Unpaid invoices

Cash is coming, but it is stuck in invoices your customers have not paid yet.

Receivables finance and factoring turn invoices into cash now; an overdraft bridges the gap without touching the invoices; P2P can fund the gap as a fixed-term facility. The decisive questions are invoice eligibility, fees, recourse (who bears it if a customer never pays), customer payment timing, and exactly what repayment obligations remain yours.

Facilities to compare

Bank facilities Illustrative demo data — not a live provider offer

Invoice and receivables financing

Financing against your unpaid invoices: the bank advances a percentage of approved invoices and you settle when your customer pays.

Unpaid invoicesCash-flow gaps

What it is: Financing against your unpaid invoices: the bank advances a percentage of approved invoices and you settle when your customer pays.
The business need it can address: Cash tied up in invoices issued to creditworthy customers who pay in 30, 60 or 90 days.
How it works in the business: You submit invoices; the bank advances most of their value (commonly 70–90%) and releases the balance, minus fees, when the customer pays. Which invoices qualify depends on your customers' standing.
How repayment, settlement or ownership works: Settled by your customer's payment of the underlying invoice. If the customer does not pay, recourse terms decide whether you must buy the invoice back.
Costs, risks and terms to verify: Verify the advance rate, the discount or service fee per invoice, which customers and invoices are eligible, and whether the facility is with or without recourse to you.
What it may work alongside: Can reduce reliance on an overdraft; often combined with trade finance when the invoices come from export sales.
What it may be a poor fit for: Businesses paid in cash on delivery, or invoices to customers with weak payment records.
Questions to ask the bank or provider: Which of my customers' invoices will you accept, and at what advance rate?
Is the facility with recourse — what happens if a customer never pays?
What is the total fee per invoice, including any minimum charges?

Alternative financing Illustrative demo data — not a live provider offer

Factoring and receivables purchase

Selling your invoices to a factoring provider: they buy the receivable, collect from your customer, and advance you most of the value upfront. Terms are provider-specific and differ from bank invoice financing.

Unpaid invoices

What it is: Selling your invoices to a factoring provider: they buy the receivable, collect from your customer, and advance you most of the value upfront. Terms are provider-specific and differ from bank invoice financing.
The business need it can address: Immediate cash from unpaid invoices, sometimes including handing over collection of those invoices entirely.
How it works in the business: The factor buys approved invoices at a discount, advances you most of the value, and collects payment from your customer directly. Your customer usually knows the factor is involved.
How repayment, settlement or ownership works: Settled when your customer pays the factor. With recourse factoring, unpaid invoices come back to you; without recourse, the factor bears the credit loss — at a higher price.
Costs, risks and terms to verify: Verify the discount rate and service fees per invoice, recourse versus non-recourse terms, which invoices are eligible, and how your customers will be treated during collection.
What it may work alongside: Can replace or supplement bank receivables financing; an overdraft may still cover the gaps factoring does not.
What it may be a poor fit for: Businesses whose customer relationships would be strained by a third party collecting, or margins too thin for the discount.
Questions to ask the bank or provider: Is this with or without recourse, and what exactly comes back to me if a customer defaults?
What is the full cost per invoice, including service fees?
How will your team communicate with my customers when collecting?

Bank facilities Illustrative demo data — not a live provider offer

Overdraft and revolving credit

A standing credit limit on your business account that you draw on when cash is short and repay when it comes in. You pay for what you use, when you use it.

Cash-flow gapsUnpaid invoices

Alternative financing Illustrative demo data — not a live provider offer

P2P financing

Debt financing raised through a licensed peer-to-peer platform: many investors fund your financing request, and you repay with profit or interest over an agreed term. It is debt — it must be repaid.

Growth funding without a standard bank loanCash-flow gaps

How the tools may work together

An educational example built from your answers — not a recommendation, a ranking, or an approval decision.

Primary route to explore

Invoice and receivables financing

Cash tied up in invoices issued to creditworthy customers who pay in 30, 60 or 90 days.

Supporting route to compare

Factoring and receivables purchase

Immediate cash from unpaid invoices, sometimes including handing over collection of those invoices entirely.

Watch out for: If a key customer's invoices are ineligible or the facility is with recourse, the cash gap returns the moment that customer pays late.

Next questions

Which of my customers' invoices will you accept, and at what advance rate?
Is the facility with recourse — what happens if a customer never pays?
Is this with or without recourse, and what exactly comes back to me if a customer defaults?

Which financing tools does your business already use? · Optional — skip if you like

A match is not an approval or a promise of eligibility. The provider decides.