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What is invoice finance and how does it work?

Award winning invoice finance provider in the UK.

 

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What is invoice finance?

Invoice finance is a finance facility provided by an invoice finance lender to help business owners leverage their unpaid invoices giving them an instant cash injection into the business.

There are different types of invoice finance options available to businesses depending on the situation and level of control they require in collecting their unpaid invoices. The main different types of invoice finance include: invoice factoring, invoice discounting, selective invoice discounting, debt factoring, accounts receivable factoring and spot factoring. On payment of the invoice from their customers the lender will release the final amount minus any fees and charges. 

Invoice finance companies enable business owners to leverage their unpaid invoices and release up to 90% of the invoice value to boost their cash flow position.

Invoice finance companies offer an invoice funding solution, whereby payments are collected on your behalf managed by our team of expert credit controllers so you can focus on running your business.

Invoice finance is offered to businesses who want to maintain their own credit control processes, therefore this remains strictly confidential so your customers are unaware of our involvement.

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What are the advantages of using invoice finance companies?

    • Boost your cashflow without having to wait up to 120 days for your customers to pay you
    • An invoice finance company with a revolutionary digital onboarding process, giving you quicker access to funds and the ability to take on new business remotely during this lockdown period
    • Release up to 90% of the invoice straight away, and the final 10% when the invoice is settled
    • No need to chase your invoices, we can do it for you
    • 6 month trial period followed by a rolling contract

The world is changing and so are we!

From early next year, we’ll be rebranding from Hitachi Capital Invoice Finance to NOVUNA Business Cash Flow with a fresh new look and feel. We’re really excited about our new brand and are positive you’re going to love it too! Find out more


Invoice finance has been revolutionised with our digital onboarding process


Use our invoice finance calculator

Please note that costs are an estimate only and are based on the entered values. Your final quote may change once a Business Development Manager has assessed your business in more detail.

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Invoice finance company awards

Best Invoice Finance Service 2021

Highly Commended Factoring Provider 2021

Best Invoice Financing Provider 2020


Read our latest client reviews here

4.7/5

Read some of our recent reviews


How can Invoice Finance help your business?


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Contact our friendly UK advisors on freephone

0808 250 0859

08.45 - 17.15 Monday to Friday


Why choose an invoice finance solution for your business?

Why choose an invoice finance solution for your business?

Why choose an invoice finance solution for your business?

Watch this quick 30 second video to see why you might want to choose invoice finance as an option for boosting your business growth by saving time on chasing invoices and receiving funds quickly.


Smarter Faster Simpler

Why use Hitachi Capital Invoice Finance as your Invoice Finance Broker?

Watch this quick video to see how we are revolutionising the Cashflow Finance industry.

Smarter, Faster and Simpler with Hitachi Capital Invoice Finance.

Smarter Faster Simpler


Invoice Finance FAQ's

  • How much does Invoice Finance cost?

    We were the first provider to offer a one fee solution from 0.45% to 5% of your turnover depending on the size of your business. Our Inspired Cashflow product comes with

    • No hidden fees
    • No extras
    • No set up costs

    You can use our invoice calculator to give you an estimate of price and to understand how much cash you could release back in to your business by using Invoice Finance.

     

Is invoice financing a good idea?

Invoice financing has become a popular solution for businesses due to its simplicity and providing funding to businesses quickly to improve their working capital. Waiting 30 - 90 days to receive payment of invoices or late invoice payments can put a financial strain on a business. To avoid running into cash flow problems, businesses can use an invoice financing provider to secure a percentage value of the unpaid invoice upfront. The lender will collect the money once the invoices have been settled along with a percentage fee.

 

How does invoice financing work?

A business raises invoices as they normally would and the invoice details are passed on to the invoice finance provider, who will then release a percentage of the value of the unpaid invoice upfront. With Hitachi Capital Invoice Finance, our revolutionary digital onboarding process allows businesses to be set up from first appointment to release of funds within 24 hours for smaller SMEs and up to 7 days for larger corporate businesses.

Depending on the invoice finance agreement entered, the business or the invoice finance provider will chase payment for the unpaid invoices. Once the invoice has been paid, the invoice finance provider will release the remaining balance minus a small fee for the service.

