Not necessarily. Confidential invoice discounting is available where appropriate.
Invoice Finance
Improve cash flow by unlocking the value of your unpaid invoices
Invoice finance helps businesses access cash tied up in unpaid invoices, allowing you to improve cash flow without taking on long-term debt. Instead of waiting weeks or months for customers to pay, invoice finance enables you to release funds as soon as invoices are raised.
At Bothwick Finance, we arrange tailored invoice finance solutions for UK businesses, helping you maintain steady cash flow, meet payment obligations, and support ongoing growth.
What is invoice finance?
Invoice finance is a funding solution that allows businesses to borrow against the value of their outstanding sales invoices. Once you issue an invoice to your customer, a lender advances a percentage of its value, providing immediate access to working capital.
As your customer pays the invoice, the remaining balance is released to you, minus any agreed fees. Because funding is linked to your sales ledger, invoice finance naturally grows in line with your business turnover.
How invoice finance works
The process is designed to be simple and scalable:
1
You raise an invoice
An invoice is issued to your customer in the normal course of business.
2
Funds are advanced
A percentage of the invoice value is released to your business, often within 24 hours.
3
Customer payment
Your customer pays the invoice according to agreed terms.
4
Balance released
Once payment is received, the remaining funds are released to you, minus the lender’s fees.
This structure provides ongoing access to funding rather than a one-off cash injection.
Types of invoice finance
There are different invoice finance structures available, depending on how much involvement you want from the lender.
We will help you decide which option best suits your business model and internal processes.
Invoice factoring
With factoring, the lender manages the collection of payments from your customers. This can reduce administrative workload and provide additional credit control support.
Invoice discounting
Invoice discounting allows you to retain control of your sales ledger and customer relationships. The facility operates confidentially, meaning customers are not aware of the funding arrangement.
Key benefits of invoice finance
Invoice finance offers several advantages over traditional borrowing:
- Improved and predictable cash flow
- Funding that grows alongside your sales
- Reduced reliance on overdrafts or short-term loans
- Faster access to working capital
- Potential support with credit control and collections
Because funding is linked directly to invoices, invoice finance can be a practical solution even where other forms of lending are limited.
Who is invoice finance suitable for?
Invoice finance is commonly used by:
- B2B businesses offering credit terms
- Growing companies with increasing sales
- Businesses managing long customer payment cycles
- Companies seeking flexible working capital
It is particularly effective for businesses where cash flow is constrained by slow-paying customers rather than lack of profitability.
Supporting international and growing businesses
Invoice finance can also support businesses trading internationally. Many facilities allow funding against overseas invoices and include additional services such as:
Why use Bothwick Finance for invoice finance?
Choosing the right invoice finance provider and structure is critical. At Bothwick Finance, we focus on finding solutions that fit your business, not just your balance sheet.
When you work with us, you benefit from:
1
Access to a wide panel of invoice finance lenders
1
Clear explanation of costs and obligations
1
Confidential facilities where required
1
Support through setup and onboarding
1
Ongoing advice as your business evolves
We ensure you understand exactly how the facility works before you proceed.
Frequently asked questions
Invoice finance FAQs
Can applications for payment be used instead of Invoices?
Yes, certain lenders will advance on applications for payment. Typically, the advance rate will be lower, closer to 60%.
How much can I access through invoice finance?
Typically, advance rates range from 60% – 90% depending on the type of business, audit trail and strength of debtor.
Will my customers know I am using invoice finance?
Is invoice finance suitable for small businesses?
Yes. Invoice finance can support businesses of many sizes, particularly those with regular B2B invoicing.
Does invoice finance replace a bank overdraft?
In many cases, invoice finance can reduce or remove the need for an overdraft by providing more scalable funding.
Request a quote
If your business issues invoices and experiences delays in customer payments, invoice finance could help stabilise cash flow and support growth.
Request a quote today and speak to one of our account managers about invoice finance options tailored to your business.
To enquire about any of products or services, please contact us to speak to a member of staff.