Invoice Factoring

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Does your business need Invoice Factoring?

Invoice factoring is the most widely used form of invoice finance available. It allows you to unlock up to 95% of the cash tied up in invoices while saving substantial amounts of time and effort chasing customer payments and running credit control.

Invoice factoring is an extremely flexible funding solution that enables you to sell one or multiple invoices to a lender at a discounted rate. Take control of your cash flow and take your time back so you can focus on growing your business.

growth rocket

Unlock up to 95% of the invoice amount

Invoice factoring can enable your business to release these funds immediately.

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Get your time back

Outsource your credit control and take away the stress and effort of chasing payments.

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No more late payments

Reduce the risk of late payments substantially and give control of chasing payments to a dedicated team of professionals.

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Extras

Optional bolt-ons to your facility include bad debt protection and payroll support, allowing you to protect your business and free up time.

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Healthy cash flow

Cash is made immediately available to your business as soon as your orders are invoiced.

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No asset security required

The invoice itself provides the required security, so there’s no need for additional asset security. A significant advantage over other business loan products.

How Invoice Factoring Works

Your business is different to everyone else’s, so we use our 20+ years of expertise to align you with the perfect invoice finance facility for your needs. It’s simple…

Step 1
Sell your invoices
Sell your unpaid invoices to your chosen funder who will buy them for an agreed upon percentage of their total value. Unlike invoice discounting, invoice factoring is not confidential, so your customers will know you are using an invoice funder.
Step 1
Step 2
Raise invoices
Your chosen lender raises the invoice/s to your customers on your behalf and takes full responsibility for credit control and chasing payments.
Step 2
Step 3
Release funds
Your funder will pay you up to 95% of your unpaid invoices on day one, allowing your business to carry on as usual without having to wait for long payments from your customers.
Step 3
Step 4
Completion
Your customer pays their invoice/s on their usual terms directly to your lender. The lender then pays you the remaining balance minus their fee.
Step 4

Release cash in your unpaid invoices

Does my business qualify for invoice factoring?

Invoice factoring is suitable for many businesses who trade directly with other companies on standard credit terms. Your business must be based in the UK or Ireland and turnover £100,000 or more.

If your business meets the following criteria we can help

If your company does not meet the criteria then don’t worry – our expert team can offer a whole array of options tailored to your specific business needs. Just contact us to find your ideal solution.

How much does invoice factoring cost?

Typically there are two main fees involved when using an invoice factoring facility, a service fee and a factoring fee. These fees vary depending on your business and are impacted by the sector your business is in, your trading history, and how frequently you invoice. All costs are made completely clear before setting up a facility.

There are two fees when using an invoice factoring facility

service fee

1 - Service fee

This is the cost of utilising the facility, and is calculated as a percentage of your gross turnover.

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2 - Discount fee

This is the cost of borrowing and is calculated as a percentage of the invoice value.

When you should use invoice factoring for your business

If you are looking for a funding solution where you no longer have to chase payments and desire the benefits of someone else managing your credit control process then invoice factoring could be the perfect solution for your business.


If you are a business owner or company director then you understand how precious your time is, and how integral it is to maintain healthy cash flow. With an invoice factoring facility you can relinquish all administration to your new lender and get back to the most important job you have – growing your business.

If you are looking to unlock up to 95% of the cash from unpaid invoices without having to chase the payment or wait then invoice factoring could be the perfect solution for your business.

Selective invoice finance suits the majority of the UK SME market

Our partners have helped thousands of businesses just like yours, across an array of sectors including:

Wholesale
Engineering
Recruitment
Manufacturing
Construction
Exports

Don’t wait to get paid so you can focus on growth

FAQs

Invoice factoring allows your business to relinquish credit control while receiving up to 95% of your unpaid invoices, freeing up time and maintaining healthy cash flow.

No, the reason for Invoice factoring is to take the stress and time out of chasing payments by giving full credit control to your lender.

The main difference is the element of confidentiality. With invoice discounting the responsibility of credit control lies with you, so your customers will not know you are using an invoice finance facility, whereas with invoice factoring these responsibilities lie with your funding provider.

All sorts of businesses utilise invoice factoring facilities to unlock working capital and save time. If you invoice commercial customers in almost any industry then invoice factoring could be the perfect fit for your business.

You don’t need to be in business for long at all, whether you are a start-up or long established business we can help to get you funded.

The process is quick and easy, and our completely free service is no obligation so you can test the water without any commitment.

Our partners will not run a credit check against you, but will often run a credit check against your customer to calculate the risk of setting up a facility for your business.

As all businesses are different, there is no one size fits answer. However, our expertise lies in working at pace to meet and surpass your needs. In most cases an invoice factoring facility can be live within just a few days.

All of our partners have been vetted to an extremely high standard to ensure that they carry out the necessary credit checks on your customers to make sure they are more than likely to pay on time.

As well as this accounts receivable reporting and invoice management will be undertaken throughout your invoice factoring facility.

Before entering an agreement, and depending on your lender, you will be given a full understanding of any processes that will be adhered to in the unlikely event that your customer cannot pay any money outstanding.

Reform Financial - Finance, Restructuring, Insolvency

Reform Financial help thousands of companies and individuals to find the right financial support. The main benefit of speaking with us is that we do not offer advice, but instead we can give you a comprehensive understanding of all of our services, and guide you through the process should you decide that one of our solutions is for you. If you need more information please feel free to visit our Complaints Policy and Privacy Policy.

Contact Us

Reform Financial Limited
124 City Road
London
England
EC1V 2NX

Reform Financial Limited is registered in England and Wales under company number 13084762.  Reform Financial Limited does not administer or provide advice relating to any business finance products. Reform Financial Limited can introduce applicants to a number of finance providers based on the applicants circumstances. Reform Financial Limited do not charge for this service but may receive a commission from lenders or other brokers for such introductions.

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