What is invoice financing in the UK?

Invoice financing in the UK is where an invoice finance provider buys a business’s unpaid invoices for a fee. The provider will often provide a percentage value, usually up to 90%, of the invoice upfront in the form of a loan.
Once the client has paid the invoice, the lender will collect the balance in addition to a small fee. This means businesses can free up cash flow and don’t have to wait to receive payment for their goods or services. There are 2 main types of invoice finance: Invoice Factoring and Invoice Discounting.

  • Who should consider Invoice Finance brokers?

    UK based Small-to-Medium sized businesses (SMEs) with the following criteria should consider invoice finance brokers:

    • Invoicing other businesses
    • Are starting up, growing or established
    • Have a turnover above £50,000 per year

    We cater for a wide range of sectors, including manufacturing, transport, professional services and recruitment.

     

Is Invoice finance in the UK suitable for small businesses?

Invoice finance provides an alternative finance solution to traditional forms of finance such as loans, lines of credit and overdrafts which often come with a multitude of eligibility requirements. The mechanics of providing funding for unpaid invoices to improve the cash flow of a business works the same for any size of business.

In order to be eligible for Hitachi Capital invoice Finance:

    • Your business has to be invoicing other businesses (not consumers)
    • You can be starting up, growing or well established. We support many businesses at different stages with their growth ambitions
    • If your business is a new start, we prefer homeowners, but if not please still get in touch as we will look at each business individually
    • Your business needs to have a minimum turnover of £50,000 per year

 

Are invoice finance brokers regulated in the UK?

Invoice finance services are not currently regulated by the FCA (Financial Conduct Authority). To ensure integrity and a fair service is provided, UK Finance have an industry-wide code of conduct. The regulation of the invoice finance industry would most likely lead to an increase in the costs associated with invoice financing. Not being regulated ensures the costs of invoice financing are kept down for the consumers seeking to utilise invoice finance for an instant cash injection for their business.


Is invoice finance right for you?

Get a quote

Contact our friendly UK advisors on freephone

0808 250 0859

08.45 - 17.15 Monday to Friday


Other invoice finance products we offer

Awards 

Business Moneyfacts Awards 2021

Best Service from an Invoice Finance provider

Delighted to be chosen as winners in the category for Best Service from an Invoice Finance provider at the Business Moneyfacts Awards 2021

Business Moneyfacts Awards 2020 double award

Best Factoring and Invoice Discounting provider for the second year running

Delighted to be winners for the second year running at the prestigious Business Moneyfacts awards 2020. We are officially the Best Factoring and Invoice Discounting provider as chosen by Business Moneyfacts.

Business Moneyfacts Awards 2020

Best Factoring and Invoice Discounting provider

Delighted to be chosen as winners in the category for Best Factoring and Invoice Discounting provider at the Business Moneyfacts Awards 2020


Testimonials

Game-changer for our transport business

The nature of our business and the up-front costs involved, fuel, vehicles, wages etc, are crippling. Hitachi came out on top when we compared similar invoice-financing solutions.

We enjoy a 6 month ‘trial’ with an option to continue with a 3-month rolling contract. The admin and support staff are available, friendly and knowledgable. It makes set-up with accounting software and transport platforms a breeze.

We highly recommend.

Managing Director, July 2021

Great service so far

From start to finish the process for transferring our invoice finance to Hitachi has been been brilliant, a smooth transition, great communication our link Person Jonathan Oakes has helped the process go through seamlessly, A great experience so far and a brilliant start to what we hope will be a long term partnership.

Director, August 2021


Explore Hitachi Capital Invoice Finance

Eligibility

Want to know more about who should apply?

Products

Our Invoice Finance Products

Case studies

Invoice Finance Case Studies

Blog

Invoice Finance Blog

Cashflow Clinic

Help and support for SMEs with cashflow concerns or questions.


From our invoice finance blog

Please help us win at Business Moneyfacts 2022

Oct 2021

Surveys for the Business Moneyfacts Awards 2022 are now open, please help us win by submitting a testimonial!

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Get a quote

Contact our friendly UK advisors on freephone

0808 250 0859

08.45 - 17.15 Monday to Friday