Invoice finance FAQs

We arrange invoice finance from funders who advance a large share of the invoice value. The amount varies by funder. Learn more about invoice financing vs invoice discounting.

By selling your unpaid invoices to a funder through our brokerage services, you receive a percentage of the invoice value. Once your customer pays, the funder releases the remaining funds after deducting their fees, ensuring immediate cash flow to manage business expenses. Discover the detailed process in our guide on the invoice factoring process.

We look at your customers' creditworthiness and the quality of your invoices, then arrange options from funders who may be able to help. Any decision is the funder's.

Funders typically charge a service fee, a percentage of invoice value, and a charge on the money advanced. Some also charge set-up or other fees. Guavas does not charge you a fee; the funder pays us commission. See our commission disclosure for how it works.

It depends on the funder and how soon your invoices and agreement are approved. Some funders can pay out in as little as 48 hours.

No. Plenty of healthy, growing businesses use invoice finance simply because their customers take a long time to pay. Many established businesses use it as a normal way to manage the gap between invoicing and getting paid. Using it does not in itself signal trouble.

Bad credit does not have to rule you out, because the main risk a funder weighs is whether your customers will pay. Final decisions are always the funder's.

Invoice finance provides quick access to cash, helps maintain steady cash flow, reduces the risk of bad debts, and offers flexibility in financing options. Partnering with Guavas Finance ensures you find the best financing solutions tailored to your business needs. Check out our invoice finance case studies for real-world examples.

Eligibility depends on factors such as the creditworthiness of your customers, the quality of your invoices, and your business’s financial health. We assist you in evaluating these factors and finding the right funder for your situation.

Consider the funder’s reputation, fees, customer service, experience with businesses similar to yours, contract terms, and flexibility in financing options. We help you weigh these factors against the funders on our panel. For more guidance, see our article on choosing the right factoring company.

Invoice financing involves selling your invoices to a funder who collects payments directly from your customers. Invoice discounting uses your invoices as collateral for a loan, allowing you to retain control over the collection process. Guavas Finance helps you understand the benefits of each option and choose the one that best suits your business. Learn more about invoice discounting as an alternative funding.

Single invoice factoring offers immediate cash flow for specific invoices without long-term commitments. This flexibility is ideal for businesses with occasional cash flow gaps. Read more about the advantages of single invoice factoring.

The process includes submitting an application, undergoing credit checks, and receiving an advance on the invoice value. We guide you through each step, ensuring a smooth and efficient process. For detailed steps, visit our guide on the invoice factoring process.

Invoice factoring often provides more funding and flexibility than traditional overdrafts. It is based on your sales volume rather than a fixed limit, and you receive funds as invoices are issued. We help you understand these differences and find the best solution for your business. Compare the options in our invoice finance vs. overdrafts guide.

Maintain steady cash flow to invest in growth opportunities, negotiate better terms with suppliers, and manage your operations more efficiently. We support you in using invoice finance to achieve your business goals. Learn more about maximising your business potential.

It converts accounts receivable into immediate cash, helping businesses meet financial obligations, invest in growth, and avoid cash flow interruptions. Explore more about how invoice factoring can improve cash flow.

Pros include improved cash flow, reduced bad debt risk, and flexibility in financing. Cons may include costs associated with fees and potential impacts on customer relationships if the factoring company handles collections. We help you weigh these factors and make the best decision for your business. For more insights, see our article on the pros and cons of invoice factoring.

Regularly review your finance agreements, assess the associated costs, and compare them with other providers to ensure you are receiving the best terms and value. We provide expert guidance in reviewing and optimising your invoice finance arrangements. For more information, visit our guide on reviewing your UK invoice finance facility.