How Does Invoice Finance Work? A Simple £10,000 Example
Your customer has 30, 60 or 90 days to pay. Your wages and suppliers cannot always wait. Invoice finance releases cash from unpaid sales invoices so your business can keep moving.
How does a £10,000 invoice become cash in your bank?
- Raise a £10,000 sales invoice for goods supplied or work completed.
- Receive £9,000 into your business bank account the same day, with an active facility and an approved invoice at a 90% advance.
- Your customer pays through the agreed payment arrangements.
- Receive the remaining £1,000, less agreed fees. The retained 10% is not the fee.
As you raise new eligible invoices, the funding cycle continues. You do not need to wait for one customer to pay before submitting another eligible invoice. Available funding follows your eligible unpaid invoices, within the agreed facility limits.
Can a new business use invoice finance?
Yes—new starts with eligible business-to-business invoices can obtain invoice finance. Go-Factor helps new businesses, growing companies and businesses reviewing an existing facility understand, compare and secure the right funding.
Speak to Go-Factor Before Approaching the Market
Sending the same funding request to several brokers and funders can create duplicate applications, repeated calls and additional credit searches, depending on each provider’s process.
Start with one conversation with Go-Factor. We review your requirements, identify suitable funding providers and coordinate the introductions. Tell us who you have already approached so we can avoid duplicate submissions and keep your funding search focused.
What could your unpaid sales invoices release?
Talk to Go-Factor about your customers, payment terms and funding needs. Indicative offer the same day. Funding in one week.
Fast. Flexible. Funding, Built Around Your Business.
Request Your Funding Review →Illustrative example, assuming full customer payment. Funding, advance rates and timescales are subject to eligibility, approval and agreed terms.
