Factoring
The provider advances cash against your invoices and runs credit control and collection for you.
Invoice finance
Get paid when you invoice, not 90 days later
For SMEs that trade on credit terms and feel the wait between doing the work and getting paid. Invoice finance releases cash against your sales ledger so the next job isn't held up by the last one.
Invoice finance releases cash against your sales ledger rather than waiting 60 or 90 days for customers to pay. It suits businesses that invoice other businesses: contractors, wholesalers, manufacturers, recruiters and service firms with good customers who simply pay slowly.
Because the facility is linked to your sales, it can grow as you do. That makes it a natural fit for a business taking on bigger contracts, where the cost of delivering them arrives well before the income.
3S arranges invoice finance through our group's invoice finance specialists, working alongside Novora Asset Finance™, so it can sit next to any asset or loan facility you already have.
Why 3S
- One contract, one point of contact
- A plan within 48 hours
- Facility agreed before you commit
- Broad lender panel via Novora Asset Finance™
Invoice finance
Invoice finance facilities we can arrange
Invoice discounting
You get the advance but keep control of your own sales ledger and collections.
Confidential discounting
Your customers pay you as normal and need not know a facility is in place.
Selective and spot invoice finance
Fund a single invoice or a chosen customer rather than the whole ledger.
Construction finance
Facilities built for applications for payment, stage invoicing and retentions.
Matched to your sector
Providers have different appetites, so the facility goes to one that understands your customers and contracts.
Clear terms up front
The fees, notice period and any minimum term are set out in writing before you commit.
Factoring or invoice discounting: which suits you
The difference is who chases the money. With factoring, the provider manages your sales ledger and collects from customers, which can free up a stretched finance team. With invoice discounting, you keep collecting yourself and the facility is often confidential.
Construction is treated differently because payment depends on certified valuations, contra charges and retentions rather than a simple invoice. Many general providers won't touch it, so a specialist construction finance facility is usually needed.
Before you sign, read the notice period, any minimum term or minimum fee, and whether the facility covers bad debts. These, more than the headline, decide whether it works for you.
How it works
Three steps, one point of contact
Step 1
Tell us about your sales ledger
Roughly how much you invoice, who your customers are and your usual payment terms. Sole traders and newer businesses are welcome to talk to us directly.
Step 2
The specialists approach providers
Our group's invoice finance specialists pick providers whose appetite fits your sector and customers. Larger facilities may need accounts and an aged debtor report.
Step 3
Review the terms, then decide
You see the advance, the fees, the notice period and the total cost in writing before you commit. Once set up, cash is released as you raise invoices.
Next steps
How the funding fits alongside the work
Invoice finance can sit alongside a 3S proposal where a new contract will stretch your cash flow, or alongside asset finance for the equipment to deliver it. The facility is agreed before you commit to the contract. Finance is subject to status and credit approval. 3S Consult is not a lender and does not give financial advice; the terms, total cost and any fees are set out before you commit.
Evidence
What you end up holding
Before anything starts, you hold a written facility agreement showing the advance, the fees, the notice period and any minimum term. That gives you, and your accountant, a clear basis to compare it against waiting for payment.
Questions
Invoice finance: common questions
Will my customers know I'm using invoice finance?
With factoring, usually yes, because the provider collects payment. With confidential invoice discounting they need not know, as they pay you in the normal way.
Can I finance just one invoice?
Yes. Selective and spot invoice finance let you fund a single invoice or a chosen customer rather than committing your whole sales ledger.
Does invoice finance work for construction businesses?
Yes, but it needs a specialist. Applications for payment, retentions and contra charges make construction ledgers different, and only some providers fund them.
Is there a minimum term?
Some facilities have a minimum term and a notice period, others don't. These are set out in writing before you commit, and they are worth reading closely.
Can I use invoice finance alongside asset finance?
Often, yes. Many businesses fund equipment through asset finance and cash flow through invoice finance. Tell us what you already have in place.
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