Invoice Finance
What is Invoice Finance?
Invoice Finance is a form of working capital finance that allows businesses to receive funding against outstanding customer invoices. It provides more immediate access to up to 85% of the invoice value, usually within 24 hours of setting up the facility. It bridges the cash flow gap between invoicing and receiving payment, using your sales ledger as collateral.
Invoice Finance is a popular form of working capital finance in the UK, as it allows you release money that you have already earned for more immediate use in your business. Making more efficient use of your own money avoids taking on the additional debt that you would with other finance solutions, such as a business loan.
Our twice yearly SME Confidence Tracker research of 1000 SMEs consistently shows cashflow is a key challenge for around 25% of businesses. Our most recent survey revealed that around two thirds of small and medium sized businesses are experiencing customers taking longer to pay invoices and with the average amount outstanding to them around £67,000.
Invoice Finance offers a number of benefits and can deliver improvements to day to day cashflow and support business growth through providing the finance needed to invest in people, materials, marketing and technology needed to develop your business. It can also be a beneficial form of finance for managing business change, such as a management buy out or acquisition.
Invoice Finance explained
Watch our video for an overview of what Invoice Finance is and how it works.
Three reasons to use Invoice Finance
Access your cash within 24 hours of set up
Don't wait for customers to pay. Make efficient use of money you have already earned more quickly with Invoice Finance.
Funding that grows with your business
Almost two thirds of SMEs expect sales to increase in the next 12 months. Invoice Finance is a flexible funding solution that grows with your business.
Avoid taking on additional debt
Invoice Finance releases funds tied up in unpaid invoices - money already earned. This avoids the need to take on additional debt, required with other forms of financing.
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Growing a business with Invoice Finance
Client story: FORT Builders' Merchants
Invoice Finance allows FORT Builders' Merchants to bridge the gap between customer invoices and supplier payments. This gives them the ability to invest and build for the future with a flexible funding line.
Invoice Finance considerations for my business. What if...
...I need help with credit control?
If you would rather focus your team more on keeping your business moving and less on collecting customer payments, Factoring could be the right solution for you. Our dedicated credit control team collect your outstanding invoices, freeing up your time to concentrate on running your business.
...I want to manage customer payments myself?
If you choose Invoice Discounting you’ll benefit from your cash in advance of customers paying but you’ll maintain responsibility for collecting customer payments. Your use of Invoice Finance will be kept completely confidential from your customers.
...I get paid in stages?
We have specialist finance solutions to support businesses that work on a contractual basis. This type of financing works well for industries like construction where contracts are often long and invoiced in stages. We have provided specialist finance for construction for over twenty years.
...I have customers that can't pay?
Our Q1 survey of 1000 SMEs revealed 30% had experienced bad debt in the previous year, an increase since our last survey.
Many businesses that use Invoice Finance also choose our Bad Debt Protection which protects against the impact of non payment.
...I have customers overseas?
Depending on how much you trade overseas, our specialist Export Finance solution could be a suitable option. Our Foreign Exchange services can also help you trade more efficiently with competitive rates for immediate or future trading needs. You can make overseas payments from your Invoice Finance facility or standalone.
...I need to pay contract staff?
Our Recruitment Finance solution is perfect if you supply contract staff and want to minimise the gap between paying them and receiving payment from your clients. It can also support growing your own workforce to win new contracts.
There is also an option to receive payroll support as part of your facility.
Why choose Bibby Financial Services?
Flexible
As a family-owned business, our independence and experience enables a tailored approach. Often, when others say no, we say now!
Relationship focused
We believe business is personal. We get to know our clients and understand their needs. You’ll know who in the team to call, not just a number.
Trusted
We have over 8,500 clients worldwide and are rated Excellent on Trustpilot. We are members of a number of financial associations including UK Finance, reflective of our commitment to high standards and best practice. We’ve been supporting SMEs for over 40 years
Award-winning
As the UK's leading independent specialist Invoice Finance provider, we have been recognised with a number of awards. Most recently, in April we were awarded "Best Factoring and Invoice Discounting Provider" by Business Moneyfacts for the second year running, reinforcing our dedication to providing the best experience for our customers.
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How we have helped other businesses
We’ve been supporting businesses for over 40 years across a wide range of business sectors…
£2 million funding provided
We provided a £2 million Confidential Invoice Discounting facility to support the growth aspirations of Midlands-based logistics business, which was subject to an MBO in 2022. Our client chose to work with us due to our expertise within the logistics industry and our ability to fund contractual debt.
- Industry sector:
- Transport & logistics
- Solution:
- Confidential Invoice Discounting
£650k funding provided
We supported a leading packaging solution manufacturer with a £650,000 Factoring facility. This provided them with the crucial funding they needed to maintain and grow their operations after their existing lender no longer wanted to offer them a facility.
- Industry sector:
- Manufacturing
- Solution:
- Invoice Factoring
£500k funding provided
We funded a specialist electrical and mechanical engineering business with a £500,000 Confidential Construction Finance facility to support working capital and growth aspirations. Our client chose to work with us because of our specialist knowledge and experience within the sector, and our ability to fund various types of contracts for a variety of end customers.
- Industry sector:
- Construction
- Solution:
- Construction Finance
£100k funding provided
We supported a specialist automotive employment agency with a £100,000 Recruitment Finance facility to help them move from their current provider and support their future growth. Our facility provides increased flexibility of funding, with a full back-office solution including software that enables them to monitor and manage their candidates.
- Industry sector:
- Recruitment
- Solution:
- Recruitment Finance
£4.5m funding provided
We supported a leading, family-run manufacturer with a £4.5 million Confidential Invoice Discounting facility. The funding we provided gave the business the additional cash and headroom it needed to facilitate its exponential growth.
- Industry sector:
- Manufacturing
- Solution:
- Invoice Discounting
£150k funding provided
We supported a wholesaler of plumbing and heating supplies with a £150,000 Confidential Factoring facility. As a new business, our funding will enable them to grow organically when their bank was unable to help due to their infancy.
- Industry sector:
- Wholesale
- Solution:
- Invoice Factoring
What our clients say...
Frequently asked questions
We have compiled a list of questions that we hear most often from business owners and financial decision makers considering Invoice Finance