Invoice finance is a financial solution that allows businesses to access the cash tied up in their unpaid invoices. Instead of waiting for customers to pay—which can take 30, 60, or even 90 days—invoice finance gives you immediate access to a large portion of the invoice value, usually within 24 hours. This makes it easier for businesses to maintain consistent cash flow and cover day-to-day expenses, such as payroll, rent, or purchasing supplies.
There are two main types of invoice finance: invoice factoring and invoice discounting. Both options provide businesses with early access to cash, but they differ in how payment collection is handled and how visible the arrangement is to your customers.
Invoice Factoring:
The finance provider manages the credit control process and collects payments directly from your customers. This is more hands-off for you, but your customers will know that you’re using a factoring service. Learn more about how invoice factoring works.
Invoice Discounting:
You retain control over your credit management, and the finance provider works behind the scenes. This is more discreet, as your customers won’t be made aware of the arrangement.
At Apollo, we offer a slightly different service called CHOCCS (Client Handles Own Credit Control), where you manage credit control but your customers are still aware of financing arrangement. For a detailed comparison of these options, visit our FAQ page.
Invoice finance is especially useful for businesses that have long payment terms or face delays in receiving payments from customers. Instead of waiting months to get paid, you receive most of the money owed to you upfront, which helps improve cash flow and supports business growth.
This solution is ideal for businesses that operate in industries where customer payments are typically delayed, such as construction, manufacturing, and recruitment. Additionally, it can be an attractive option for companies that may not qualify for traditional brank loans due to credit history or other factors. Unlike loans, invoice finance is not based on your business’s creditworthiness, but rather on the value of your outstanding invoices.
In summary, invoice finance is a flexible, fast, and reliable way to convert your unpaid invoices into working capital, giving your business the ability to thrive even during cash flow gaps.
If you’d like to get started with invoice finance, get a free quote from our team today! We’ll get back to you in as little as 24 hours.
Why Use Invoice Finance?
Invoice finance is particularly useful for businesses that have long payment terms or face delays in receiving payments from customers. Instead of waiting months to get paid, you receive most of the money owed to you upfront, which helps improve cash flow and supports business growth.
This solution is ideal for industries such as construction, manufacturing, and recruitment, where delayed customer payments are common. It’s also a helpful option for companies that may not qualify for traditional bank loans due to limited credit history or other factors. Unlike a loan, invoice finance isn’t based on your business’s creditworthiness but rather on the value of your outstanding invoices.
For more on the advantages of this financial tool, check out our benefits of invoice finance blog.
Is Invoice Finance Right for Your Business?
If your business operates on extended payment terms or regularly faces cash flow challenges, invoice finance might be a smart solution. It offers flexibility, speed, and reliability, allowing you to turn unpaid invoices into working capital. This can be a lifeline for businesses looking to grow, manage operational costs, or maintain stable cash flow during slow periods.
How to Get Started
If you’re interested in using invoice finance to boost your cash flow, getting started is simple. Get a free quote from our team today, or apply directly through our application page.
