Can I switch invoice finance providers later, and what costs or steps are involved?
Yes - you can switch invoice finance providers, but expect legal steps, exit fees, debtor transfers and possible short-term cashflow disruption.
Category Invoice Finance
How does invoice finance compare to a term loan or overdraft for working capital?
Invoice finance frees cash from unpaid invoices and scales with sales; term loans suit one-off investments; overdrafts cover short gaps.
Can I use invoice finance just for seasonal peaks or short-term cash gaps?
Use invoice finance for seasonal peaks or short-term cash gaps: unlock invoice cash quickly; compare fees, recourse, concentration limits.
How can I compare invoice finance offers fairly across different providers?
Standardise quotes, annualise all fees and compare advance rate, reserves, service and contract terms to choose the best invoice finance deal.
Can I exclude certain customers from the facility if I only want to fund some debtors?
Many invoice finance products allow excluding specific customers; this affects advance rates, fees, reporting and legal steps—get matched to lenders.
How old can an invoice be and still qualify for funding?
Most lenders fund invoices up to 90 days; many extend to 120 days and specialists may consider up to 180 days with good debtor credit and docs.
Is there a minimum turnover, invoice volume or average invoice size to qualify?
No single minimum turnover or invoice size applies; eligibility depends on turnover, invoice frequency, debtor quality, sector and lender appetite.
What happens if a customer doesn’t pay—do lenders offer bad debt protection (non-recourse)?
Non-recourse (bad debt) protection is available via insured or selective factoring, but is limited by exclusions, insurer limits and higher fees.
What debtor concentration limits apply if I rely on a few large customers?
Debtor concentration: lenders typically cap single-debtor exposure ~10–30% and top 3–5 at ~40–60%; diversify, insure or use bespoke terms to mitigate.
How are disputed or overdue invoices treated by lenders?
Disputed/overdue invoices raise lender risk — expect exclusions, lower advances, reserves/holds. Factoring vs discounting affects dispute handling.
Are construction sector invoices, applications for payment and retentions eligible?
Construction invoices and certified payment applications are often fundable; retentions may need specialist finance—Best Business Loans can match you.
Can I include international/export invoices or invoices in foreign currencies?
Many funders accept export and foreign-currency invoices, but acceptance depends on provider policy, buyer/country risk, paperwork and FX.