Invoice finance to release cash tied up in unpaid invoices
If your business issues invoices on payment terms, you'll know how much pressure delayed payments can put on cash flow. Invoice finance allows you to release a significant proportion of the value of outstanding invoices soon after they're raised, rather than waiting 30, 60 or 90 days for customers to pay.
Quick overview
Used for
Invoice finance is widely used by businesses that sell to other businesses on credit terms, helping to smooth cash flow, fund growth, cover payroll and supplier costs, and reduce the strain caused by slow-paying customers.
Suitable for
Suitable for B2B businesses that issue invoices with payment terms - including those in manufacturing, wholesale, recruitment, logistics, professional services and construction - particularly where growth or seasonal demand puts pressure on cash flow.
Clearpath compares the structures available - including factoring and invoice discounting - and helps you choose a provider whose approach suits how you run your business and how visible you want the arrangement to be to your customers.
Typical benefits
- Releases cash from unpaid invoices typically within a short period of raising them
- Funding can grow in line with your sales, rather than being fixed at a set amount
- Some structures include credit control support, which can reduce the administrative burden of chasing payments
- Can ease the cash flow pressure that often comes with rapid growth or large orders
Key considerations
- Factoring typically involves the provider managing collections, while invoice discounting usually allows you to retain control - the right choice depends on how visible you want the arrangement to be to customers
- Costs are usually based on the value of invoices funded and the level of service provided, so it's worth comparing these clearly
- Some arrangements involve funding your full sales ledger, while others can be more selective - we'll explain the difference
- It suits businesses with reasonably reliable B2B customers, since the funding is linked to the invoices they owe
Clear advice on invoice finance, from first call to completion
Whole-of-market comparison
We compare invoice finance across our panel of mainstream and specialist lenders to find options that genuinely fit your circumstances.
Plain-English guidance
We explain the costs, terms and trade-offs clearly, so you can make a confident, informed decision without the jargon.
A managed process
We prepare your case, liaise with lenders and keep you updated throughout - so you can stay focused on running your business.
Common questions about invoice finance
With factoring, the finance provider typically takes on credit control and collects payment directly from your customers. With invoice discounting, you usually continue to manage your own sales ledger and collections, with the arrangement remaining confidential. Which suits you best depends on your processes, your customer relationships, and your preferences - we'll help you weigh this up.
You might also consider
Many businesses use a combination of finance types depending on what they're trying to achieve.
Talk to Clearpath about invoice finance
Call for a clear, no-obligation conversation about whether invoice finance is the right route - and what's realistically available to you.