1. How to Compare
Quotes
Invoice Finance

2. How to Compare
Invoice Finance
Quotes
Service Charge
Discount Rate
Admin Fees
Legal Fees
Facility Size
Pre-payment or Early Payment Charge

3. How to compare Invoice Finance quotes
www.comparefunding.com/invoice-finance
Introduction
So you’ve decided invoice finance is the way
forward for your business to release some of the
much needed working capital you have tied up in
unpaid invoices, but what next?

4. How to compare Invoice Finance quotes
www.comparefunding.com/invoice-finance
Introduction
Well, the market is thriving which means there are
many options to explore, but navigating that
market and all the different lenders with their
different criteria, costs and benefits, is no easy
task.

5. How to compare Invoice Finance quotes
www.comparefunding.com/invoice-finance
Introduction
You may already know this but comparing Invoice
Finance quotes is not a straight forward task as
you’re unlikely to be comparing like with like.
It’ll also depend whether you’re looking for
factoring or invoice discounting. But we are going
to go through some general points you should
consider when getting a quote.

6. How to compare Invoice Finance quotes
www.comparefunding.com/invoice-finance
Company
ABC
Customer
XYZ
Invoice
Financier
(I/F)
ABC completes goods or
services, raises a sales
invoice and sends it to
XYZ.
We’ll say it’s for £1000
for this example
1
ABC then sends the
invoice to the I/F
2
The I/F makes a
% of the invoice
available. For
example £800 3
The I/F releases
the balance
minus charges.
£190 in this
example 5
XYZ pays the whole
invoice value, direct to the I/F.
4
A quick reminder:
A simplified view of
Invoice Finance

7. Areas to consider

8. How to compare Invoice Finance quotes
www.comparefunding.com/invoice-finance
Service Charge
This is the percentage of each invoice that the
lender will keep in exchange for the service and
will vary between providers.
It is also usually subject to a monthly minimum
threshold which again will vary between
companies.

9. How to compare Invoice Finance quotes
www.comparefunding.com/invoice-finance
Discount Rate
This is an annual rate applied to the funds
borrowed from the facility.
Although it’s not technically interest, it works in the
same way as interest rates applied to standard
overdrafts.

10. How to compare Invoice Finance quotes
www.comparefunding.com/invoice-finance
Admin Fees
Administration or set up fees are usually charged
to get a facility in place. It is generally a one-off fee
and again varies widely between lenders.

11. How to compare Invoice Finance quotes
www.comparefunding.com/invoice-finance
Legal Fees
There could be various fees, for example, if
independent legal advice is required, and security
fees for registering a charge at Companies House.

12. How to compare Invoice Finance quotes
www.comparefunding.com/invoice-finance
Facility Size
Different lenders will offer different facility ceilings
depending on their credit policies. So while one
may be cheaper, that financer may not be able to
provide you with all the cash for your needs; but a
more expensive one might.

13. How to compare Invoice Finance quotes
www.comparefunding.com/invoice-finance
Pre-payment or Early payment
ChargeThis is the general term for the amount of money a
third party will advance straight away on the back
of an invoice. This again varies widely depending
on a lender’s appetite for risk. It could be as low as
50 per cent, or as high as 90 per cent.

14. How to compare Invoice Finance quotes
www.comparefunding.com/invoice-finance
Compare Funding
At Compare Funding we will search the market
and find the best deal for you based on the needs
of your company.
We offer our quotes for free with no obligation.

15. Use Compare Funding
to get an Invoice Finance
quote today
www.comparefunding.com/invoice-finance