What is the difference between factoring and discounting?

With factoring, the provider manages your sales ledger and collects payments from your customers. With invoice discounting, your company keeps control of collections and customers usually don't know a provider is involved. Discounting tends to suit more established businesses.

How much of my invoice value can I access?

Providers advance a percentage of each invoice's value and pay the balance, minus their fees, when your customer pays. The exact amount depends on the provider and your company's circumstances.

What are the costs of invoice finance?

Costs usually include a service fee and a charge on the funds you draw. Your broker will confirm the full cost in writing before you commit.

Is invoice finance suitable for all businesses?

Invoice finance usually suits companies that sell to other businesses on credit terms. It isn't suitable for retail or cash businesses.

Does invoice finance affect my customer relationships?

With invoice discounting, customers usually don't know about the arrangement. With factoring, the provider contacts your customers to collect payments.

Who is this service for?

UK limited companies, LLPs and PLCs only. It isn't available to sole traders, partnerships or individuals.

Invoice Finance for UK Limited Companies

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What?

What is invoice finance?

Invoice finance lets your company borrow against unpaid invoices, so you can access part of their value before your customers pay. The rest, minus the provider's fees, is paid to you when your customer settles.

Why?

Why use a commercial finance broker?

Invoice finance providers differ in their fees, how much they advance and how they work. Compare Commercial doesn't compare providers or give advice. We pass your enquiry to one FCA-authorised commercial finance broker, who can explain the options, such as factoring or invoice discounting, and look for a facility that suits your company.

How?

How to get matched with an invoice finance broker

Fill in the short form

Tell us your company name, how much you need to borrow and what it's for, then add your contact details. It only takes a couple of minutes.

We pass on your details

We don't compare lenders or give advice. We simply pass your details to one FCA-authorised commercial finance broker, who will call you as soon as possible during business hours.

Talk through your options

The broker will talk you through your company's options. From here you deal with the broker directly, and there's no obligation to go ahead.

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Frequently asked questions

Invoice Finance FAQs

Common questions about invoice factoring and invoice discounting for UK limited companies.

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