Rangewell
Rangewell

Invoice Finance Explained

Invoice Finance is a method of obtaining cash advances on a business’ unpaid invoices. It can be broken into two distinct categories:

Invoice Discounting & Invoice Factoring

This involves a business passing its unpaid invoices off to a lending institution in exchange for cash. With Invoice Discounting the business will still be responsible for collecting payment for the invoice, while with invoice factoring that responsibility will be passed on to the lending institution.

Supply Chain Finance

This depends on the other companies in a business’ supply chain – its network of suppliers and clients. The business is given a cash advance on its invoices based on the higher credit rating of the other businesses in its supply chain.

Each of the many types of invoice finance is available from the wide range of lenders on Rangewell’s extensive market map of SME lending options. Rangewell provides personalised finance solutions to SMEs seeking funding and allows accountants to offer their clients the funding options that best suit their unique needs – always free of charge to qualified accountants.

You may be interested in...

Guide on How to Chase Late Payments From Clients

Guide on How to Chase Late Payments From Clients

Your small business’ cash flow is, not surprisingly, dependent on cash coming in. Retailers can expect to ha...

8 July 2020
Why small businesses should diversify their revenue sources

Why small businesses should diversify their revenue sources

Running a small business can present many challenges, and a single-minded approach can help you overcome many of them. H...

22 June 2020
Debt Factoring: Advantages and Disadvantages

Debt Factoring: Advantages and Disadvantages

Being able to generate a reliable cash flow each month is a prerequisite for any UK business, providing a basis fro...

8 July 2019
Securing Confidential Invoice Discounting For Dental PracticeCase Study

Securing Confidential Invoice Discounting For Dental Practice

Invoice Finance can provide a financial lifeline for many businesses - but there are actually several different types of...

12 December 2018

Our service is:

Impartial

Transparent and independent, treating all lenders equally, finding the best deals.

In-depth

Every type of finance for every type of business from the entire market - over 300 lenders.

Personal

Specialist Finance Experts support you every step of the way.

Free

We make no charge of any kind when we help you find the loan you need.