Questions About Invoice Finance
Straight answers. No sales pitch. 25 questions answered.
Can I get invoice finance with bad credit?
Yes. Providers assess your customers, not you.
My customers take 60-90 days to pay
Invoice finance bridges the gap. Paid in 24 hours, not 90 days.
Is invoice finance worth it?
If late payments cost more than 1-2% of turnover, yes.
My bank cut my overdraft
Invoice finance is the most common replacement.
I won a big contract but can't fund it
This is exactly what invoice finance was designed for.
Will my customers know?
With discounting, no. With factoring, yes.
How quickly can I get set up?
3-10 days. Some providers offer 48-hour fast track.
What if my customer doesn't pay?
Depends on recourse vs non-recourse.
Can startups get invoice finance?
Yes, from day one with creditworthy customers.
How do I get out of a contract?
12 months typical, 3 months notice.
How long is an invoice finance contract?
12 months standard. Some offer rolling 30-day terms.
Invoice finance vs merchant cash advance
IF for B2B invoices. MCA for card payment businesses.
What is debtor concentration?
When too much revenue comes from one customer.
Can I factor export invoices?
Yes — 80+ countries with multi-currency support.
What is a debenture?
A legal charge registered at Companies House.
How does invoice finance work with VAT?
The advance includes the VAT element.
What happens at the end of a contract?
Wind-down over 30-90 days as customers pay.
Can a sole trader get invoice finance?
Possible but harder. Ltd companies preferred.
What is whole-turnover factoring?
All invoices go through the facility.
Invoice finance vs revenue-based finance
IF for invoices. RBF for subscription businesses.
Can I finance just one invoice?
Yes — selective/spot factoring. No long-term contract.
How does credit control work with factoring?
Provider chases your customers for payment.
What is confidential factoring?
Your customers don't know you use finance.
What is the minimum turnover?
£50,000/year at most providers. Some lower.
Does it affect my credit rating?
Not on your credit file. Debenture at Companies House.