Get paid now, not in 90 days

Invoice financing - also called invoice finance, accounts receivable financing or AR financing - lets a business turn unpaid invoices it has already issued into cash it can use now. Instead of waiting weeks or months for a customer to settle, you get most of each invoice released quickly, then the balance (less the lender's fee) when the customer pays. It is a practical way to unlock the working capital that is tied up in your sales ledger, so a slow-paying client does not stall payroll, stock orders or your next job.

In its simplest form, you raise an invoice to a creditworthy business customer, the lender advances a large share of its value upfront, and the remainder is released on settlement. Because it is a revolving facility that grows with your sales rather than a one-off lump sum, more funding typically becomes available as you invoice more. It is usually secured against the invoices themselves rather than property or other assets, which is why it can suit businesses that have strong receivables but little to pledge as collateral.

Invoice financing is built for B2B businesses that sell to other companies on credit terms - the longer those terms, the more cash sits waiting. With Capvant you make one request and we match you with vetted third-party lenders who compete for your business. Comparing options is a soft search with no impact on your credit score; a hard check only happens if you choose to accept an offer.

The amount you can access scales with your outstanding invoices rather than a fixed credit limit, so facilities commonly run from a few thousand up to several hundred thousand as your ledger grows. Lenders typically release a large majority of each qualifying invoice as an upfront advance, with the remaining balance paid to you once your customer settles. The exact advance rate varies by lender, by sector and by the strength of the customers who owe you.

Pricing is usually built around a discount or service fee charged on the value advanced, and with full factoring there is often an additional charge for managing credit control and collections. Costs tend to move with your invoice volume, the creditworthiness of your customers, and whether the facility is recourse or non-recourse. Rates and fees are always set by the individual lender and quoted on your real numbers, so treat any single quote as a starting point for comparison rather than the market rate.

One advantage worth weighing is flexibility. Because invoice financing revolves with your sales rather than running on a fixed repayment schedule, available funding rises and falls naturally with the work you invoice. Once a facility is set up, funds against new invoices are often available within a short window - useful when cash flow timing, not profitability, is the real pressure.

When you have a few offers in front of you, look past the headline advance rate. The factors that genuinely shape the cost and experience are the total fee structure, whether the facility is recourse or non-recourse, whole-ledger versus selective or single invoice finance, confidential discounting versus disclosed factoring, and the contract length and exit terms. A slightly lower advance with simpler, more flexible terms can easily beat a higher one locked into a long commitment.

Invoice financing tends to fit best when you sell to other businesses on credit, your customers are reliable but slow, and growth or seasonality keeps stretching the gap between doing the work and getting paid. It is a strong tool for steadying cash flow, covering payroll and taking on bigger orders without waiting on settlement. It is usually a poor fit if your customers already pay quickly, if you sell mainly to consumers for immediate payment, or if you have a genuine one-off need rather than a recurring stream of invoices - a line of credit or working-capital option may serve you better there.

If you are weighing it up, the simplest next step is to compare real terms rather than guess. With Capvant, one request puts your enquiry in front of a network of vetted lenders who compete with actual offers, comparing them is a soft search that leaves your credit score untouched, and a hard check only happens if you accept. Every funding decision rests with the lender and is subject to approval.