Invoice Finance Scotland & UK

Fast Cash Flow Solutions for B2B Businesses

Types of Invoice Finance We Arrange

Invoice Factoring

What it is: The finance provider manages your entire sales ledger and takes responsibility for collecting payments from your customers. They advance you up to 90% of each invoice value immediately, then pay the remaining balance (minus fees) once your customer settles.

Best for:

• Businesses wanting to outsource credit control and debt collection
• Companies with limited admin resources
• Firms that prefer not to chase customers for payment

How it works: Your customers are notified that payments should be made directly to the factoring company. The lender handles all payment reminders and collections on your behalf.

Typical costs: Service fee of 0.5-3% of invoice value + interest on funds drawn (usually 2-4% above base rate).

We work with invoice factoring providers who understand the unique challenges faced by businesses, from seasonal cash flow in tourism-related sectors to payment delays in construction.

Invoice Discounting

What it is: You receive an advance of up to 95% of your invoice value, but you retain full control of your sales ledger and customer relationships. The finance provider remains invisible to your customers.

Best for:

• Established businesses with strong credit control processes
• Companies that want to maintain direct customer relationships
• Firms with good financial management systems already in place

How it works: You continue to collect payments from customers as normal. When they pay, you repay the advance to the lender. Your customers never know you’re using invoice discounting facilities.

Typical costs: Lower than factoring (since you handle collections yourself) – typically 0.25-1.5% of invoice value + interest on funds drawn.

This is the most discreet form of invoice finance, ideal if you don’t want customers to know you’re using external funding.

Spot Factoring (Selective Invoice Finance)

What it is: Finance individual invoices on a case-by-case basis rather than committing your entire sales ledger. You choose which invoices to finance and when.

Best for:

• Businesses with occasional large invoices that strain cash flow
• Companies with seasonal cash flow needs
• Firms that don’t want an ongoing facility but need flexibility

How it works: When you have a large invoice and need immediate cash, you submit it to the lender. They advance 70-90% of the value within days. You pay back the advance (plus fees) when your customer pays.

Typical costs: Higher per-invoice fees than ongoing facilities (1.5-5% per invoice) but no commitment or monthly charges.

Spot factoring gives you complete control – use it when you need it, ignore it when you don’t.

Industries We Serve

Invoice Finance for Construction Companies

Construction businesses face unique cash flow challenges: long payment terms from main contractors, retention payments held for months, and the need to pay subcontractors and suppliers upfront.

Invoice finance for construction solves this by releasing cash from your invoices immediately, so you can:

• Pay subcontractors on time (maintaining good relationships)
• Purchase materials for the next project without waiting for previous payments
• Cover wages during payment delays
• Take on larger contracts without cash flow constraints

We help construction businesses in Scotland, England and Wales manage cash flow during project delays, retention periods, and seasonal fluctuations. Many of our construction clients combine invoice finance with asset finance to purchase equipment or bridging finance to secure project deposits.

Invoice Finance for Manufacturing

Manufacturers often face a painful cash flow gap: you need to purchase raw materials and pay production labour upfront, but you don’t get paid until weeks or months after delivering the finished goods.

Invoice finance for manufacturers bridges this gap by advancing you cash as soon as you invoice your customer. This means you can:

• Purchase materials for the next production run without waiting for payment
• Maintain consistent production schedules
• Accept larger orders without cash flow worries
• Invest in equipment or additional staff

Real example: A manufacturing client needed £50,000 to purchase materials for a large order while waiting for previous invoices to be paid. Invoice finance released the cash within 3 days, allowing them to fulfil the order and grow their business.

Invoice Finance for Wholesale & Distribution

Wholesalers and distributors typically extend 30-60 day credit terms to retail customers, but your own suppliers often demand payment within 14-30 days. This creates a constant cash flow squeeze.

Invoice finance for wholesalers solves this by turning your unpaid invoices into immediate working capital. You can:

• Pay suppliers early to secure volume discounts
• Stock more inventory to meet customer demand
• Expand the product range without cash flow constraints
• Replace expensive overdrafts with more cost-effective funding

This is particularly valuable if you’ve maxed out your business overdraft or your bank has reduced your facility.

Benefits of Invoice Finance

Significantly improve cash flow – Access up to 95% of invoice value within days of issuing it, rather than waiting 30-90 days for customer payment.

Fast access to funding – Facilities can be arranged within 2-4 weeks. Once in place, funds are typically released within 48 hours of submitting an invoice.

Accessible to new businesses – Available to businesses with turnover from just £100,000 per annum. You don’t need years of trading history.

Suitable for most business types – Invoice finance can be offered to businesses across virtually any industry sector, from professional services to manufacturing, construction, and wholesale.

Interest charged only on amounts drawn – Unlike a business loan where you pay interest on the full amount, you only pay interest on the cash you’ve actually drawn down.

Outsource credit control (factoring only) – For factoring clients, the responsibility for administering your sales ledger and collecting debts is passed to the finance provider, freeing up your time.

Bad debt protection available – Protection against customers who can’t pay is available as an optional extra, providing peace of mind if you’re concerned about customer creditworthiness.

Grows with your business – Unlike a fixed loan, your available funding increases automatically as your invoicing increases. The more you invoice, the more cash you can access.

How Much Does Invoice Finance Cost?

Invoice finance typically costs 1-3% of your invoice value plus interest on the funds you draw (usually 2-4% above Bank of England base rate).

