Invoice Finance FAQ


What is invoice finance?

Put simply, it is borrowing money on a percentage of the invoice value, which is instantly available when invoices are raised. Dependant on how quick your suppliers pay can drastically improve cashflow. The remaining percentage balance is paid when the client settles the invoice.

How does invoice Finance work?

  • You invoice your customers in the normal manner
  • You would upload (send) details of invoices raised
  • You then download agreed percentage of the funds, which can be same day if required
  • You will chase the invoices in normal fashion and receive the balance of the invoice when settled

What are the costs?

The service charge is typically charged as a percentage of your turnover and covers the management and administration of the account. The discount charge is a daily calculation on the amount you borrow and charged as a percentage over the base rate

What are the benefits?

  • Get an immediate cash injection
  • Its finance that grows with your turnover
  • Accessing the money can bring your plans to life, instigate marketing plans or buy new equipment
  • Extensive credit history is not required
  • Get instant cashflow to cover wages, materials and costs – negotiate better terms with suppliers
  • Flexible lending in line with sales growth
  • Assistance in chasing funds and bad debt cover if required

Do i qualify?

If you send invoices to other businesses and have a minimum turnover of £50,000, you will qualify for invoice finance If you would like to speak to us about your own finance facilities or would like to explore options, please email us at: info@thebusinessboard.co.uk or call our office number on 0118 338 1818.