What Is a Prepayment in Invoice Finance?
The prepayment is the amount advanced to you against an invoice, the same as the advance. On an 85% advance rate against a £10,000 invoice, the prepayment is £8,500. The remaining £1,500 is the retention/reserve, released when your customer pays.
OM
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: 8 April 2026