Invoice factoring.
Funding and collections together.
For established companies considering £500,000+ ongoing B2B invoice facilities with provider-led credit control. Compare usable funding, customer contact and the full service commitment.
Discuss an invoice factoring facilityNBS Funding is operated by NBS Finance. Commercial finance broker and introducer, not a lender. No client broker fee.
Invoice factoring combines advances against eligible B2B invoices with provider-managed collections. In a disclosed facility customers know where to pay. Agree who contacts each customer and how disputes and overdue debts are handled.
Release invoice cash before customers pay
Eligible invoice finance can release up to 95% of invoice value, often within 24 hours of submission once a facility is set up, instead of waiting 30–60 days for the customer to pay. Advance rates, eligibility and drawdown timing depend on the provider, ledger and facility terms.
For example, Ultimate Finance publishes an invoice product with up to 95% advances and payment within 24 hours of receiving invoices after setup. This is provider product information, not an NBS offer or a guarantee for your factoring facility. Reserves, customer limits, drawings and charges determine usable cash.
Two services to assess, not just an advance rate
- Raise eligible invoices
Supply the goods or services, evidence completion and notify invoices in line with the agreement.
- Calculate availability
The provider applies eligibility, payer limits, advance rates, reserves and the facility ceiling.
- Collect payments
Provider-led credit control follows agreed arrangements; your team still resolves commercial disputes and keeps records accurate.
- Release the balance
Customer receipts clear drawings and charges. Remaining balances become available under the facility terms.
A larger established company may choose factoring because outsourced collections fit its operation. It is not exclusively a small-business product. Customer relationships, reporting quality and provider service standards deserve as much scrutiny as the funding headline.
Which collection and funding model fits?
| Model | Collections and disclosure | Commercial fit |
|---|---|---|
| Disclosed ongoing factoring | Provider handles credit control; customers are told about payment arrangements. | A continuing eligible B2B ledger and a business that wants collections support. |
| Confidential invoice discounting | The business normally retains credit control; confidentiality depends on the agreement and circumstances. | A capable in-house finance team wanting funding while managing the ledger. |
| Selective or single-invoice finance | Scope and collection arrangements depend on the contract. | An occasional requirement may need a different structure; ongoing factoring is not automatically cancellable invoice by invoice. |
Check the assignment scope: it may cover an agreed ledger or customers and associated invoices. Do not assume you can fund one invoice while leaving other invoices to the same debtor outside the arrangement. Confidential factoring also exists in the market; the disclosed model on this page is a specific operating choice.
A £1m facility can offer much less fresh cash
- Notified debtor ledger
- £1,000,000
- Ineligible invoices
- − £150,000
- Eligible ledger
- £850,000
- Illustrative advance: 85%
- £722,500
- Separate concentration reserve
- − £50,000
- Existing drawings
- − £550,000
- Additional availability before charges
- £122,500
Assume the £1m facility ceiling permits the calculated advance, the £50,000 reserve is additional and has not already reduced eligible debt, and no further caps apply. The £127,500 balance withheld by the 85% advance is not deducted again. All figures are hypothetical, not NBS terms.
Collections and charges change availability daily. Funding is normally repayable under the agreement if invoices become ineligible or customers do not pay. Optional bad-debt protection has its own limits and exclusions; factoring does not automatically transfer every non-payment risk.
Price the service and test the ledger
| Cost or condition | Question to settle |
|---|---|
| Service charge and minimum | Which turnover or invoices are charged, and what annual/monthly minimum applies? |
| Discount charge | Is it an all-in rate or a margin over a reference rate? On what daily balance and with what floor? |
| Additional charges | Are audits, debtor protection, payments, legal work, renewals or transfers charged separately? |
| Term and exit | What minimum period, notice, termination charge and security release apply? |
- Aged debtor ledger, customer concentrations, invoice values and payment history.
- Credit notes, disputes, proof of delivery/completion and relevant customer terms.
- Accounts, management information and forecast turnover/working-capital requirement.
- For an existing facility: statements, agreement, fees, notice dates and current security.
New facilities require eligibility and operational checks. For a provider switch, compare transition cost, overlap, customer payment redirection and security release before giving notice. Improving an incumbent arrangement may be preferable. Use the facility-review and cost-comparison tools for that separate decision.
Questions before proceeding
Does factoring mean customers know a funder is involved?
With disclosed factoring, yes. Confirm notices, payment details, contact style and complaint escalation. Confidential factoring arrangements differ and require their own assessment.
Does factoring cover every invoice or customer?
No. Disputes, ageing, credit limits, concentration, exports, consumer debts and contract terms can affect eligibility. The scope is set by the provider and agreement.
Is the retained balance another fee?
No. The portion not advanced initially is different from service and discount charges. Understand when the balance is released and which deductions or reserves may still apply.
Provider material describes that provider’s product. It does not establish an NBS relationship, current case acceptance or an offer. Examples on this page are hypothetical. Prepared by NBS Funding, operated by Isaac Powell trading as NBS Finance.
Bring the requirement.
Understand the next step.
No financial documents needed to begin. Provider assessment and terms apply.