Frequently asked questions

Invoice finance is a simple and effective solution for businesses to improve their cash flow by being paid upfront on their outstanding invoices for a small discount.

Invoice finance primarily suits businesses that often find they have a lot of cash tied up in long payment terms however, the speed and flexibility it offers makes it a great way for any company to boost their working capital.

Our customers choose us here at Funding Invoice because of multiple reasons but, the key ones to note
are:
1. Flexibility
– Raise finance against individual invoices, no need to put forward your whole sales ledger
– We have no minimum usage requirements and no minimum contract lengths – totally “pay as you go”
2. Speed
– Our simple online platform means you can receive a sign-up response within 24-48 hours
– Once approved on our system you can receive funds on invoices the same day they are raised
3. Transparency
– Know what you’re paying on each invoice upfront before you receive funds with no hidden costs
– Our platform  is available to access 24/7 and your client account manager is always be on hand to answer
any queries

We carry out a quick but necessary process to assess if we can fund you. We do not, however, run any checks against your personal credit file.

Funding Invoice is an online market place platform. It’s easy to use, you can upload all the documentation
required quickly on the platform. The documentation required is basic: proof of ID, proof of address,
company financials.

Once you company has been approved for funding you will be able to submit your invoices to your client
account manager. From here they will be verified by one of the team and funds released to you within 24
hours.

We verify the details of each invoice by speaking with your customer and agreeing the accuracy of the
information, such as the invoice value, payment term, invoice date, etc.

We do not have minimum or maximum invoice value criteria. We do have a minimum fee, however, of
£250. This fee is applied per transaction not per invoice so, you can pool smaller invoices together to
maximise each trade.

Not at all, unlike a factoring service we don’t take over your whole sales ledger, with Funding Invoice you
simply pick the invoices you would like to raise finance against and we’ll do the rest!

Yes, this is not a problem! As long we can complete our verification process, we will be happy to fund any
current invoices. Usually, the first invoices that a business funds through Funding Invoice have been issued
already.

Generally, we can advance up to 80-85% of your invoice value but, it is not necessary to receive the full
amount so, for example, if you only require 50% that is absolutely fine.

We would only ever approve an invoice that our investors would be happy to fund so, if your invoice
reaches the verification stage, there is no reason why it would not be funded.

Yes, around 35% of the invoices we fund are for export.

Yes, we do. However, this is a process led by you and can be done confidentially, too. The verification
process is a simple contact to confirm that the invoice details are correct and it is not fraudulent. If you
have an online vendor portal, we can verify by checking the details on there instead.

The only fee we charge is a percentage of the invoice value. Determined by the creditworthiness of your
customer and the length of borrowing, it generally works at 2.5% for 30 days, 3.5% for 60 days and 4.5% for
90 days. There are no other sign-up or monthly fees; you’ll know exactly how much you’re paying up front
before you receive funding.

It certainly can! If you have some extra cash and want to pay your invoices early yourself that’s absolutely
fine, in fact, the fee will actually be pro-rated downwards to compensate you for repaying early.

At Funding Invoice we understand not everyone pays on time so, if your invoice is paid late, you are only
charged at the same average daily rate. The only exception is if it is extremely late, then further late fees
may apply.

We do require that the invoice payment is made direct to Funding Invoice however, we won’t ever chase
your clients for payment on your behalf, we prefer to leave you in control of your customer relationships.

Invoice finance is not currently an activity regulated by the FCA. Funding Invoice does not invest any capital
into invoices itself or on behalf of any third parties, neither does it take client deposits or give any
investment advice.

No – Funding Invoice has no requirement to be VAT registered.

Our investors are sophisticated, high net worth individuals or institutional.

It usually takes around 2-3 days to get signed-up. Once your invoice(s) are verified, we say to allow 48
hours for funds to arrive but, they will usually be there within 24 hours.

Each case is treated individually. We like to fund UK based, LTD or LLP, businesses with a turnover at least
£100k and 6 months trading history. What is more important, however, is the quality of your customers.

We rarely take charge over a company’s assets, all of the loans we provide are backed against the invoices
you raise.

The annual yield return is 8-12%. Our historical average yield is 10.6%.

The minimum initial deposit is £50,000

We only work with self-certified high net-worth, sophisticated and institutional investors. For the avoidance
of doubt, we do not work with retail investors.

If you would like to apply, fill out our investor application form here, or give us a call on 020 3675 0699.

