Describe the ledger
Share annual turnover, monthly B2B invoicing, aged debtor value, debtor quality, customer concentration, payment terms, disputes or credit notes, and any existing facility.
Cash-flow finance
Invoice finance for UK businesses
Direct answer: invoice finance may allow an eligible business to access part of the value of approved business-to-business invoices before customers pay. The facility depends on the business, debtor book, customer quality, invoice eligibility and provider assessment.
NBS Finance is a commercial finance broker and introducer, not a lender. A provider sets availability, charges, security requirements and terms.
What reaches the bank account?
Hypothetical example, not a quote: after completed work, a £20,000 eligible B2B invoice at an assumed 85% advance creates £17,000 of gross funding. If a separate £1,000 reserve applies, £16,000 may be drawable before fees or existing drawings. The £3,000 unadvanced part is separate from that reserve. When the customer pays, receipts clear the advance; remaining amounts are released after agreed charges and adjustments.
Funding follows eligibility and the facility’s controls. A new facility first needs assessment, documentation and any conditions satisfied; later invoice drawings are a separate process. Invoice finance does not automatically fund a future order or an unperformed contract. Compare total cost, larger-facility headroom and an existing facility review.
Invoice finance quick scan
| Area | Useful starting information | Why it matters |
|---|---|---|
| Invoices | Completed business-to-business sales, terms and ageing | Not every invoice is eligible |
| Customers | Debtor list, limits, concentration and payment history | Customer quality and spread affect availability |
| Disputes | Credits, set-off, returns or unresolved queries | A disputed debt may be excluded |
| Current facility | Agreement, balance, security, notice and termination costs | A transfer must account for the existing provider |
Construction payment applications and recruitment payroll cycles can need specialist assessment. See construction invoice finance or recruitment invoice finance where relevant.
Factoring and invoice discounting compared
| Point | Factoring | Invoice discounting |
|---|---|---|
| Credit control | The provider normally manages or supports collection. | The business usually retains day-to-day collection. |
| Customer contact | Customers are usually aware and may pay the provider. | The facility may be disclosed or confidential, depending on the arrangement. |
| Business systems | Can include credit-control support. | Providers often expect stronger reporting and credit-control capability. |
| Best question to ask | Who manages collections, how are disputes handled and which charges apply? | |
Recourse, credit protection and the treatment of unpaid invoices depend on the agreement. Read the facility documents carefully.
Keeping collections in-house? Review invoice discounting costs and credit-control requirements. For an occasional requirement against chosen invoices, compare selective or spot invoice finance. Use the commercial finance costs and rates guide to compare all charges and obligations.
Larger debtor book? Start with the ledger
Discuss operations
NBS Finance clarifies how invoices are raised, approved, collected and reconciled.
Provider assessment
NBS can review facilities from £25,000 to £10 million+ through its lender and specialist partner network. Larger requirements may also be considered. Capacity depends on the ledger and provider assessment, not simply the amount requested.
Top 10 questions
Invoice finance questions, answered clearly
01 · What is invoice finance?
Invoice finance releases cash against approved unpaid business-to-business invoices before the customer pays. The debtor book is the main funding asset, so the provider assesses the business, customer credit quality, invoice evidence and payment terms.
02 · How does invoice finance work?
The business assigns eligible invoices to the provider and draws an agreed percentage of their approved value. When the customer pays into the agreed account, the provider deducts the advance and charges and releases the remaining approved balance. New eligible invoices replenish the available funding.
03 · What is the difference between factoring and invoice discounting?
With factoring, the provider normally manages or supports sales-ledger collection and customers are usually aware. With invoice discounting, the business generally retains credit control and the facility may be confidential, depending on the agreement. Compare them in the full guide.
04 · How much of an invoice can be released?
UK invoice-finance advances commonly start around 80%–90% of an eligible invoice, and current NBS Finance routes can reach up to 95%. Usable cash can be lower after debtor limits, reserves, credit notes, disputes, concentration and other deductions. The remaining approved balance is released after the customer pays and charges are deducted.
05 · How quickly can funds become available?
After a facility is live, approved invoice funding can be available within 24 hours. Initial set-up commonly takes several working days because the provider reviews the business, debtor book, invoices, systems and legal position. The provider must confirm both the facility start date and each invoice's eligibility.
06 · Will my customers know I use invoice finance?
Factoring is normally disclosed because customers pay the provider and its credit-control activity is visible. Invoice discounting can be disclosed or confidential; confidential facilities require provider approval and suitable reporting and credit-control systems. Confirm what appears on invoices, where customers pay and who contacts them.
07 · Which businesses and invoices can qualify?
The core fit is a UK business selling completed goods or services to creditworthy business customers on credit terms. Each invoice needs clear evidence and must be free from unresolved dispute. Consumer invoices, old debts, contractual set-off, heavy customer concentration and applications for payment need different or specialist treatment; construction and recruitment have dedicated routes.
08 · How much does invoice finance cost?
Costs can include a service fee, discount charge on funds used, credit-protection charges and other facility or transaction fees. Pricing can depend on turnover, invoice volume, customer spread, administration and risk. Compare the full written cost and any minimums or termination obligations.
09 · What happens if a customer does not pay or disputes an invoice?
A disputed or overdue invoice may become ineligible, reduce availability or require the business to repay funds advanced against it under a recourse facility. Credit protection may cover specified insolvency risks but not every dispute or non-payment event; check exclusions and responsibilities.
10 · What is recourse and non-recourse invoice finance?
With recourse, the business remains responsible for repaying the advance if the customer does not pay within the agreed terms. Non-recourse or credit-protected arrangements may cover defined bad-debt risks, usually subject to limits, conditions and exclusions. The label alone does not describe the full protection.
Compare the operation
Choose questions before choosing a facility
The guide explains customer contact, credit control, eligibility, charges and responsibilities in more detail.
Does the ledger need a specialist review?
Overseas customers, conditional contractual payments and several asset pools create different assessment needs.
Export invoice finance
Review eligible overseas B2B invoices, countries, currencies and customer concentration.
Contractual debt finance
Separate applications, approved amounts and retentions before reviewing a contract-led requirement.
Asset-based lending
Review several eligible asset pools when invoices alone do not explain the whole requirement.
Haulage costs due before invoices are paid?
Compare practical fuel-cost checks with the circumstances where invoice finance may help. Read the haulage fuel costs and cash-flow guide.
Children’s home payroll due before council receipts?
Established children’s residential care operators can review invoice finance for eligible local-authority placement invoices. Understand billing in arrears, payment terms, overdue queries and funding eligibility before choosing a facility.
Care and NHS supplier invoice finance
Match the business activity and accepted receivables to the right guide: domiciliary care invoice finance, NHS supplier invoice finance or adult supported-living finance. Public-sector customers do not make every invoice eligible.
Tell us about the invoices
Start with turnover, customers, payment terms and the cash-flow gap you are trying to manage.
Referring a client for invoice finance?
Accountants, advisers and other professional introducers can read how to refer a business with eligible unpaid B2B invoices.
Already have a facility? Review it before deciding to switch
Compare usable cash, total cost, limits and service before deciding whether to stay, renegotiate or explore a change. Request an existing invoice finance facility review.