If customers pay on 30–90 day terms, invoice or debtor finance can bring forward part of the cash already owed to your business.
A B2B supplier was growing faster than customer payment terms allowed. We structured the receivables and debtor profile for an invoice financier, releasing working capital without waiting for customer accounts to clear.
Invoice finance uses eligible receivables as the funding base rather than waiting for every customer to pay.
Bring forward cash to keep the supply chain moving.
Reduce the mismatch between wages and customer payment terms.
A receivables-linked facility can scale as eligible invoicing grows.
The key question is whether your funding need naturally grows with invoices.
| Invoice finance | Term loan |
|---|---|
| Funding is linked to eligible receivables | Fixed loan amount at settlement |
| Can grow as invoices grow | Usually requires a new approval to increase |
| Often does not require property security | Security varies by lender |
| Cost is tied to facility and usage structure | Interest is charged on the loan balance |
Invoice finance allows a business to access funding against eligible unpaid customer invoices instead of waiting for the normal payment term.
That depends on the product. Some invoice-discounting structures can be confidential, while factoring or disclosed facilities involve customer notification or collections.
Receivables are the primary funding base for many invoice-finance facilities, so property security may not be required. Lender terms vary.
Start with the amount, purpose and business profile.