Review Your Existing Invoice Finance Facility
Review the usable cash, total cost and service in your existing invoice finance arrangement. NBS can assess whether your business should stay, renegotiate or explore a switch through its lender and specialist partner network.
- Fees or reserves have increased without a clear benefit.
- A customer limit or excluded debt is restricting usable cash.
- Renewal is approaching, or the service no longer fits your business.
Useful for established businesses with existing facilities, including £250,000+ requirements. Smaller facilities can also be reviewed; suitability depends on the circumstances. NBS Finance is a commercial finance broker and introducer, not a lender.
Start with usable cash, not the headline advance rate
A stated 90% advance does not mean 90% of your entire ledger will be available. Eligibility rules, individual debtor limits, concentration restrictions, reserves and the overall facility ceiling can all reduce funding. Amounts already drawn and charges also affect what remains available today.
Benchmark the same ledger, date and usage pattern. Compare a normal trading month and a peak month, rather than a current statement with an optimistic new-provider illustration. Understand the underlying invoice finance structure before comparing terms.
What a facility review examines
| Area | What to establish | Why it matters |
|---|---|---|
| Annual total cost | Service and discount charges, minimum fees, audit and administration charges, debtor protection and any exit costs. | A lower headline fee can be outweighed by minimum charges or additional costs. |
| Available funding | Approved ceiling, advance percentage, eligible and excluded debts, concentration rules, individual debtor limits, reserves and retention. | The approved limit is a ceiling, not a promise of accessible cash. |
| Operating fit | Credit control, collections, confidentiality, reporting, response times and service escalation. | A workable facility must fit your customer relationships and internal team. |
| Protection and obligations | Bad debt protection scope, exclusions and claim conditions; security, guarantees, notice periods and early termination provisions. | Compare the protection and obligations you would retain or change. |
Use the invoice finance costs guide to separate service charges from the cost of funds. Factoring and invoice discounting can involve different collection responsibilities.
A practical existing-facility health check
- Can you reconcile today’s funding availability to the eligible ledger and reserves?
- Which customers or invoices are excluded, and are the reasons clear?
- Does a concentrated customer balance regularly hit a debtor limit?
- How much do you pay over a full year, including minimum and occasional charges?
- Are disputed debts, credit notes or overdue balances reducing availability?
- Does bad debt protection cover the customers and events you expect?
- Are reporting and collection arrangements working for your team?
- When does notice need to be served, and what could an early exit cost?
An unclear answer is a reason to investigate, not proof that your current provider is unsuitable. For substantial ledgers, larger facility assessment also considers concentration and headroom.
Worked comparison: 90% can release less than 80%
Hypothetical calculation, not lender terms. Both facilities assess the same £500,000 ledger. Assume debtor-limit and eligibility adjustments have already been included in eligible debt; the separate reserve is then deducted once. Assume both ceilings are sufficient.
| Calculation | Facility A | Facility B |
|---|---|---|
| Headline advance | 90% | 80% |
| Eligible debt after exclusions and debtor limits | £350,000 | £450,000 |
| Eligible debt × advance | £315,000 | £360,000 |
| Separate assumed reserve | −£20,000 | −£10,000 |
| Gross availability after reserve | £295,000 | £350,000 |
| Existing drawings / assumed transfer settlement | −£250,000 | −£250,000 |
| Assumed immediate fees | −£2,000 | −£4,000 |
| Illustrative remaining usable cash | £43,000 | £96,000 |
Facility B has a lower percentage but £53,000 more illustrative headroom because more debt qualifies and the separate reserve is smaller. Actual settlement, accrued charges, transfer costs and reserve treatment must be checked. This snapshot does not compare annual cost or prove B is the better facility.
Three legitimate outcomes after a review
- Stay: the current arrangement remains suitable, including its service and total cost.
- Renegotiate: discuss specific constraints or terms with the existing provider; changes are not guaranteed.
- Explore switching: assess a replacement against the same ledger, costs, protection and obligations.
If replacement funding is appropriate, coordinate settlement, security releases and collection changes. Do not terminate the current facility prematurely: check notice and exit provisions and obtain suitable replacement arrangements first. Our switching guide explains the transfer mechanics.
UK Finance’s Inter-Member Transfer Process normally applies between its IF/ABL members. It is a cooperative invoice-finance transfer process, separate from the Current Account Switch Guarantee; it does not waive your contract or guarantee new funding. Read UK Finance’s transfer guidance.
Information to prepare and what happens next
Start with the current facility size, provider, turnover, main concern and renewal timing. A detailed review may need the agreement, fee schedule, recent statements, aged debtors, customer concentration, eligible-debt rules, existing security and recent financial information.
Use the existing enquiry journey for business-level information. NBS reviews the requirement, clarifies the evidence and assesses suitable lender or specialist partner routes. Share sensitive facility documents only through an agreed secure document process; do not put account credentials or confidential customer documents into public notes.
Your questions, answered
Does requesting a review oblige me to switch?
No. Keeping a suitable current facility or discussing changes with the current provider are valid outcomes. An enquiry does not commit you to new finance.
Will my existing provider be notified?
An initial discussion and a formal transfer are different stages. Clarify with NBS what information will be shared and with whom before provider contact; a transfer requires coordination with the outgoing provider.
Can I leave before the notice period ends?
Your agreement governs notice, minimum term and early termination charges. Review those provisions and any agreed release with the existing provider before committing to a move.
Could a review increase funding availability?
Possibly, if different eligibility rules, reserves or debtor limits suit the ledger and a provider accepts the risk. A higher advance percentage alone does not establish more usable cash.
What happens to debtor protection?
Compare covered debtors, limits, exclusions, excesses and claims conditions. Do not assume protection transfers unchanged or that every unpaid invoice is covered.
What does a review cost?
Confirm the scope and any applicable charges with NBS. Compare all provider costs, including any review, audit, legal, transfer or exit charges, before proceeding.
How long does a review or switch take?
This depends on document availability, underwriting, notice, settlement and security. A timetable can be discussed once the actual arrangement is understood; there is no universal completion time.
Related funding guidance
Content reviewed 14 October 2026. Examples are illustrative; provider terms and regulatory requirements must be checked for the actual proposal.
Request a Facility Review
Start with your business requirement, approximate amount and timing. NBS reviews the information and assesses suitable starting routes through lenders and specialist partners. Any offer is subject to the provider’s assessment and terms.
An enquiry does not commit you to accepting finance. Read the privacy notice and sharing authorisation in the enquiry before submitting.