INVOICE FINANCE

Q: Is invoice finance the same as accounts receivable finance?

Yes, invoice financing and accounts receivable financing are the same, and can also be referred to as receivables financing. ‘Accounts receivable’ is a term to describe all money due to the company.

Q: Will my customers know I am using invoice financing?

If you choose invoice factoring, the provider will manage credit control and contact your customers on your behalf to ensure timely payment. Invoice discounting, on the other hand, is confidential and allows you to remain in control of these relationships.

Q: What are the costs associated with invoice finance?

Invoice finance agreements will be priced based on your business and requirements, however invoice discounting and invoice factoring have different fee structures. Invoice discounting is structured like a loan, with interest payable plus an administration fee. Invoice factoring charges are known as a ‘factor rate’, which is based on level of risk, volume of invoices, and the time credit is extended for, amongst other factors.

Release cash tied up in unpaid invoices with invoice finance

If unpaid invoices are tying up your cash flow, invoice financing could be the solution you need to keep your business moving.

Receive up to 95% of the invoice value

Once your application is approved, credit is often accessible within 24 hours

Check your eligibility in minutes, without affecting your credit score

Get started

Already a Tide member? You can apply for an invoice finance facility and other finance directly within the Tide app.

Tide has joined forces with Funding Options, becoming the largest credit marketplace in the UK.

Providing over £1.1 billion in funding to more than 19,000 UK businesses, we’re on a mission to help business owners grow with confidence.

How does invoice finance work?

Invoice clients

Once you’ve completed the work, invoice your client as usual and include the usual payment terms, eg 30-90 days.

Submit invoices

Once you’ve set up your invoice finance facility, you’ll need to submit copies of your invoices to the provider. They’ll effectively ‘buy’ the debt that is owed by your customer.

Receive funding

The invoice finance company advances you the payment – up to 95% of the value of the invoices, sometimes within as little as 24 hours.

Customer pays the invoice

Your clients pay their invoices, usually into the invoice finance company’s account, as per the original terms.

Receive final balance

The invoice finance company provides you with the remaining balance, minus their fees.

How could invoice finance benefit your business?

Improved cash flow

It can improve your business's cash flow, as it allows quick, flexible funding that scales with your business.

Reduced admin

With factoring, the finance company takes on credit control, freeing up your time to focus on your business.

Peace of mind

Have the freedom and confidence you need to win those larger contracts knowing your cash flow is covered.

Apply now

Are you eligible for invoice finance?

Your eligibility for invoice finance depends on a few factors. But to get any kind of financing from Tide, you must:

Be over 18

Be a UK resident

Have a UK-based business

Have a UK bank account

Trade business-to-business

You may also have to show account records or prove a minimum monthly revenue.

Invoice finance providers will review your business credit history, and some may check your personal credit history.

How to apply for invoice finance with Tide

Aaron MoOng Ong Buns

With the help of Tide and their team of business finance experts, I was able to navigate the complexities of business finance, and secure the necessary funds to grow my business.

Get funding today

Types of invoice financing

📃 Invoice factoring

📃 Invoice discounting

📃 Selective invoice finance

Alternatives to invoice financing

Whether your equipment needs an upgrade or you’re after more flexible funding for wider projects, we have options for you.

INVOICE FINANCE

Release cash tied up in unpaid invoices with invoice finance

Tide has joined forces with Funding Options, becoming the largest credit marketplace in the UK.

How does invoice finance work?

Invoice clients

Submit invoices

Receive funding

Customer pays the invoice

Receive final balance

How could invoice finance benefit your business?

Improved cash flow

Reduced admin

Peace of mind

Are you eligible for invoice finance?

How to apply for invoice finance with Tide

With the help of Tide and their team of business finance experts, I was able to navigate the complexities of business finance, and secure the necessary funds to grow my business.

Types of invoice financing

📃 Invoice factoring

📃 Invoice discounting

📃 Selective invoice finance

Alternatives to invoice financing

Business loans

Business credit cards

Asset finance

Merchant cash advance (MCA)

Learn more about financing your business

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Operating lease vs finance lease explained

Purchasing a car through a limited company

Buying property through a limited company

A business line of credit vs a business overdraft

Invoice finance FAQs

Is invoice finance the same as accounts receivable finance?

Will my customers know I am using invoice financing?

What are the costs associated with invoice finance?