Invoice Factoring

Invoice factoring is a way for businesses to raise money by selling invoices to a factoring company at a discount. Factoring usually includes credit control services, and helps companies release cash from their debtor book.

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Invoice Factoring - Features and benefits through Funding Options: 

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Invoice Factoring - How does it work?

  • A factoring provider lends against your customer invoices, this enables you to receive most of the invoice cash value immediately rather than waiting weeks or months to get paid.

  • The amount of finance available will typically be stated as a percentage of your outstanding debtor book or sales ledger, but may be constrained by specific terms such as limiting exposure to a single large customer.

  • Typically, payments from your customers will go into a bank account controlled by the factoring company, and your customers will be aware that you use factoring. 

  • From the lender’s perspective, factoring is lower-risk because they’ll have more control over ensuring your customers pay you on time. Factoring is often what lenders favour for companies with low turnover, a short trading history, or other challenging circumstances.

Financial product information

Representative example*

8.15% APR Representative based on a loan of £50,000 repayable over 24 months. Monthly repayment of £2,258.19. The total amount payable is £54,196.56

*Some lenders may apply fees during the application process, please note that these are set and provided by these entities

Annual Percentage Rate

Rates from 2.75% APR

Repayment period

6 months to 30 years terms

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