Invoice finance, also known as debtor finance or factoring, helps businesses unlock cash tied up in unpaid invoices by providing an upfront advance of up to 95% of the invoice value. The remaining balance, minus fees, is paid once the customer settles the invoice.

Types of invoice finance facilities include:

• Confidential Invoice Discounting (CID): Business borrows against invoices, with the process kept confidential from customers.

• Invoice Discounting: Business borrows against unpaid invoices, with customers aware of the lender's involvement.

• Client Handles Own Credit Control Services (CHOCCs): Business manages credit control while receiving funding against invoices.

• Spot Factoring: Business sells specific invoices for immediate cash, ideal for one-off situations.

• Selective Invoice Finance: Flexible financing where a business selects which invoices to finance.

Costs typically include:

• Service fee: A percentage of the invoice value or fixed monthly fee for administration.

• Discount fee: Typically between 1-5%, similar to an interest rate for the facility.

Arrangement fee: Varies by lender, covering the cost of setting up the facility.

What Can I Use the Loan For?

Unsecured loans can be used for almost any business purpose, including cash flow management, stock purchases, equipment upgrades, marketing campaigns, or hiring new staff. It’s up to you how to invest in your growth.

What Are the Interest Rates & Terms?

Interest rates for unsecured business loans typically range from 6% to 25% APR, depending on the lender, loan amount, and your credit profile. Repayment terms vary between 6 months and 5 years. We’ll match you with the best rates available for your situation.