accuprime helps
As a credit broker we are not tied to a single product. We assess your sales ledger, cash flow needs and how you want to handle customer relationships, then approach suitable lenders on your behalf. If invoice finance is not the right fit, we can look at alternatives such as a business loan or asset finance. Explore our full range on the finance services hub, try the business loan calculator, or speak to our Reigate accountants via the contact page.
We act as a credit broker, not a lender. Finance is subject to status, eligibility and lender terms.
Frequently Asked Questions
What is the difference between factoring and invoice discounting? ▼
With factoring, the lender manages your sales ledger and chases payment directly from your customers, who usually know finance is in place. With invoice discounting, you keep control of credit control and collection, and the arrangement is normally confidential. Both release cash against unpaid invoices — factoring suits smaller businesses wanting support, discounting suits established firms with their own credit control.
How quickly can I release cash from an invoice? ▼
Once a facility is set up, you can typically draw an advance — often a large percentage of the invoice value — within roughly 24 to 48 hours of raising and submitting an eligible invoice. Initial setup, including due diligence on your ledger, can take a little longer. The exact advance rate and speed depend on the lender and your circumstances.
Is invoice finance only for big businesses? ▼
No. Invoice finance is used by sole traders, SMEs and larger firms across many sectors, including recruitment, manufacturing, wholesale, transport and professional services. The key requirement is that you invoice other businesses (B2B) on credit terms. Selective invoice finance even lets smaller businesses fund a single invoice rather than the whole ledger.
What is selective invoice finance? ▼
Selective invoice finance, sometimes called spot factoring or single invoice finance, lets you raise cash against one specific invoice or a chosen few, rather than committing your entire sales ledger. It offers flexibility and is useful for occasional cash flow gaps or one-off large orders, though the cost per invoice is often higher than a whole-ledger facility.
How much does invoice finance cost? ▼
Costs usually combine a service or management fee (a percentage of turnover) and a discount charge on the funds you draw, similar to interest. Factoring tends to cost more than discounting because it includes credit control. There is no single rate — rates and terms depend on the lender, your turnover, sector and the creditworthiness of your customers.
Will my customers know I use invoice finance? ▼
It depends on the product. Factoring is usually disclosed, because the lender contacts your customers to collect payment. Confidential invoice discounting is designed so customers are unaware finance is in place, as you continue to collect payment yourself. We can help you choose a structure that fits how you want to manage customer relationships.
Release cash from your invoices
Tell us about your sales ledger and we'll find the right invoice finance facility for your business.