What are the costs associated with invoice finance?

1. Sign up to Tide Accounting and connect your account to HMRC via MTD

2. Add VAT rates for each of your transactions

3. Tide Accounting will automatically calculate your VAT liability

4. Review your submission

5. Submit your return to HMRC directly from within the Tide platform

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.