Question 1

What can I do when customers are paying late?

Accepted Answer

When customers pay late, it can quickly put pressure on your cashflow and disrupt day-to-day operations. There are a few practical steps that can help you regain control. Clear payment terms and accurate, timely invoicing can help set expectations from the start. If payment becomes overdue, acting quickly and keeping communication professional and consistent will help keep the outstanding payment visible and on their radar.

If late payments are becoming a pattern, consider offering alternative payment plans or reviewing the credit terms you provide. For some businesses, the most effective fix is to reduce reliance on customer payment timings altogether by using Invoice Finance. It releases cash tied up in unpaid invoices, giving you the working capital you need while we handle the wait for payment.

Question 2

Which funding option is right for my business?

Accepted Answer

The right option depends on how your business operates and what you need funding to support. If you want help managing customer payments as well as access to working capital, Factoring may be a good fit. If you prefer to keep control of customer relationships and collections in‑house, Invoice Discounting could be more suitable.

Some businesses need more tailored support. Those that trade internationally might benefit from Export Finance, while construction and contract‑based businesses often need funding that works around staged or milestone‑based billing.

If protecting your cashflow from customer insolvency is a priority, adding Bad Debt Protection can provide extra reassurance. Each option is designed to solve different challenges, so the right choice comes down to your sector, how you invoice and the level of support you want.

Question 3

What is Bad Debt?

Accepted Answer

Bad debt is an unpaid invoice that you’re unable to collect, usually because a customer can’t pay or has become insolvent. When this happens, the money you were expecting no longer comes in, which can put pressure on your cashflow and make it harder to manage day‑to‑day costs.

Even a small number of bad debts can have a big impact on a growing business. That’s why lots of businesses look for ways to reduce the risk, especially when a large proportion of their income depends on a few key customers.

Question 4

What is Bad Debt Protection and how does it work?

Accepted Answer

Bad Debt Protection is an optional feature that can be added to your Invoice Finance facility. It helps protect your business if a customer is unable to pay due to insolvency, by covering a significant portion of the loss.

You can choose which customers you want to protect, and we manage the credit checks and administration for you. This gives you greater certainty over your cashflow and helps you plan with confidence, even when unexpected issues arise.

Question 5

What is Invoice Finance and how does it work?

Accepted Answer

Invoice Finance allows you to turn unpaid invoices into available cash without waiting for customers to settle their accounts. Once your facility is set up, you simply upload your invoices and receive a large percentage of their value (up to 95%), often within 24 hours. When your customer pays their invoice, the remaining balance is passed to you, minus an agreed fee.

There are two main types of Invoice Finance. With Factoring, we manage credit control and collect payment from your customers on your behalf. With Invoice Discounting you stay in control of your sales ledger and your customers are not aware of our involvement. Both options are designed to improve cashflow and give your business the freedom to plan ahead with confidence.

Question 6

What is the difference between Invoice Discounting and Invoice Finance?

Accepted Answer

Invoice Factoring and Invoice Discounting are both types of invoice finance that help you unlock cash tied up in unpaid invoices. The key difference is who manages your sales ledger and chases payment from customers.

With Invoice Factoring, you raise invoices as normal and your provider advances a percentage of their value. Your customers continue to pay their invoices, but the factoring provider takes care of credit control and collections on your behalf. This can free up time and resource, allowing you to focus on running and growing your business.

With Invoice Discounting, you also receive an advance against your invoices but the difference is that you remain responsible for managing your sales ledger and chasing payment from customers.

Both options help improve cashflow without taking on traditional debt and can flex as your business grows. Invoice Factoring is often better suited to businesses that want support with credit control, while Invoice Discounting tends to suit businesses with established finance teams who prefer to manage customer relationships themselves.

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