If you run a small business and your customers take weeks or months to pay you, invoice finance is one of the easiest ways to sort out your cash flow.
You’ve done the work, you’ve sent the invoice, but the money won’t land in your account for 30, 60, or even 90 days. Meanwhile, you’ve still got wages to pay, suppliers to cover, and bills going out every week. Invoice finance for small businesses fixes that problem by getting you paid now instead of later.
What is invoice finance?
Invoice finance lets you get paid for your invoices straight away, instead of waiting for your customers to pay. You send your unpaid invoices to a provider like Apollo, and they give you most of the money upfront. When your customer eventually pays, you get the rest, minus a small fee.
You’re not borrowing money. You’re just getting faster access to money that’s already owed to you.
How does the process work?
It’s simple. You finish a job and send your customer an invoice like you normally would. You send a copy of that invoice to Apollo. We pay you up to 90% of the value, usually within 24 hours. Your customer pays the invoice when it’s due. Once we receive their payment, we send you the remaining balance, minus our fee.
You choose which invoices you want to finance. You don’t have to put every single one through. And because the amount you can access is based on your invoices, the facility gets bigger as your business gets bigger, without you having to reapply for anything.
Who is invoice finance for?
It’s for any business that invoices other businesses and has to wait to get paid. That includes construction companies, recruitment agencies, transport and logistics firms, manufacturers, and professional services businesses. If you bill on credit terms and you’re waiting for the money to come in, invoice finance can help.
It’s especially useful if you can’t cover wages or supplier costs because your cash is tied up in unpaid invoices, if you’re turning down new work because you don’t have the cash to take it on, or if your business is growing but your cash flow can’t keep up.
You don’t have to be a big company to use it. It works the same whether you’ve got two people or fifty.
How much does invoice finance cost?
It depends on your business. The cost is usually based on your turnover, the number of customers you’re invoicing, and the size of your invoices.
At Apollo, we tell you exactly what you’ll pay before you sign anything. There are no hidden fees. Most of our clients find that the cost is small compared to the benefit of knowing your cash flow is sorted every month.
Can you get invoice finance with bad credit?
Yes. This is one of the biggest differences between invoice finance and a bank loan.
A bank looks at your credit score and decides whether to lend to you based on that. With invoice finance, what matters most is whether your customers are reliable payers. Because the funding is based on your invoices and the businesses you’re billing, your own credit history is less important.
At Apollo, we work with businesses across the UK that have CCJs, previous IVAs, and other difficulties on their record. The bank saying no doesn’t mean we will.
What's the difference between invoice finance and a bank loan?
A bank loan gives you a fixed amount of money that you pay back over time with interest. How much you can borrow depends on your credit history, and the application can take weeks.
Invoice finance works differently. You’re not borrowing a lump sum. You’re getting early access to money your customers already owe you. The amount available to you goes up as your invoices go up, so it grows with your business automatically. It’s also faster to get started, usually days rather than weeks.
For small businesses that need ongoing, flexible funding rather than a one-off lump sum, invoice finance is usually the better option.
Is invoice finance right for your business?
If you’re regularly waiting on customer payments and it’s making it hard to cover your costs, pay your staff, or take on new work, then invoice finance is worth looking at.
It gives you a steady, predictable cash flow so you can stop worrying about when your customers are going to pay and start focusing on growing your business.
Ready to find out more?
Apollo is a Manchester-based invoice finance provider that works with small businesses across the UK. We’ve helped over 1,000 companies get the cash flow they need to grow, and getting started is quick and straightforward.
Fill out an application and a member of our team will get back to you within 24 hours with a quote based on your business.
