Manchester 0161 980 0577
London 020 3301 4540

Invoice Factoring


Key features


Invoice factoring facilities provide finance against unpaid invoices with the additional advantage of a full collections service.  Factoring provides a working capital facility that grows with your business but also provides a credit control function as the factoring company collects unpaid invoices on your behalf.

Invoice Factoring is very straight forward.   You deliver goods or services to your client and notify the factoring company of the work performed providing a copy of the raised invoice.  The factoring company will immediately advance you the pre-agreed percentage value, typically 70-90% of the invoice (although some factoring companies advance 100%). Once the invoice is paid by your customer, charges are deducted, and the factoring company pays you any remaining balance of the invoice value.

There are two headline charges associated with invoice factoring facilities and some secondary costs which should be studied in the small print.  Firstly, the interest element for the actual amount of money borrowed. This is typically vary similar to interest rate charged by a bank for an overdraft however it does vary from finance company to finance company

The second element is the cost of providing and administering the factoring facility and for the provision of the credit control. This charge is usually a percentage of the annual turnover although for businesses with smaller turnover it is possible to get this for a nominal monthly fixed fee.

There are also different options to consider when choosing the right factoring facility for you;

Confidential factoring is a flexible funding solution for businesses which offers the cash advance and credit control aspects of a factoring facility combined with the confidentiality of invoice discounting, so the factoring company approaches your customer using your company name.

Non-recourse factoring is where the factor takes on the bad debt risk. It accepts specified risks around the debtor’s failure to pay and because of this, non-recourse factoring will be more expensive than recourse factoring.

Single Debtor and Single invoice finance is also available.

Any business providing goods or services to other businesses on credit may be eligible to apply for a factoring facility.

For further information and advice, contact us today.

How we have helped our clients

Spread the cost of your Tax bills

You can spread the cost of your HMRC Self-Assessment tax bill, Corporation Tax or VAT bills using a easy to arrange solution that will ease any pressure on your cashflow.

Can secure more orders but need to hold more stock.

A client that we have funded vehicles before approached us for a term loan to buy more stock. They are a re seller of mattresses. They have an opportunity to

Read more case studies
We Love A Challenge

Other products to consider

Invoice FinanceInvoice Finance

  • Speeds up working capital cycle.
  • Optional bad debt protection.
  • Improves cash flow.
  • Grows with your business.

bad debt protectionBad Debt Protection

  • Protect business when customers don't pay.
  • No more late payment or bad debt worries.
  • Protect your cash flow.
  • You decide which customers to cover.

single invoice factoringSingle Invoice Factoring

  • Plugs temporary cash flow gaps.
  • Fast access to cash.
  • No fixed contracts.
  • Reduced funding costs.

construction invoice financing

Construction Invoice Finance

  • Specialist finance for the construction industry.
  • Pay an urgent debt.
  • Can be confidential.
  • Improves cash flow and saves time.


Sovereign House,
Stockport Road,
Cheshire SK8 2EA

How to make a complaint | Privacy Policy

0161 980 0577

020 3301 4540

XL Business Finance Limited are authorised and regulated by the Financial Conduct Authority FRN 718737

Get A Quote

Get in touch by filling in the form below. One of our finance experts will get back to you as soon as possible.

    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.