You've done the work and sent the invoice. Now you wait 30, 60, sometimes 90 days - while suppliers and staff still need paying. Invoice finance turns that invoice into cash within 24-48 hours.
Invoice finance is not a single product. There are three main structures, each suited to a different business type, volume level and preferred level of involvement with your debtor ledger.
A lender advances a percentage of your invoices immediately and manages collections directly with your customers - typically disclosed. Ideal if you want predictable cash and to outsource collections entirely.
Advances funds against your invoices while you keep full control of collections and customer relationships - completely confidential, and suited to established businesses with strong credit management.
Fund individual invoices on demand, with no ongoing commitment. The most flexible option - ideal for occasional cash flow needs or a single large invoice you need to move on quickly.
Invoice finance suits any B2B business that invoices customers on payment terms and has a reliable, creditworthy customer base. Some industries use it more than others - because their payment gaps are structural, not accidental.
Progress claims and drawn-out payment cycles leave construction businesses carrying real cash flow gaps. Invoice finance unlocks cash against approved claims - without waiting on principals to process payment.
Fuel, wages and vehicle repayments are due daily, while customers pay in 30 to 60 days. Invoice finance bridges that gap between completed jobs and received payment.
Payroll runs weekly, well ahead of monthly client billing - a structural gap, not an accidental one. It's one of the most common uses of invoice finance.
Raw materials are paid for before goods are produced, delivered and invoiced. Invoice finance supports cash flow across that cycle without tying up property as security.
Project billing, milestones and long payment terms are common across consulting, IT and engineering. Invoice finance turns completed work into cash - so practices can take on more.
Tell us about your business, your invoice volumes, your customer base and the approximate value of outstanding invoices. Takes minutes, no obligation, no credit check to enquire.
We review your debtor profile, trading history, invoice nature and customer quality, then identify the most appropriate product structure and lenders for your specific situation.
We send a secure SMS upload link so you can provide documents directly from your phone - no email chains, no sensitive documents sent through unsecured channels.
We prepare your application properly and submit to the most appropriate lender. A well-structured submission with complete documentation moves through assessment significantly faster.
Subject to lender assessment, your invoice finance facility is established. You can begin drawing against eligible invoices - typically within 24 to 48 hours of an invoice being submitted.
Factoring, discounting and selective finance all suit different ledgers and preferences. We build a picture of your invoices, your debtors and your industry first - then match you to the structure and lender that fits.
Different ledgers and preferences call for different structures. Here's how each one solves a real cash flow gap.
A growing labour-hire business with a small admin team
Situation
A labour-hire business pays staff weekly but invoices clients monthly - chasing payment was eating into admin time.
What's needed
Cash against the ledger as invoices are raised, plus someone else managing collections.
How Loan-o helps
We match the business to a factoring lender that advances funds and runs collections - freeing up the team.
An established wholesaler that wants to keep collections in-house
Situation
An established wholesaler has strong credit control but ties up cash waiting on 60-day customer terms.
What's needed
Funding against the ledger without customers knowing - and without handing over collections.
How Loan-o helps
We identify a confidential discounting facility that suits their credit management and debtor quality.
One large invoice, one time-sensitive opportunity
Situation
A business has one large invoice on 60-day terms - and a time-sensitive opportunity that needs funding now.
What's needed
Cash against that single invoice, without committing the whole ledger or an ongoing facility.
How Loan-o helps
We match the business to a lender offering selective invoice finance for exactly this situation.
Invoice finance is a funding arrangement that allows businesses to access the cash tied up in unpaid invoices before customers settle their accounts. Rather than waiting 30, 60 or 90 days for payment terms to run their course, the business receives an advance from a specialist lender against the value of outstanding invoices. The balance is released once the customer pays, less the lender's fees.
Invoice factoring involves a lender purchasing your debtor ledger and managing collections directly from your customers - the arrangement is typically disclosed. Invoice discounting also advances funds against outstanding invoices, but you retain full control of your own collections and the arrangement is usually confidential. Discounting generally has more stringent eligibility requirements and suits more established businesses with strong internal credit management.
Selective invoice finance - also called spot factoring - allows you to fund individual invoices rather than committing your entire ledger. There is no ongoing commitment required. You choose which invoices to advance against as your cash flow needs arise. It is typically more expensive per invoice than whole-of-ledger facilities but offers the greatest flexibility and suits businesses with occasional rather than ongoing needs.
Invoice finance typically does not require real property as security. The invoices themselves - and the quality of the debtors behind them - act as the primary asset securing the facility. This makes it accessible for businesses with strong revenue and reliable B2B customers but limited real estate to offer as collateral. Some lenders may still require a personal guarantee from directors.
It depends on the product. With factoring, customers are typically notified and directed to pay the lender directly. With discounting, the arrangement is confidential and customers continue to pay you as normal. Loan-o will explain clearly what each option means for your customer relationships before you make any decision - there are no surprises.
Once a facility is established, drawdowns against eligible invoices can generally be processed within 24 to 48 hours of submitting the invoice. The time to establish the facility initially varies by lender and application complexity - but a well-prepared submission moves significantly faster than one that arrives incomplete.
Invoice finance is used across any B2B sector where businesses invoice customers on payment terms. It is particularly prevalent in construction, transport and logistics, recruitment and labour hire, manufacturing, wholesale distribution and professional services - industries where payment delays are structurally built into how the sector operates, not a sign of a problem.
Yes, depending on your invoice volumes and debtor quality. Selective invoice finance in particular is well suited to smaller businesses that don't need a full facility but want the ability to fund individual invoices when cash flow demands it. Loan-o will tell you honestly whether an invoice finance facility makes commercial sense for your situation - and what the real costs look like.
If slow-paying customers are limiting what your business can do next, invoice finance may be the most direct solution available. Tell us about your invoicing situation and we will identify what may be available for your business.