KYC due diligence is conducted for all investors and SMEs at on-boarding. For investors, we require:
company/fund registration certificate, source of funds information, proof of ID for directors/financial
controllers of the fund and financial accounts (or equivalent) for the fund itself.

Investor funds are held in client funds accounts hosted by Barclays. Investor funds never flow through our
own financial accounts.

Uninvested funds can be withdrawn from investor accounts at any time free of charge, and the request is
usually processed same-day however, we ask to allow three working days for transfer of funds. Funds that
are deployed into invoices cannot be withdrawn until the invoice has been repaid which is, on average, in
60 days.

We conduct various credit, identity, AML and compliance checks on our SME customers as well as their
debtors. Additionally, we verify each invoice that we fund by speaking directly with the end-customer who
is due to pay the invoice. We ensure that goods have been delivered satisfactorily and that payment is
going to be made directly to Funding Invoice. We also rigorously analyse bank statements which are cross-referenced
with an SME’s management accounts for accuracy and validity.

Investors can invest in a manual or auto-invest way. Manual investors will be given a portfolio of
investment where they are able to choose invoices based on their preferences. With auto-invest, once an
investor has determined their investment criteria, our platform works to maximise each investor’s
deployment in line with that criteria. For example, an investor may decide that they would like to invest
across all risk bands but no more than 5% of their total investment into any one invoice. These investment
criteria are bespoke to each investor. Alternatively, an investor may choose to invest no more than £2000,
for example, into any given invoice.

No, any given invoice will be funded by multiple investors so that no one investor is overexposed to a
trade. In your auto-invest criteria you may opt to only have £1k invested into any given invoice, for
example.

Funding invoice strives to keep undeployed funds as small as possible. Funding Invoice’s historical
deployment rate is 95%.

We have built a credit model which utilises a credit matrix which ranks the businesses and their customers.
Various factors affect the risk assigned to an SME ranging from a number of financial ratios to whether or
not the director has given a personal guarantee and their directorship history. We also use credit reports
from a UK credit rating agency.

Funding Invoice works with businesses across a broad range of sectors. We have a bespoke credit model
which has been designed to determine whether a seller is creditworthy enough to upload invoices on our
platform. A checklist is completed on each company, assessing the directors themselves as well as the
business. The factors taken into consideration range from how long the company has been trading and the
spread of its customers to its profitability, liquidity, and debt ratios.

We receive regular financial updates from our clients. We are also in regular contact with the debtors of
the invoices.

The UK suffers from a late payment culture where, to a corporate company, 30 days often doesn’t mean 30
days. Investors are compensated for every day that their funds are deployed and interest is pro-rated
when invoices are late.

There is full recourse to the SME client who would be required to repay the loan out of their own cash flow.
When an SME signs up, we analyse their filed accounts, bank statements and management accounts to
assess their capability to repay loans if required. Only those businesses that we deem to be able to do this
are approved. Additionally, we only lend up to 20% of a business’ turnover to ensure that they have
sufficient revenue to be able to repay us if required.

Our write-off and default rate are both 0% to date.

Our online platform gives 24 hour access to your investment portfolio. Once registered you will be able to
view current and historical investments at any time.

We provide full statements on a monthly or quarterly basis dependent on your needs.

Funding Invoice does not charge investors any fees at all.

We charge SMEs a fee on each invoice they fund through our platform. No other fees are taken from
sellers (i.e. there are no monthly, subscription or listing fees). A typical fee structure could be 2.75% of an
invoice’s values for 30 days, and then 1% for each 30 days thereafter.

Investors will only receive interest on deployed funds.

Our historical average advance rate is 77% of invoice value. For example, for an invoice of £100,000, we
would provide £77,000 as an advance.

Currently we only offer to fund invoices in sterling. All our clients UK-based, limited companies or LLPs.
Many of our customers are exporters, however we use spot-rates to determine how much we lend against
an invoice. When an invoice is paid, the SME bears the currency risk.

Funding Invoice takes Data Protection very seriously and is fully compliant with the Data Protection Act
1998 which governs use of personal information.

Invoice finance is not currently an activity regulated by the FCA. Funding Invoice does not invest any capital
into invoices itself or on behalf of any third parties, neither does it take client deposits or give any
investment advice.

We endeavour to reduce risks to investors. However, investing in any investment product places your
capital at risk and your returns will vary depending on your personal risk profile.