For companies supplying goods or services on credit terms, invoice finance offers a direct route to unlock capital that would otherwise remain trapped in the sales ledger. It is not about raising debt in the traditional sense, it is about using money already earned, just not yet received.
At its simplest, invoice finance allows a business to access a large portion of an invoice’s value — often up to 90% — within a few working days of issuing it. Once the customer eventually pays, the remaining balance is passed on, less the agreed fees. This quick conversion of receivables into cash can support operations, cover short-term obligations or fund investment, all without waiting weeks or months for clients to settle their accounts.
The control structure depends on the type of facility chosen. Some firms prefer invoice discounting, where they remain in charge of their own collections, maintaining full visibility over customer relationships. Others opt for invoice factoring, which shifts the burden of chasing payments to the finance provider. Both models have their place, depending on the internal resources and preferences of the business.
Time Finance plc (LON:TIME) is an AIM-listed business specialising in the provision or arrangement of funding solutions to UK businesses seeking to access the finance they need to realise their growth plans. Time Finance can fund businesses or arrange funding with their trusted partners through Asset Finance, Invoice Finance, Business Loans, Vehicle Finance or Asset Based Lending.
