What is Invoice Finance?

Invoice finance — also known as invoice discounting or accounts receivable finance — allows businesses to borrow against the value of unpaid customer invoices, releasing cash tied up in outstanding receivables before the customer pays. Rather than waiting 30, 60 or 90 days for payment, businesses can access up to 90% of the invoice value within 24 hours. Seven Hills Capital Group identifies the right invoice finance structure and lender for your specific sales ledger profile.

You raise an invoice to your customer as normal

You submit the invoice to the finance provider

The provider advances up to 85–90% of the invoice value — typically within 24 hours

Your customer pays the invoice on their normal payment terms

The provider releases the remaining balance minus their fee

Pros

• Immediate cash against invoices already raised — not new debt
• Facility grows with your turnover — the more you invoice the more you can access
• Confidential facilities available — customers need not know
• No fixed repayment schedule — the invoice payment repays the advance automatically

Things To Consider

• Only available to B2B businesses — not suitable for consumer-facing sales
• Fees can be higher than traditional business loans when expressed as an annual rate
• Customers must be creditworthy for lenders to advance against invoices
• Some lenders require whole-ledger facilities — not selective individual invoices

How Seven Hills Capital Group Could Help Your Business

Every business situation is different. The illustrative examples on our case studies page are based on common scenarios we see from UK business owners and landlords - showing how the right finance product, found through a whole-of-market broker, can make a real difference.

What is the difference between invoice finance and invoice factoring?

Invoice finance — also called invoice discounting — lets you retain control of your sales ledger and collect payment from customers yourself, keeping the arrangement confidential. Invoice factoring involves the lender managing your ledger and collecting payment directly from your customers. Seven Hills Capital Group will advise which structure is right for your business.

How much of my invoice value can I access?

Most invoice finance providers advance 80–90% of the invoice value upfront. The remaining balance minus fees is released when your customer pays. The exact advance rate depends on the lender and the credit quality of your customers — we will identify the best advance rate available for your ledger.

Do my customers need to know I am using invoice finance?

Not necessarily. Confidential invoice discounting facilities operate without your customers knowing. With invoice factoring, customers are aware as they pay the finance provider directly. Seven Hills Capital Group will identify which option is available and most appropriate for your customer relationships.

Is invoice finance suitable for a single invoice or does it require a full ledger?

Some providers offer selective or single invoice finance. Others require a whole-ledger accounts receivable facility. We will identify which structure suits your turnover volume and cash flow pattern.

How quickly can I access funds through invoice finance?

Once a facility is in place, funds can typically be accessed within 24 hours of raising an invoice. Setting up the initial facility takes 1–2 weeks from application to first draw. Seven Hills Capital Group will manage the setup process and get you to first drawdown as quickly as possible.