Invoice Factoring
Unlock cash tied up in your invoices
Invoice finance is a short-term funding solution that allows businesses to release working capital from unpaid invoices. Instead of waiting 30, 60, or even 90 days for customers to pay, a finance provider advances a percentage of the invoice value (typically up to 85–90%) within 24 to 48 hours.
Once the customer pays, the provider deducts their fee and returns the remaining balance to the business. This creates immediate liquidity, strengthens cash flow, and provides the flexibility to manage operations or invest in growth.
At Kingswell Partners, we provide you with access to an extensive network of lenders and thoroughly explore the entire market to secure the ideal facility for your business. From application through to funding, we manage the process end-to-end, so you can remain focused on running your business.
What is Invoice Finance?
Invoice finance allows you to unlock the value of money owed to your business by advancing a percentage of your outstanding invoices. It is commonly used by B2B companies across goods and services sectors where delayed payment terms can strain cash flow.
There are two core facilities, invoice factoring and invoice discounting, but providers may also offer selective invoice discounting, spot factoring, or accounts receivable financing, depending on business needs.
How does invoice finance work?
Issue an Invoice
You provide goods or services and issue an invoice to your custome
Submit Invoice to Lender
The invoice is submitted to the finance provider.
Receive Advanced
Within 24–48 hours, a percentage of the invoice value (typically 85–90%) is advanced.
Lender Collects Payment
Depending on the facility, either you chase the customer for payment or the provider does this on your behalf.
Remaining Balance Release
When the customer pays, you receive the remaining balance minus the service fee.
Service fees generally range between 0.75% and 2.5%, covering management, collections, and administration costs. Interest is only charged on the amount borrowed, keeping the facility flexible and scalable.
Invoice discounting vs invoice factoring
Invoice discounting
You retain control of your sales ledger, managing customer relationships and collections yourself. Customers remain unaware of the arrangement, making it a confidential facility.
Invoice factoring
The provider manages your sales ledger and credit control directly, contacting customers for payment. This is more visible but removes the administrative burden from your business.
The right option depends on your preference for confidentiality versus outsourcing collections. Discounting suits businesses with robust credit control, while factoring can be ideal if you want a hands-off solution.
Advantages of Invoice Finance
Immediate access to up to 95% of invoice value
Stronger cash flow and reduced debtor days
Flexibility—use across the whole business or for selected invoices
Confidentiality (discounting) or outsource collections
Scales in line with your sales growth
Key Considerations
This type of finance can be a strong option if:
- Invoice Factoring → provider manages collections, customers are aware
- Invoice Discounting → you retain control, customers remain unaware
- Credit Score → factoring may be more accessible for businesses with weaker credit histories
- Reputation → discounting maintains confidentiality and client perception
At Kingswell Partners, invoice finance is more than a facility – it’s a way to gain agility, improve liquidity, and position your business for growth. With our curated lender network and expert guidance, you gain the advantage of access to facilities designed around your needs.