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Invoice Finance · Speed & Process

The Invoice Finance 100.
Speed & Process

Focus: Timelines, applications, and the legal process.

22+Questions
100%Expert Answers
FCARegulated
Is invoice factoring suitable for B2B companies?
TL;DR Invoice factoring is often highly suitable for B2B companies struggling with cash flow due to long payment terms. Learn how factoring works, the costs involved, and key suitability factors.
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Do I still own my invoices after factoring them?
TL;DR When you factor invoices, you typically sell the debt, transferring ownership. Understand the key differences between invoice factoring and discounting and how ownership is affected.
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What happens if a client disputes an invoice that’s been factored?
TL;DR If your client disputes a factored invoice, the funder will investigate. Discover the process for resolving disputes, whether you have a recourse or non-recourse agreement, and who bears the financial risk in the UK.
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How does invoice factoring affect customer relationships?
TL;DR Invoice factoring can significantly impact customer relationships depending on whether the arrangement is disclosed or confidential. Learn how to minimise risks, maintain trust, and protect your brand reputation when using factoring services.
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Can factoring companies help with customer disputes?
TL;DR Factoring companies primarily manage invoice finance and collections. Learn whether and how factoring companies can help with customer disputes in recourse and non-recourse agreements.
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Does invoice factoring affect customer loyalty?
TL;DR Explore the impact of invoice factoring on customer relationships and loyalty. Learn how clear communication and choosing the right factoring partner minimise risks to your clients.
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What’s the impact of invoice factoring on repeat business?
TL;DR Explore how invoice factoring affects client relationships and repeat business. Understand the risks related to third-party collection and strategies for maintaining customer loyalty.
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Is invoice factoring suitable for freelancers and contractors?
TL;DR Freelancers and contractors often face cash flow gaps due to late payments. Learn if invoice factoring is a practical and compliant solution for UK self-employed workers.
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What are typical factoring rates in the UK?
TL;DR Understand typical factoring rates in the UK. We break down the costs, including service fees (0.5%–3%) and discounting rates (2%–5% over base rate). Learn how lenders calculate your factoring fees.
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Is invoice factoring suitable for seasonal businesses?
TL;DR Seasonal businesses often face unpredictable cash flow. We explore whether invoice factoring is a practical and flexible solution to manage these peaks and troughs effectively.
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What are the main advantages of invoice factoring?
TL;DR Invoice factoring is a powerful tool for improving business cash flow immediately. Discover the main advantages, including rapid funding, risk protection, and focusing on growth. Understand the costs and who benefits most.
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Is invoice factoring a good choice for small businesses?
TL;DR Invoice factoring can significantly boost cash flow for UK small businesses, but it comes with costs and risks. Learn how factoring works, its advantages, and whether it is the right financial choice for your company.
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How does invoice factoring impact client relationships?
TL;DR Invoice factoring can streamline cash flow but introduces a third party. Learn how this service affects confidentiality, communication, and overall trust with your business clients.
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How does invoice factoring compare to other financing options?
TL;DR Comparing invoice factoring vs. alternatives like overdrafts, loans, and asset finance helps UK businesses choose the right cash flow solution. Understand the costs, risks, and benefits.
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What are the disadvantages of invoice factoring?
TL;DR Invoice factoring provides fast cash but has downsides. Learn about the potential disadvantages, including high fees, loss of customer control, and reputational risk.
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What is the process of invoice factoring?
TL;DR Learn the step-by-step process of invoice factoring, how businesses convert outstanding invoices into immediate working capital, and the associated costs and risks.
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What information is required to apply for invoice factoring?
TL;DR Applying for invoice factoring requires financial statements, company structure details, debtor analysis, and specific invoice documentation. Understand the necessary paperwork and process.
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What steps are involved in applying for invoice factoring?
TL;DR Understanding the invoice factoring application process is crucial. We detail the steps involved, from initial assessment and fee negotiation to setup and funding. Learn how to secure finance.
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Do you need good credit to qualify for invoice factoring?
TL;DR Invoice factoring eligibility primarily hinges on your customers' credit history, not yours. Poor credit may affect rates, but seldom disqualifies you. Learn why.
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What are the different types of invoice factoring?
TL;DR Discover the different types of invoice factoring, including recourse, non-recourse, selective, and whole-turnover options. Understand how these financing methods help UK businesses manage cash flow and the associated costs and risks.
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What is recourse invoice factoring?
TL;DR Learn exactly what recourse invoice factoring is and how this B2B financing solution works in the UK. Understand the risks involved, especially who holds the liability for unpaid invoices.
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What is selective invoice factoring?
TL;DR Learn what selective invoice factoring is, a flexible finance option allowing UK businesses to sell specific outstanding invoices for immediate cash flow. Understand the pros, cons, and costs.
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Promise Money is a broker not a lender. Therefore we offer lenders representing the whole of market for mortgages, secured loans, bridging finance, commercial mortgages and development finance. These loans are secured on property and subject to the borrowers status. We may receive commissions that will vary depending on the lender, product, or other permissable factors. The nature of any commission will be confirmed to you before you proceed.

More than 50% of borrowers receive offers better than our representative examples

The %APR rate you will be offered is dependent on your personal circumstances.

Mortgages and Remortgages

Representative example

Borrow £270,000 over 300 months at 7.1% APRC representative at a fixed rate of 4.79% for 60 months at £1,539.39 per month and thereafter 240 instalments of £2050.55 at 8.49% or the lender’s current variable rate at the time. The total charge for credit is £317,807.66 which includes £2,500 advice / processing fees and £125 application fee. Total repayable £587,807.66

Secured / Second Charge Loans

Representative example

Borrow £62,000 over 180 months at 9.9% APRC representative at a fixed rate of 7.85% for 60 months at £622.09 per month and thereafter 120 instalments of £667.54 at 9.49% or the lender’s current variable rate at the time. The total charge for credit is £55,730.20 which includes £2,660 advice / processing fees and £125 application fee. Total repayable £117,730.20

Unsecured Loans

Representative example

Annual Interest Rate (fixed) is 49.7% p.a. with a Representative 49.7% APR, based on borrowing £5,000 and repaying this over 36 monthly repayments. Monthly repayment is £243.57 with a total amount repayable of £8,768.52 which includes the total interest repayable of £3,768.52.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME

REPAYING YOUR DEBTS OVER A LONGER PERIOD CAN REDUCE YOUR PAYMENTS BUT COULD INCREASE THE TOTAL INTEREST YOU PAY. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Promise Money is a trading style of Promise Solutions Ltd – Company number 04822774
Promise Solutions, Fullard House, Neachells Lane, Wolverhampton, WV11 3QG

Authorised and regulated by the Financial Conduct Authority – Number 681423
The Financial Conduct Authority does not regulate some forms of commercial / buy-to-let mortgages

Website www.promisemoney.co.uk