Receivables Finance — The Bank Jargon Version of Invoice Finance
Receivables finance is what banks and large corporates call invoice finance. If your bank manager or accountant has mentioned "receivables finance" or "receivables financing," they are talking about the same thing as invoice factoring or invoice discounting — a provider advances cash against your unpaid invoices. The name comes from the accounting term "accounts receivable" (money owed to you).
Quick Reference
Direct Answer
Receivables finance is the banking and corporate term for invoice finance. It means advancing cash against accounts receivable (unpaid invoices). The product is identical to invoice factoring and invoice discounting — only the terminology differs. Used mainly by banks, large businesses, and professional advisors.
Summary
Receivables finance = invoice finance. The term is used by banks (HSBC, Barclays, Lloyds all have 'receivables finance' divisions), large corporates, accountants, and in formal financial documentation. Small businesses typically call the same product invoice finance, factoring, or invoice discounting. No difference in how it works, what it costs, or who provides it.
This Page Covers
What receivables finance means, why the term exists, and how it maps to invoice finance products available to UK businesses
Not Covered Here
How invoice finance works in detail (see /guides/how-invoice-finance-works/), factoring vs discounting (see /guides/factoring-vs-discounting/), provider comparison (see /compare/)
A Quick Translation Guide
The invoice finance industry has more names for the same thing than any other financial product. Here is a cheat sheet:
| Term | Who Uses It | What It Actually Means |
|---|---|---|
| Receivables finance | Banks, corporates, accountants | Invoice finance (umbrella term) |
| Invoice finance | Everyone (modern term) | Umbrella term for factoring + discounting |
| Invoice factoring | SMEs, brokers | Provider collects from your customers |
| Invoice discounting | Larger businesses | You collect from your customers (confidential) |
| Debt factoring | Old-school, outdated | Same as invoice factoring |
| Asset based lending | Banks, large corporates | Invoice finance + other assets (broader product) |
Why Banks Use Different Language
Banks package their invoice finance products under "receivables finance" divisions because it sounds more sophisticated — and because for larger businesses, the product often includes features beyond basic factoring, like multi-currency support, cross-border receivables, and integration with supply chain finance.
If you are a business turning over less than £5 million, you do not need to worry about the distinction. You are looking for invoice finance, and whether the provider calls it receivables finance, factoring, or invoice discounting, the core product is the same: they advance cash against your unpaid invoices.
Where to Go From Here
Now that you know receivables finance is just invoice finance in a suit, here are the pages that will actually help you:
- How invoice finance works — plain English explanation of the whole process
- Factoring vs discounting — which type suits your business
- What it costs — full fee breakdown with worked examples
- Compare providers — side-by-side comparison of UK providers
Oliver Mackman
Director, Market Invoice
Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.
Last reviewed: 7 April 2026