Finance Linked To YourOutstanding Invoices

Invoice Finance For Better
Cash Flow Management

Businesses can find themselves carrying the cost of
wages, suppliers, stock, and operations while waiting for
customers to settle their invoices. Invoice finance
provides a way to access funding against eligible
outstanding invoices, helping businesses manage the
gap between completing work and receiving payment.

Invoice Finance For Better Cash Flow Management

From Invoice To Working Capital

1

Issue Your Invoice

Your business completes the
work or delivers the goods and
invoices the customer.

2

Submit Eligible Invoices

Relevant invoices are provided
for assessment under the
chosen finance arrangement.

3

Access Working Capital

Funding is made available
against eligible invoices, subject
to the lender's terms and
requirements.

Invoice Finance Options

Invoice Financing

Access funding against eligible outstanding invoices to help
manage cash flow between invoicing and payment.

Invoice Factoring

A form of invoice finance where the financier may take
responsibility for collecting outstanding invoices,
depending on the arrangement.

Invoice Discounting

Access funding against invoices while the business
generally continues to manage its own customer
collections.

Debtor Finance

A broader form of receivables finance that can help
businesses unlock working capital tied up in amounts owed
by customers.

Making Better Use Of Your Receivables

Strong sales do not always translate into immediate cash flow. Payment
terms can leave businesses funding the period between delivering
work and receiving revenue, placing pressure on day-to-day operations.

Invoice financing can help bridge that gap by using eligible receivables
as the basis for funding. This can give businesses greater flexibility to
manage operating expenses, respond to new orders, or maintain
momentum without waiting for every outstanding invoice to be paid.

The appropriate structure depends on the business, its customers,
the invoices involved, and the lender's requirements.

Factoring, Discounting Or Another Debtor Finance Structure?

Invoice finance is not a single product. Invoice factoring and invoice
discounting can provide different approaches to managing receivables.

With factoring, the financier may take on responsibility for collecting
outstanding invoices, while invoice discounting generally allows
the business to retain control of its debtor ledger. Debtor finance
can encompass broader receivables-based funding
arrangements.

The distinction matters because the right structure should fit the way
your business manages customers, collections, cash flow, and internal
administration.

Common Questions About
Invoice Finance

What is invoice finance?

Invoice finance allows a business to access cash advances based on the value of their outstanding unpaid customer invoices, unlocking working capital without waiting 30, 60, or 90 days for payment.

Keep Business Moving
While Customers Pay

Waiting for invoices to be settled should not necessarily mean
putting business activity on hold. Efficient Capital Solutions helps
businesses compare invoice finance, invoice factoring, invoice
discounting, and other debtor finance options to identify a
structure suited to their cash-flow requirements.

Keep Business Moving While Customers Pay