Invoice Finance
When does invoice finance make sense?
If your customers are other businesses and they pay on terms, your sales ledger is an asset. Invoice finance borrows against it, growing automatically as your turnover grows.
Large customers, public bodies and main contractors often pay on 60 or 90 days. Invoice finance closes the gap between doing the work and being paid for it.
Winning more work means more wages, more stock and more suppliers to pay before your customers pay you. A facility that grows with your ledger keeps up where an overdraft cannot.
Sectors with weekly payroll or heavy upfront costs and monthly invoicing are natural fits. Payroll funding and back-office services can be built in.
Selective invoice finance lets you fund one large invoice or one customer at a time, with no long-term commitment and no need to finance the whole ledger.
How invoice finance comes together
Discovery call
Lender terms provided
Funds issued
What funders look at
Factoring, invoice discounting or selective finance?
*Indicative only. Advance rates, fees and contract terms depend on the funder, your sector and your customers.
Get invoice finance terms
Tell us about your customers and how much of your ledger you want to fund, and one of our corporate finance advisers will call you back, usually the same working day.
Client Testimonials
Invoice Finance FAQs
You raise an invoice to a business customer as normal and the funder advances a percentage of its value, usually within 24 to 48 hours. When your customer pays, the funder releases the balance less their fees. The facility grows as your sales grow.
With factoring, the funder manages your sales ledger and collects payment from your customers, who know the facility is in place. With invoice discounting you keep control of credit control and the arrangement is usually confidential. Discounting suits established businesses; factoring suits smaller teams.
Yes. Selective or single-invoice finance lets you fund individual invoices as and when you need to, with no ongoing contract. It costs more per invoice than a whole-ledger facility but gives you complete flexibility.
Only if you choose a disclosed facility such as factoring. Confidential invoice discounting is designed so that customers continue to pay you as normal, and many large businesses use it without their customers ever being aware.
There are usually two charges: a service fee for running the facility, expressed as a percentage of turnover, and a discount charge on the funds you actually draw, similar to interest. We compare both across funders so you can see the true cost.
Any business that sells to other businesses on credit terms, particularly recruitment, logistics, manufacturing, wholesale, construction services and professional services. Businesses selling to consumers or paid upfront are not usually suitable.
Often, yes. Because the security is the invoices rather than the balance sheet, funders can support younger or recovering businesses provided the customers are creditworthy and the invoices are for completed work.
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Why Ramsay & White?
Ramsay & White Corporate Finance is a trading name of Ramsay & White Corporate Finance Ltd, which is an Appointed Representative of New Leaf Distribution Ltd, authorised and regulated by the Financial Conduct Authority, FCA number 460421. Ramsay & White Corporate Finance is a credit broker and not a lender. We work with a panel of lenders to find you a potentially suitable arrangement for consideration. ICO registration ZC246341, which you can check via www.ico.org.uk. Registered address: 7 Soundwell Road, Staple Hill, Bristol, United Kingdom, BS16 4QG. Registered in England & Wales. Registration number: 17450526.
We will receive commission from lenders. Different lenders pay different amounts depending on different commission models. For transparency we work with the following commission models: fixed fee, fixed rate of commission, percentage of the amount you borrow and rate for risk (this is based on the risk profile of the application). Further details of the commission model, calculation and amount will be disclosed to you throughout your customer journey.