Example cost breakdown:

• Invoice value: £10,000
• Service fee: 2% = £200
• Funds drawn: £9,500 for 60 days
• Interest: 6% annual rate = £95
• Total cost: £295to access £9,500 for 60 days

Compare this to a business overdraft:

• Overdraft interest: 8-12% annual rate
• Arrangement fees: £500-£2,000
• Often requires personal guarantees

Invoice finance is often more cost-effective than maintaining a large overdraft facility, especially if you only need working capital occasionally.

Our promise: We search the whole-of-market to find you the most competitive rates. We’re not tied to any single lender, so we can compare invoice finance providers to secure the best deal for your business.

Am I Eligible for Invoice Finance?

Most B2B businesses qualify for invoice finance if you meet these basic criteria:

Minimum requirements:

• £100,000+ annual turnover (some lenders accept lower)
• You invoice other businesses (B2B), not consumers
• Your customers are creditworthy (able to pay their invoices)
• Invoices have payment terms (typically 30-90 days)

You may still qualify even if:

• You’re a relatively new business (1-2 years trading)
• You’ve been declined by your bank for traditional lending
• You have some adverse credit history
• Your business is seasonal or has fluctuating revenue

You won’t qualify if:

• You’re a business-to-customer (B2C)business (restaurants, retail shops, etc.)
• Your customers are consumers, not businesses
• You don’t issue invoices with payment terms

Not sure if you qualify? Contact me for a free, no-obligation assessment. Even if you’ve been declined by your bank, we have access to specialist lenders who may still be able to help.

Why Choose Capital 8 Finance?

I Understand Business Owner Challenges

I’m not a former banker or corporate finance executive. I ran my own business for over 10 years – a hospitality business where I held every role from chef to owner. I’ve experienced cash flow pressure and supplier payment deadlines.

This background gives me genuine empathy for what you’re going through. I understand the reality of running a business, not just the theory.

Whole-of-Market Access

We’re not tied to any single lender. I have access to:

• High street banks (HSBC Invoice Finance, Barclays Invoice Finance, Lloyds Bank Invoice Finance, NatWest/RBS Invoice Finance)
• Specialist invoice finance providers (Bibby Financial Services, Hitachi Capital Invoice Finance, Close Brothers Invoice Finance, Skipton Business Finance)
• Alternative lenders (Kriya, MarketInvoice, and other specialist providers)
• Complex case specialists for businesses with adverse credit or unique situations

This means I can compare rates, terms, and eligibility criteria across the entire UK market to find you the best solution.

Scotland-Based, UK-Wide Service

Based in Dundee, I serve business owners and property professionals across Scotland and throughout the UK. I’ve completed cases in England and Wales as well as throughout Scotland.

As a Scottish invoice finance broker, I understand the unique challenges of Scottish businesses – from seasonal tourism fluctuations to construction payment delays to manufacturing export challenges.

No Fee Unless Funds Secured

I only get paid when you get funded. If we can’t secure invoice finance for you, you pay nothing. This aligns my interests with yours – I’m motivated to find you the best solution, not just any solution.

Fast, Personal Service

As a solo operator, you deal directly with me throughout the entire process. No call centres, no account managers who don’t know your situation, no being passed between departments.

I’ll respond to your enquiry within 24 hours, provide you with options within 48 hours of receiving your information, and keep you updated at every stage.

Get Your Free Invoice Finance Quote

Ready to unlock the cash tied up in your unpaid invoices?

Here’s what happens next:

1. Initial consultation– We’ll arrange a call or meeting to discuss your funding needs and learn about your business
2. Eligibility check– I’ll review your situation and check eligibility with lenders in our panel
3. Options presented– Within 48 hours, I’ll provide you with invoice finance options, costs, and terms
4. Application submitted– Once you choose a lender, I’ll handle the entire application process
5. Funds released– Most facilities are in place within 2-4 weeks, then funds are released within 48 hours of submitting invoices

Contact Capital 8 Finance today for your free invoice finance quote.

Frequently Asked Questions

What’s the difference between invoice finance and factoring?

“Invoice finance” is the umbrella term covering all types of funding against unpaid invoices. “Factoring” is one specific type where the lender manages your sales ledger and collects payments. Invoice discounting and spot factoring are other types of invoice finance.

How quickly can I get invoice finance?

Facilities typically take 2-4 weeks to set up (including due diligence and legal work). Once in place, funds are released within 48 hours of submitting an invoice to the lender.

Can I get invoice finance with bad credit?

Possibly. Invoice finance is secured against your customers’ creditworthiness, not just yours. If your customers are creditworthy businesses, you may still qualify even with some adverse credit history. We have access to specialist lenders who consider complex situations.

Do I need to factor all my invoices?

Not necessarily. With invoice discounting and factoring, you typically commit your entire sales ledger. With spot factoring, you can choose which individual invoices to finance. We’ll help you choose the right structure for your needs.

Can I choose which invoices to finance?

Yes, with spot factoring (selective invoice finance). This gives you complete flexibility to finance large invoices when you need cash, without committing to an ongoing facility.

What happens if my customer doesn’t pay?

With standard invoice finance, you’re responsible for repaying the advance if your customer doesn’t pay (though the lender will pursue the debt). However, you can add bad debt protection (non-recourse factoring) which protects you if approved customers fail to pay. This costs extra but provides valuable peace of mind.

Is invoice finance regulated by the FCA?

Invoice finance for limited companies is not regulated by the FCA (it’s considered commercial lending). However, if you’re a sole trader or partnership, some protections may apply. All our lenders follow industry best practices and codes of conduct.

What’s the minimum turnover for invoice finance?

Most lenders require £100,000+ annual turnover, though some specialist providers will consider businesses with £50,000+ turnover. Contact us to discuss your specific situation.