Invoice Factoring can give your business earlier access to cash, steadier cashflow, and fewer late-payment problems. It releases value from unpaid invoices and adds credit-control support, giving you both funding and operational help to keep moving.
Invoice Factoring is flexible business funding that improves cashflow by unlocking money already sitting in unpaid invoices.
Instead of waiting 30, 60, or even 90 days for customer payment, Invoice Factoring can release up to 85% of invoice value, often within 24 hours of issue. This gives faster funding, steadier cashflow, and less time lost waiting. When the customer pays, the remaining balance is released after agreed fees.
Unlike a traditional business loan, Invoice Factoring is based on revenue already earned. There is no additional borrowing, no fixed repayment schedule, and available funding can grow with sales.
UK SMEs spend about nine hours a month following up on payments, and late payment is still a major issue. Sixty-two percent wait longer for payment than they did a year ago, while the average business is owed around £67,000 in unpaid invoices*.
That time and money could instead support growth, customers, or daily operations.
Funding is only one part of the service. Our dedicated credit control team manages your sales ledger and collects payments for you, helping reduce the administration involved in late-payment follow-up.
If you would rather focus on moving the business ahead than collecting payments, Invoice Factoring may be the right fit.
Invoice Finance is generally split into two options: Invoice Factoring and Invoice Discounting. Both can improve cashflow by giving faster access to funds, but the usual distinction is:
Invoice Factoring - our credit control team collects outstanding invoices on your behalf, giving you more time to run the business
Invoice Discounting - you continue to handle invoice collection and customer relationship management.
Rather than waiting for customer payment, Invoice Factoring helps put money already earned to work efficiently and sooner.
Invoice Factoring unlocks money already earned but still sitting in unpaid invoices, helping avoid the extra debt often required by other funding options.
Invoice Factoring is an adaptable funding option that can scale with your business. As invoice volume increases, available funding can increase too.
Client example: Veromia
Veromia, a British wholesaler of occasion and bridal wear, has relied on Invoice Factoring for several years to keep cashflow dependable and manage seasonal peaks more flexibly. The funding supports daily operations, relationships with suppliers and retailers, and the team’s ability to develop collections without reducing service quality.
Many businesses need help collecting payments because it can take valuable staff time. Our credit control team collects outstanding invoice payments for you, freeing more time to run the business. If preferred, the service can also be provided confidentially.
Many businesses that use Invoice Factoring also add Bad Debt Protection. In a challenging economy where bad debt can rise, this works alongside Invoice Factoring to reduce the impact if customers fail to pay invoices.
With Invoice Factoring, our credit control team collects outstanding invoices for you. With Invoice Discounting, you retain responsibility for collections and customer relationships.
Independence and experience allow the approach to be tailored. When others cannot help, we look for a practical way forward.
Business is personal, so we learn each client’s needs. You know who in the team to contact, rather than only having a general number.
We support more than 8,500 clients worldwide and hold an Excellent Trustpilot rating. Membership in financial associations, including UK Finance, reflects a commitment to high standards and best practice built over more than 40 years supporting SMEs.
As an independent Invoice Finance specialist, we have received multiple awards. Most recently, Business Moneyfacts named us "Best Factoring and Invoice Discounting Provider" for the second year in a row, reflecting a continued focus on customer experience.
We have supported businesses across sectors for more than 40 years…
These answers cover common Invoice Factoring questions to help you judge whether it fits your business.
Invoice Factoring helps businesses turn unpaid customer invoices into earlier working capital.
Instead of waiting 30, 60, or even 90 days for payment, you can access around 85% of the invoice value within 24 hours of raising it. This makes cash available sooner for business needs and strengthens cashflow.
Invoice Factoring closes the gap between issuing an invoice and being paid. For many SMEs, it supports growth without relying on a long borrowing history or taking on bank-loan debt.
Invoice Factoring and Invoice Discounting are the two main forms of Invoice Finance.
Invoice Factoring can provide flexible funding that smooths cashflow and grows with sales, without the extra debt associated with a traditional bank loan.
Invoice Factoring is a strong fit if:
It may be less suitable if:
If you want your team focused on growth rather than payment collection, Invoice Factoring may be the right solution.
Unlike traditional finance such as business loans, Invoice Factoring is based on money already earned. There is no additional borrowing, no fixed repayment schedule, and funding grows with sales.
Invoice Factoring can support businesses by providing:
The first step is simply to talk with us. Complete the short form and a team member will call you back.
After an initial suitability review, a dedicated Business Development Manager will guide you through the application process.
We take time to understand your business, growth plans, and current challenges. From there, we can assess whether Invoice Factoring fits and outline options clearly, with no obligation.
You will typically provide basic business information, an aged receivables report, details of key customers, and recent financial accounts if available.
Our relationship-focused approach means we learn your needs and tailor the facility to your goals when Invoice Factoring is a fit. Our independence and flexibility mean we can often support cases others cannot.
Approval can often be achieved within a few days.
Full setup usually takes one to two weeks depending on complexity, with a dedicated Business Development Manager supporting each onboarding step.
Once live, funding against new invoices is typically available within 24 hours of issue.
With Ozmis, you can typically access up to 85% of your invoice value within 24 hours once the facility is active, releasing working capital to keep the business moving. Setup timing depends on the information available, but clients have been onboarded in as little as two days, and the team moves as quickly as your needs require.
Invoice Factoring releases working capital from invoices and uses money the business has already earned. You receive a percentage, usually around 85%, when the invoice is issued, then the remaining balance after customer payment and agreed fees. Because it follows invoice volume, it can grow with the business. For comparison, business overdrafts and loans usually include:
Overdraft
Loan
Funding can increase as the business grows. The more you invoice, the more working capital may become available, making Invoice Factoring flexible and scalable. You can typically access up to 85% of your invoice value. The final amount depends on sector, debtors, and other factors, so it is best to speak with our team for a tailored quote.
Our Q1 survey of 1000 SMEs found that 30% had experienced bad debt in the previous year, an increase from the prior survey.
Many businesses using Invoice Factoring also choose Bad Debt Protection so they can still receive payment if customers cannot settle invoices. It helps protect the business against non-payment when customers are unable to pay.
You can learn more on the Bad Debt Protection for Invoice Finance page.
Depending on how much overseas trade you do, a specialist Export Finance solution may fit better. It is designed for exporters and can bridge the gap between invoicing and payment while helping manage overseas customer relationships.
Foreign Exchange services can also support international trade and reduce currency fluctuation exposure.
This depends on the Invoice Factoring option chosen. With Confidential Invoice Factoring, customers do not know. With a disclosed facility, customers know the business is funded through Invoice Factoring. In either case, Ozmis handles collections professionally so you can focus on the business.
Yes. By improving cashflow, Invoice Factoring can help you take on larger contracts, hire staff, invest in stock, and expand operations with less concern about delayed payment. Many SMEs use it to open up growth opportunities.
Invoice Finance can help businesses improve cashflow, build working capital, and invest in future growth.
* SME Confidence Tracker, Q1 2026
