Your customers might take 30, 60 or even 90 days to pay, but your wages, suppliers and tax bills won’t wait that long.
Invoice finance bridges that gap. It releases cash tied up in unpaid invoices, helping businesses improve cash flow, take on new work and grow without waiting for customers to pay.
Invoice finance is one of the most competitive areas of commercial finance, but not all facilities are the same.
At Able Commercial Finance, we don’t sell one lender’s product, we work across the market, with access to more than 100 invoice finance providers, helping businesses find a facility that genuinely fits their needs.
There are four reasons businesses choose Able:
Whole-of-market access
Different lenders suit different businesses. A recruitment company has very different requirements to a manufacturing organisation, but we find the right lender, not the most convenient one.
Independent advice
We’re not tied to any lender. Our recommendation is based on what works for your business, not on sales targets or preferred partnerships.
Experience on both sides of the table
We understand how facilities are structured, how pricing works and where additional charges can sometimes be hidden.
Ongoing support
Putting a facility in place is only the start. If your business grows, changes direction or your current provider stops delivering value, we’ll help you review the market and find a better solution.
Invoice finance allows businesses to unlock cash from unpaid customer invoices. Once you raise an invoice, the finance provider advances a percentage of its value, often up to 90%, usually within 24 hours. When your customer pays the invoice, the remaining balance is released to you, less the agreed fees.
Invoice finance can provide a flexible option for your business and help to reduce the risk of any late payments. There are usually some basic requirements to be eligible for invoice finance, such as customer type and minimum turnover.
There are two main types of invoice finance.
Factoring
With factoring, the finance provider manages your credit control and collections process. This can work well for smaller businesses or companies without dedicated credit control resources.
Invoice Discounting
With invoice discounting, you keep control of your own customer collections. In many cases, the facility can operate confidentially, meaning your customers may not know it is in place. This tends to suit larger or more established businesses with strong internal processes.
There is also Selective Invoice Finance, where individual invoices are funded rather than the entire sales ledger. This can be useful for businesses that only need occasional access to working capital and is typically offered by specialist providers.
The cost of invoice finance is usually made up of two charges.
The exact cost depends on factors such as turnover, debtor quality, sector, facility size and trading history.
Invoice finance works best for B2B businesses that invoice other businesses on agreed payment terms. It is particularly popular with:
Generally, the strongest candidates have regular invoicing, clear payment terms and a good-quality sales ledger.
It is less suitable for businesses that regularly deal with disputed invoices, one-off project contracts or highly complex debtor arrangements. If that’s the case, there may be more suitable funding options available and we’ll tell you if that’s true.
Initial Conversation
We discuss your business, customers, cash flow challenges and funding requirements.
Needs Assessment
We review your sales ledger, trading position and current funding arrangements.
Lender Sourcing
We identify suitable lenders, compare facilities and negotiate terms on your behalf.
Ongoing Support
Once the facility is in place, we remain available to review performance and help if your requirements change.
If you’d like to discuss invoice finance, existing facilities or alternative options, drop Paul Morgan a message or call 01625 403121 for an informal conversation.
In straightforward cases, a facility can often be arranged within one to two weeks. More complex situations or provider switches may take a little longer.
Yes - we do it regularly. Sometimes the issue is cost, sometimes service and sometimes the facility simply no longer fits the business. We'll review the market and tell you honestly whether moving makes sense.
Not necessarily - in many cases, larger customers can strengthen an application because lenders are comfortable with the debtor quality, even if payment terms are longer.
The service charge covers operating the facility. The discount rate is the cost of the funds you actually use. Both matter when comparing providers, which is why headline rates rarely tell the full story.
