What Are the Advantages and Disadvantages of Invoice Finance?

Consider whether invoice finance is the right solution for your business.

Want to know if invoice finance is the right funding solution for your business? We outline the advantages and disadvantages for you to consider:

Advantages of invoice finance 

  • Boost cash flow – No more waiting for your customers to settle invoices. Usually, funds get released within 48 hours, giving you more time to focus on business growth.
  • Enable growth – You can ease cash flow and have more accessible capital to make improvements and support business growth.
  • High approval rates – It's generally easier to arrange for businesses with bad credit as unpaid invoices are used as security.

Disadvantages of invoice finance 

  • Potential costs – You may be required to pay an exit fee, depending on the lender.
  • Strictly commercial – Finance is only available for invoices that are business-to-business.

Learn more about the benefits, use cases and how it works on our invoice finance solutions pages.