INVOICE FINANCE

Boost your cash flow and release cash tied up in unpaid invoices

Receive up to 90% of the invoice value

Funds are often accessible within 24 hours

We perform a soft credit search that won’t affect your credit rating

Tide has joined forces with Funding Options, becoming the largest credit marketplace in the UK.

Providing over £1 billion in funding to more than 21,000 businesses, we’re on a mission to help business owners grow with confidence.

How does invoice finance work?

Invoice your clients

Issue invoices to clients as usual upon completion of work, with the usual payment terms of 30 to 90 days.

Choose invoices to sell

Once you have set up your invoice finance facility, you will need to choose one or multiple invoices to ‘sell’. The invoice financier will effectively ‘buy’ the debt that is owed by your customer.

Receive funding

The invoice finance company advances you the payment – up to 90% of the value of the invoices, sometimes within as little as 24 hours.

Customer pays the invoice

Your clients pay their invoices, usually into the invoice finance company’s account.

Receive final balance

The invoice finance company provides you with the remaining balance, minus their fees.

Aaron MoOng Ong Buns

With the help of Tide and their team of business finance experts, I was able to navigate the complexities of business finance, and secure the necessary funds to grow my business.

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Invoice finance pros & cons

Small business invoice financing can be a great way to free up funds for your businesses, but, as with any type of borrowing, there are pros and cons to consider.

Pros

Quick access to funds Invoice financing is fast and can be obtained in as little as 24 hours.

Improved cash flow Invoice finance can improve your business's cash flow, as it allows quick, flexible funding that scales with your business.

Reduced admin With factoring, the finance company takes on the credit control aspects of invoicing, freeing up your time to focus on your business.

Cons

Disclosure to clients With invoice factoring, your clients will know that you are using an invoice finance company, which may affect their perception of your business. Invoice discounting is a good alternative if you would prefer to keep this private.

Accountability Depending on the agreement with the lender, you could still be held accountable if your client doesn’t pay their invoice.

Invoice Finance FAQs

Is invoice finance the same as accounts receivable finance?

Yes, invoice financing and accounts receivable financing are the same, and can also be referred to as receivables financing.

‘Accounts receivable’ is a term to describe all money due to the company.

Will my customers know I am using invoice financing?

If you choose invoice factoring, the provider will manage credit control and contact your customers on your behalf to ensure timely payment.

Invoice discounting, on the other hand, is confidential and allows you to remain in control of these relationships.

What are the costs associated with invoice finance?

Invoice finance agreements will be priced based on your business and requirements, however invoice discounting and invoice factoring have different fee structures.

Invoice discounting is structured like a loan, with interest payable plus an administration fee.

Invoice factoring charges are known as a ‘factor rate’, which is based on level of risk, volume of invoices, and the time credit is extended for, amongst other factors.