Transform Your Business cash flow with Professional Invoice Finance

Invoice finance provides immediate access to cash tied up in unpaid invoices, offering UK businesses a flexible alternative to traditional loans. Whether through invoice factoring or invoice discounting, unlock up to 95% of your invoice value within 24-48 hours while maintaining business growth momentum.

What is Invoice finance?

Invoice finance releases capital from unpaid invoices by lending money based on the balance of debt owed to a company. This working capital solution helps businesses bridge the gap between issuing invoices and receiving payment, ensuring consistent cash flow for operational needs and growth opportunities.

Types of Invoice finance

Invoice Factoring

Invoice factoring allows you to sell your outstanding invoices to a provider, who gives you an immediate cash advance of 80% to 95% of invoice value and takes over your customer collections.

Key Features:

• Immediate cash advance up to 95% of invoice value

• Complete sales ledger management service

• Credit protection on approved customers

• Professional debt collection service included

Invoice Discounting

Invoice discounting involves sending unpaid invoices to the financing company who pay out 90% of the invoice value, less the agreed service fee, while your customers remain unaware you're using invoice finance.

Key Benefits:

• Confidential funding solution

• You retain control of customer relationships

• Higher advance rates typically available

• Suitable for established businesses with strong credit control

Spot Factoring

Spot factoring refers to an invoice finance arrangement where businesses can choose to fund individual invoices rather than committing to ongoing facility agreements.

Perfect For:

• Occasional working capital requirements

• Project-based businesses

• Selective invoice funding needs

• Testing invoice finance before full commitment

Invoice finance rates and costs

Competitive Rate Structure

You can generally expect to pay between 1.5% and 3% above the base rate for invoice finance, though rates vary based on business risk profile and invoice quality.

Factoring Fee Examples

A factoring company's discount or factor rate generally varies between 1.5% and 5%, while factoring fees are usually charged as a percentage of your total invoice value (3% to 8%).

Rate Calculation Example:

• Invoice Value: £10,000

• Factoring rate of 3% per month would result in a fee of £300 for a 30-day period

• With an 80% advance, the business would receive £8,000 immediately

Industries perfect for invoice finance

Manufacturing & Engineering

Manufacturing, engineering, transport, and construction industries could benefit from invoice factoring and discounting, with clear advantages for any business with a relatively stable sales ledger.

Professional Services

Consultancies, IT services, and professional firms benefit from improved cash flow while maintaining client confidentiality through invoice discounting.

Construction & Trade Services

Project-based businesses can access immediate funding for materials and labor costs while awaiting customer payments.

Healthcare & Education

Private healthcare providers and educational services can maintain operations while managing extended payment terms.

Why chose Doulton invoice finance service

Extensive Lender Network

Access to over 40 specialist invoice finance lenders ensures competitive rates and flexible terms tailored to your specific business requirements.

Lightning-Fast Processing

Get fast quotes, applications processed in days, with funding decisions typically made within 48 hours.

Market-Leading Rates

Secure optimal pricing through our established relationships with leading invoice finance providers across the UK.

Expert Advisory Service

Benefit from experienced advisors who understand complex business structures and provide personalized solutions beyond simple product placement.

Invoice finance qualification criteria

Business Requirements

• Minimum 3-12 months trading history depending on facility type

• UK-registered business with creditworthy customers

• Regular invoicing to approved trade customers

• Demonstrable sales ledger management capability

Invoice Quality Assessment

• Invoices to approved commercial customers

• Standard payment terms typically 30-90 days

• Consistent invoice volumes and values

• Strong customer payment history preferred

Advanced invoice finance features

Comprehensive Credit Protection

Many facilities include bad debt protection, safeguarding your business against customer non-payment on approved invoices.

Technology Integration

• Online portal access for real-time facility management

• Automated invoice submission and processing

• Digital reporting and cash flow forecasting

• Integration with accounting systems

Flexible Facility Structures

• Single invoice funding through spot factoring

• Whole turnover facilities for ongoing funding

• Selective invoice discounting options

• International invoice finance for export businesses

Initial Assessment

Discuss your cash flow requirements with our invoice finance specialists who evaluate your sales ledger and recommend optimal solutions.

Lender Matching

Access our network of 40+ specialist lenders to identify providers offering the most competitive terms for your business profile.

Facility Setup

Streamlined application process with dedicated support ensures efficient setup and quick access to working capital.

Ongoing Management

Professional account management provides ongoing support, facility reviews, and additional funding as your business grows.

Comparing invoice finance options

Invoice Factoring vs Discounting

The general rule about which one is best comes down to how efficient the credit collection, accounts and book debt department is. Generally large and established businesses with collections departments opt for invoice discounting and those who don't opt for factoring.

Confidentiality Considerations

The essential differences between invoice factoring and invoice discounting lie in who takes control of the sales ledger and responsibility for collecting payment, and the level of confidentiality.

Cost vs Control Trade-offs

While factoring typically costs more due to credit management services, it provides complete debtor management, whereas discounting offers lower costs but requires internal credit control capability.

Advanced invoice finance solutions

High-Growth Technology Companies

Tailored solutions for software and technology businesses with subscription revenues or project-based billing cycles.

International Trade Finance

Support for import/export businesses requiring currency hedging and international invoice finance facilities.

Acquisition Finance Integration

Combine invoice finance with acquisition funding for businesses expanding through strategic purchases.

Contact our Invoice Finance team

Expert Consultation Available

Speak directly with experienced invoice finance advisors who understand the complexities of different facility types and provider options.

Quote Comparison

Access competitive rate comparisons from multiple lenders through our advanced matching system.

Contact Information

Phone: 0204 6211776
Facility Range: £10,000 - £10 million+
Advance Rates: 80% - 95% of invoice value
Decision Time: 24-48 hours typical Lender Network: 40+ specialist providers

Unlock your business potential with professional invoice finance solutions designed to accelerate cash flow and support sustainable growth across all business sectors.