Can start-ups use invoice finance?
Yes. Start-up businesses can use invoice finance as soon as they raise eligible B2B invoices for completed work. They do not need years of filed accounts. The assessment focuses on the customers, invoices, evidence of completed work, directors’ experience and how credit control will be managed.
This makes invoice finance particularly useful when a new business must pay wages, suppliers or operating costs before its customers settle their invoices.
What Does a Start-Up Business Need?
A provider will normally want to see:
- Business customers buying on agreed credit terms.
- Completed and accepted goods or services.
- Clear invoices supported by contracts, orders, timesheets or delivery evidence.
- Customers with acceptable credit quality.
- A realistic sales forecast and funding requirement.
- Directors with relevant business or sector experience.
Go-Factor understands which providers actively support new-start business funding and how each application should be presented.
How Much Can Be Released?
Invoice finance commonly releases an agreed percentage of each eligible unpaid invoice. The actual availability depends on customer limits, invoice eligibility, concentration, reserves and the proposed facility.
A business with one suitable invoice may also consider single-invoice finance instead of funding its complete sales ledger.
What Cannot Be Funded?
Standard invoice finance cannot release cash before work is completed and an eligible invoice exists. Consumer invoices, cash sales, disputed debts and invoices for incomplete work are not normally suitable. Contractual debts, stage payments and retentions require specialist assessment.
A previous credit issue does not automatically prevent a start-up from being considered. Go-Factor can explain the circumstances and identify providers whose criteria fit the business.
Should I Approach Every Invoice Finance Provider?
No. Do not flood the market with the same enquiry. Duplicate approaches can waste your time, create conflicting information and trigger unnecessary calls. They may also prevent Go-Factor from using parts of its panel where a provider has already recorded the first direct approach or introduction.
Speak to Go-Factor first. We will assess the requirement, present the opportunity properly and approach only providers that genuinely fit the business.
Go-Factor insight: A start-up should not be judged by the accounts it has not yet had time to produce. The quality of its customers, completed work, invoice evidence and directors’ experience can be far more important.
HMRC identifies invoice discounting and factoring as sources of short-term funding for companies issuing invoices on credit terms. Read the official HMRC explanation .
Learn more about invoice finance for UK businesses .
Fund Your Start-Up’s Customer Invoices
Speak to Go-Factor about your invoice finance requirement. We will assess the requirement and approach suitable providers without flooding the market.
Request Your Funding ReviewFunding remains subject to invoice eligibility, customer limits, provider assessment, approval and agreed terms.
