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Invoice Finance

What is Invoice Finance and how does it work?


Invoice Financing Explained

Invoice Finance is a straightforward process, and it begins with you raising your invoice for goods or services as usual. Once you’ve raised the invoice, a copy is sent straight to us at Hitachi Capital Invoice Finance. We will give you up to 90% of the invoice amount within 24 hours and the remaining 10% of the invoice once we've received full payment from your customer.

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We offer an Invoice Factoring solution whereby we collect the payments on your behalf managed by our team of expert credit controllers so you can focus on running your business. Our Confidential Invoice Discounting solution 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.

The benefits of invoice finance with Hitachi Capital
  • Boost your cashflow without having to wait up to 120 days for your customers to pay you
  • Our revolutionary digital onboarding gives you quicker access to funds and allows us 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

Awards and Accreditations

UK Finance

Business MoneyFacts 2019

Business MoneyFacts 2018


Read some of our client reviews here

4.6/5

Read some of our recent reviews


How can Invoice Finance help your business?


Get a quote

Contact our friendly UK advisors on freephone

0808 250 0859

08.45 - 17.15 Monday to Friday


Smarter, Faster and Simpler with Hitachi Capital Invoice Finance

Why use Hitachi Capital Invoice Finance? Watch this quick video to see how we are revolutionising the Cashflow Finance industry

Smarter, Faster and Simpler with Hitachi Capital Invoice Finance


Use our invoice finance quote 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 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.

What is invoice finance UK?

Invoice finance 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.

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.

Is invoice finance 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.

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.

  • Who should consider Invoice Finance?

    UK based Small-to-Medium sized businesses (SMEs) with the following criteria:

    • 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.

     

What is the difference between invoice discounting and factoring?

The primary difference between invoice discounting and factoring lies with who is responsible for collecting the unpaid invoices. Invoice discounting ensures the business is in control of collecting the unpaid invoices as this is a confidential facility. With invoice factoring, the factoring company takes control of collecting the unpaid invoices. In either case, businesses can be advanced up to 90% of their unpaid invoices upfront, with the remaining value coming after the customer has paid the invoice.

 

What is an invoice finance agreement?

An invoice finance agreement is when a business will enter an agreement with an invoice finance provider to finance their unpaid invoices. By having an agreement in place, businesses can have instant access to cash rather than waiting a period of time for their invoices to be paid by their customers. It helps to resolve any cash flow issues arising with a lack of instant cash available to pay monthly expenses such as rent and payroll.

Is Invoice finance 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

 

What is an invoice finance facility?

An invoice finance facility is a finance facility provided by an invoice finance provider to help business owners leverage their unpaid invoices in order to provide an instant cash injection into the business.

The lender will release up to 90% of a business’s invoices straight away. On payment of the invoice from their customers, the lender will release the final amount minus any fees and charges.  There are different types of invoice financing options available to businesses depending on the situation and the level of control they require in collecting unpaid invoices.


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


Our Invoice Finance Products

Awards 

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

Business Moneyfacts Awards 2019

Best factoring & invoice discounting provider

At the Business Moneyfacts Awards in 2019, we were awarded Best Factoring & Invoice Discounting provider.

Business Moneyfacts Awards 2018

Best service from an invoice finance provider

At the Business Moneyfacts Awards in 2018, with around ten finalists in each category, we were awarded Best Service from an Invoice Finance Provider and were highly commended for the Best Factoring and Invoice Discounting Provider.


Testimonials
Business management & consultancy firm

Business management & consultancy firm

'Excellent customer service, not in your face just there when you need them. So far so good, very helpful staff, friendly and efficient. Pretty competitive too. Impressed!'

R. Marshall, Director, Dec 2017

Packaging merchants

Packaging merchants

'Five Star Hitachi Capital, Thoroughly professional in all aspects of the initial contact, audit, and now on board their excellent approachable and informative proactive team.'

M Horodczuk, June 2018


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 blog

What is invoice factoring?

Sep 2019

Read our brief guide to understand a bit more about what Invoice Factoring does

What is the difference between invoice discounting and invoice factoring?

Jul 2019

Read this short guide to understand what the key differences are between these main cashflow finance products.

Could your business be at risk if an airline goes under?

Oct 2019

Read the Hitachi Capital blog post providing information about what the effects of an airline going into administration could have on business owners in the UK.

Could working 32 hours per week make Britain more productive?

Oct 2019

Read the Hitachi Capital blog post providing information about how the proposed change for a four day working week could affect the UK.