Capito arranges Invoice Finance for UK businesses that invoice other businesses. A specialist lender advances 70–90% of an invoice's value, usually soon after you raise it. Facilities start from over £25,000, with no set upper limit.
Advance
70–90% of invoice value
Facility size
Over £25,000, no set maximum
Turnover
Lenders usually look for £130,000+ a year
Trading history
Usually at least 1 year
Options
Whole ledger or selected invoices
Confidential
Discounting can stay confidential from your customers
What is invoice finance?
Invoice finance lets a business borrow against the money its customers owe it, so instead of waiting 60 days or more to be paid, you get most of the invoice value from a lender soon after you raise it. When your customer settles, the lender takes back what it advanced, plus its fees. It suits businesses whose cash sits in unpaid invoices rather than in property or equipment.
How does invoice finance work?
1. You raise an invoice to a business customer, as you do now.
2. The lender advances 70–90% of its value, depending on the lender and your sales ledger. This sets your availability: the amount you can draw.
3. Your customer pays the invoice on its normal terms, into an account the lender controls.
4. You receive the balance, less the lender's fees.
With a whole-ledger facility this happens on every invoice, so the money available to you rises and falls with your sales.
Factoring or discounting?
Both release cash from unpaid invoices. The difference is who chases payment.
We arrange both, plus selective invoice finance.
Check my eligibility →What is selective invoice finance?
Instead of financing your whole sales ledger, you choose which invoices to fund, often a single large invoice or one customer. It's more flexible and you only pay when you use it, though the fees per invoice tend to be higher than a whole-ledger facility.
Who can get invoice finance?
Lenders usually look for:
Invoices to other businesses (not consumers)
Annual turnover of about £130,000 or more
At least a year of trading
Customers with a good payment record, and no single customer making up too much of the ledger
Invoices for goods delivered or work completed, rather than staged or disputed payments
Which sectors a lender will fund varies from lender to lender, so tell us what you do and we'll check which lenders fit.
What does invoice finance cost?
There are two main charges. The first is a service fee, typically 0.2% to 2% of turnover. Where it sits depends on your turnover, how much work the facility involves and how straightforward your goods or services are.
The second is a discount rate, which works like interest. It's charged only on the money you actually draw from your availability, not on the full facility.
Some lenders also charge set-up or other fees, and we'll show you every one of them before you go ahead. Rates and fees vary by lender and case.
Is invoice finance regulated?
Invoice finance isn't regulated by the Financial Conduct Authority. Capito is a broker, not a lender, and is not regulated by the FCA.
How long does it take?
Usually 1–3 weeks, depending on how complex your case is.
Invoice finance FAQs
How much can I raise through invoice finance?
Typically 70–90% of the value of the invoices you finance. The total depends on your sales ledger, so the facility grows as your sales grow. We arrange facilities over £25,000, with no set maximum.
Will my customers know I'm using invoice finance?
With factoring, yes, because the lender collects payment. With confidential invoice discounting, usually not: you keep collecting payments yourself.
Can I finance just one invoice?
Yes. Selective invoice finance lets you choose individual invoices or customers rather than your whole ledger.
What turnover do I need?
Lenders usually look for annual turnover of around £130,000 and at least a year of trading.
Is invoice finance the same as a business loan?
No. A loan gives you a fixed amount to repay over a set term, whereas invoice finance moves with your unpaid invoices, so what you can draw changes as your sales do. Our guide to business loans vs invoice finance compares the two.
Can I use invoice finance to pay a VAT or tax bill?
Yes, the cash can be used for any business purpose. Our guide on funding a VAT or corporation tax bill covers the options.
Will enquiring affect my credit score?
No: we don't run a credit check when you enquire, and a lender only runs one if you decide to apply.
How are you paid?
Usually by the lender, as a commission when your facility completes, and in some cases there's a broker fee too; either way, we'll tell you about it before you go ahead.
A few details and we'll match you with suitable lenders. No credit check until you choose one.
No obligation. We're a broker, not a lender, and may receive commission from lenders.