Businesses that have done the work and are waiting to be paid.
Invoice finance is used across a wide range of UK sectors, but it is not for everyone. This page sets out the situations it tends to suit, the sectors where it is well established, and the signs that it may not be the right answer.
Illustrative only. Every facility is priced and structured by the provider.
Assessed business by business
Not by sector alone
Is invoice finance suitable for my business?
These are indicators, not rules. Providers make their own assessments and some specialise in situations others avoid. But they will give you a fair sense of where you stand.
Signs it may suit you
- You sell to other businesses or public sector bodies on credit terms
- Invoices are raised once goods are delivered or work is complete
- Your customers are established and generally pay, even if slowly
- Your sales ledger is reasonably well kept and reconciled
- Cash flow, rather than profitability, is the constraint on the business
- You expect to keep invoicing at a similar or growing level
Signs it may not be the answer
- Most of your sales are to consumers rather than businesses
- You invoice in advance, or in stages before work is complete
- A single customer represents nearly all of your turnover and is financially weak
- Invoices are frequently disputed or subject to retentions and contra-charges
- The need is really for long-term capital rather than working capital
If several of these apply, invoice finance may still be possible with a specialist provider, or another form of funding may be more appropriate. We will say which.
The situations we see most often
Customers pay on long terms
You invoice on 30, 60 or 90-day terms, and larger customers often stretch beyond that. The work is done long before the cash arrives.
Sales are growing faster than cash flow
More orders mean more stock, staff and supplier bills to fund upfront. Growth becomes a cash-flow problem rather than a celebration.
Seasonal peaks and troughs
Busy periods need working capital before the revenue from them is collected. Quiet periods still have fixed costs.
A few very large invoices
When a small number of customers account for most of your turnover, one slow payment can affect the whole business.
Payroll and recruitment commitments
Temporary staff, contractors and new hires need paying weekly or monthly, regardless of when clients settle their invoices.
An existing facility no longer fits
Your current invoice finance arrangement may have been right once, but fees, service or structure may no longer suit the business.
Where the business is in its journey matters
Growing businesses
Winning larger contracts and new customers usually means longer payment terms and higher upfront costs. Invoice finance can let the funding available grow in step with sales rather than lagging behind them.
Businesses under seasonal or contract-driven pressure
Peaks in activity need working capital before the revenue from them arrives. A facility linked to the ledger flexes with those peaks rather than being fixed at last year's level.
Businesses replacing an existing facility
If your current invoice finance arrangement has become expensive, restrictive or poorly serviced, we can review it against the wider market and help manage a switch if one is warranted.
Request a free facility reviewBusinesses new to invoice finance
If you have never used it before, the terminology can be off-putting. We explain it plainly, help you understand the commitment involved and tell you honestly whether it is worth pursuing.
Start with the basicsWhere invoice finance is well established
Inclusion here does not mean every business in the sector qualifies, and being outside these sectors does not rule you out. Suitability is assessed business by business.
Recruitment & Staffing
Weekly payroll for temporary staff against clients paying on 30 to 60-day terms.
See how we helpManufacturing
Raw materials and production costs paid long before finished goods are invoiced and settled.
See how we helpTransport & Logistics
Fuel, drivers and vehicles paid weekly; customers paying in 30 to 60 days.
See how we helpWholesale & Distribution
Stock bought upfront, sold on credit terms to trade customers.
See how we helpEngineering & Fabrication
Skilled labour and materials invested in jobs before invoices are raised and paid.
See how we helpBusiness & Professional Services
Consultancies, agencies and service providers invoicing monthly in arrears.
See how we helpSecurity & Facilities
Staff-heavy operations with regular payroll and contracted clients on monthly terms.
See how we helpPrinting & Packaging
Material and production costs on each job, with customers paying on standard trade terms.
See how we helpConstruction-related Services
Subcontractors and suppliers to the construction sector, where terms and applications vary.
See how we helpNot sure where your business fits?
Tell us about your customers, your invoicing and where the pressure sits. We will give you an honest view of whether invoice finance is worth pursuing.