Invoice factoring for UK B2B businesses
Release cash from unpaid B2B invoices while receiving support around collections, debtor management and credit control.
- ✓ For UK Limited Companies and PLCs
- ✓ Turnover from £1m to £250m
- ✓ B2B businesses
- ✓ All sectors considered
What is invoice factoring?
Invoice factoring is a type of invoice finance that allows a business to release cash from unpaid B2B invoices, often with additional support around collections and debtor management.
When your business raises invoices to other businesses, an invoice factoring provider may advance a percentage of the invoice value before your customer pays. This can help improve cashflow and provide faster access to working capital.
Invoice factoring often includes support with collections and credit control. This can be useful for businesses that want to reduce the internal time spent chasing payments or managing debtor balances.
Facilities can vary depending on your sector, debtor profile, turnover, customer concentration and wider business circumstances.
Best suited to: B2B businesses that want to improve cashflow and may benefit from additional support with collections, debtor management or credit control.
Why businesses use invoice factoring
Invoice factoring can support cashflow while giving your business additional help with collections and debtor management.
Improve cashflow
Access funding against unpaid invoices rather than waiting for customers to complete their normal payment terms.
Collections support
Invoice factoring can include support with collections, helping reduce time spent chasing payments internally.
Reduce pressure
Improve working capital where long payment terms are creating pressure on suppliers, payroll or overheads.
Support growth
Use available working capital to support larger contracts, recruitment, stock purchases or expansion plans.
Flexible funding
Funding availability may increase as your sales ledger grows, helping support business growth over time.
Switch or refinance
Explore alternative factoring facilities if your current provider no longer fits your funding or service needs.
Invoice factoring may suit businesses that want:
- ✓ Faster access to cash from unpaid B2B invoices
- ✓ Support with collections and debtor management
- ✓ Help reducing internal credit control pressure
- ✓ Working capital for growth, payroll or suppliers
- ✓ A facility that can grow with sales ledger value
Who we help
Invoice Advance works with established UK B2B Limited Companies and PLCs looking to explore invoice factoring and wider invoice finance options.
- ✓ Growing and established companies
- ✓ Businesses with long customer payment terms
- ✓ Companies switching or refinancing facilities
- ✓ All B2B sectors considered
Invoice factoring vs invoice discounting
Both options can improve cashflow by releasing funds from unpaid invoices, but they usually differ in how customer collections and credit control are managed.
Invoice Factoring
Often suits businesses that want cashflow support plus help with collections, debtor management and credit control.
Invoice Discounting
Often suits businesses that want to keep control of collections and customer relationships while accessing invoice funding.
Service style
Factoring is usually more service-led, while discounting is generally more focused on funding and internal control.
How invoice factoring quotes work
The process starts with a simple enquiry, then suitable factoring options can be reviewed based on your business, debtor profile and funding requirements.
Initial enquiry
Share your business details, turnover, sector and what you want the facility to support.
Facility review
Your requirements are reviewed to identify whether invoice factoring may be suitable.
Indicative options
Where appropriate, suitable funders can provide indicative facility options and pricing.
Next steps
If you want to proceed, funders may request further information to assess the facility.
Invoice factoring questions
Common questions from UK B2B businesses considering invoice factoring.
What is invoice factoring?
Invoice factoring is a type of invoice finance that allows businesses to release funding from unpaid invoices, often with additional support around collections and credit control.
Is invoice factoring confidential?
Invoice factoring is often disclosed to customers because the provider may support collections. If confidentiality is important, confidential invoice discounting may be more suitable, subject to funder criteria.
How is factoring different from invoice discounting?
Factoring often includes support with collections and credit control. Invoice discounting usually allows the business to keep more control of customer communication and payment chasing.
What businesses use invoice factoring?
Invoice factoring is commonly used by B2B businesses that raise invoices to other businesses and want to improve working capital while reducing pressure around collections.
Can I switch an existing factoring facility?
Yes. Businesses often review facilities because of pricing, service, funding availability, structure or changing requirements. Invoice Advance can help explore suitable alternatives.
Start your Quick Quote
Explore invoice factoring options for your business. It only takes a minute to start your enquiry.