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INVOICE FINANCE

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 £1.6 billion in funding to more than 43,000 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

Applying for invoice finance through Tide is simple - we'll find a lender tailored to your business, and we only need a few details from you.

  1. Tell us how much you need to borrow We’ll ask you how much you need, what it’s for, and for some basic information about your business.

  2. Compare finance options without impacting your credit score We’ll connect you to the largest network of lenders in the UK, so you can view affordable credit options that suit the unique needs of your business.

  3. Apply in minutes Offers can be made within 24 hours of submitting your application.

  4. Get a decision and receive your money Once approved, businesses can receive funding within 24 hours.

 Apply now

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.

What is invoice finance?

Invoice finance is a funding product that allows you to free up the cash tied up in any outstanding invoices, by using them as security.

Instead of waiting for your customers to pay, you can assign your unpaid invoices to an invoice finance provider. This way you’re able to access a percentage of the money owed to you straight away, instead of waiting the full payment term.

Invoice financing can cover up to 90% of your unpaid invoices, and the money can be available in as little as 24 hours.

Types of invoice financing

There are multiple types of invoice financing that you should be aware of, to understand which type best suits your needs.

📃 Invoice factoring

  • You assign your invoices to a finance provider

  • The provider takes on all responsibility for collecting payments from your customers

  • Your customers will be aware that a third party is now involved in handling their payments

💡 Ideal if you want to outsource your credit control and maintain a steady cash flow

📃 Invoice discounting

  • Your unpaid invoices are used as collateral to secure a loan or advance from a lender

  • You remain responsible for collecting payments from your customers

  • Your customers won’t be aware that you are using an invoice finance arrangement

💡 Ideal if you want to maintain direct relationships with your customers

📃 Selective invoice finance

  • You have the option to choose which invoices you want to finance, rather than all of them

  • You have more flexibility if you need a one-off capital injection or an advance on large invoices

  • There’s no long-term commitment required

💡 Ideal for the odd cash boost or if you’re testing the waters with invoice loans

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.

Business loans

Get funding for larger business investments or long-term growth.

Explore business loans

Business credit cards

Manage cash flow, earn rewards and build your business credit score.

Explore credit cards

Asset finance

Pick up essential equipment or vehicles without upfront capital.

Explore asset finance

Merchant cash advance (MCA)

Access flexible funding that you’ll repay as a percentage of your daily card sales.

Explore MCA

How to track your business credit score

Are you wanting to improve your business credit score?

Credit Score Insights is a simple and affordable way to help you understand, track and take action to help you boost your business credit score.

 Track your credit score

Learn more about financing your business

Explore more funding guides
Explore more funding guides

Invoice finance FAQs

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.

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.

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.

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We understand businesses, it's all we do

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