What is invoice financing? How to get paid before your customers pay
By SendPay Business · · 2 min read
- 1Add what you sold and the prices
- 2Send it in one tap
- 3It shows paid when the money is in
Invoice financing lets a business get cash from invoices its customers haven't paid yet. A finance provider advances most of the invoice value straight away and pays the rest, minus fees, once the customer pays.
Factoring vs discounting
Tap to explore
Tap each one to see what it means.
Invoice factoring
the provider takes over collecting payment from your customers, so they know you're using finance.
Invoice discounting
you keep collecting payments yourself, and your customers usually don't know.
What it costs
Providers charge a service fee, often a percentage of turnover, plus a discount charge that works like interest on the money advanced. There may also be set-up, exit or minimum fees, so compare the total cost.
Try it
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Colour
What it does
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When it helps
It suits businesses that sell to other businesses on 30, 60 or 90-day terms and need cash sooner. It's less useful if most customers pay at once by card or payment link.
Where SendPay fits
SendPay doesn't offer invoice financing. SendPay platforms let your customers send invoices and payment links under your own brand so they can get paid sooner, powered by licensed partners.
How it works
Your own money app- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
Why sign up
Create your free SendPay account
It's all about creating your own financial platform with ease. Start with a free account today.
- 🪪A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
- 💳Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
- 🌐A free business websiteFree to build, free to publish and free to keep, with unlimited visits.
- 🚀Your own financial platformDesign and preview your whole platform free, then launch when you are ready.
SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
Questions people ask
How much cash is tied up in my business?
Work out working capital and your current ratio.
Working capital calculator →Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.