Invoice Finance for Creative Agencies

The cash problem in a creative agency is structural. You buy a media schedule in week one, pay freelancers in week two, deliver in week three, invoice in week four, and collect in week eight. That gap is 60 to 90 days of working capital tied up in paper. Invoice finance releases it.\n\nThe mechanic is simple. You raise a client invoice, submit it to the funder, and they advance you typically 80 to 90% of the face value the same day. When your client pays, the funder takes their advance back plus a service charge and a discount fee (the fee accrues daily, so the faster your clients pay, the cheaper the facility). You collect the remaining 10 to 20% as your reserve.\n\nWe do not place creative agencies with the high-street invoice discounters who want manufacturing debtors on 30-day terms. We go to funders who understand phased project billing, milestone sign-off, and the reality that a £200k integrated campaign might be billed in three tranches. Confidential invoice discounting keeps the funder invisible to your client. CHOCS (Client Handles Own Collections) structures keep you in charge of the credit control relationship. We decide which structure suits you before we approach any lender, not after.\n\nMedia pass-through is the question we get most. Recharged ad spend goes in at full invoice value in most facilities, though a handful of funders will want evidence the client has approved the spend. We flag that before drawdown.\n\nOne thing to be straight about: the advance rate and discount fee are set by the lender after they assess your debtor book and client concentration, not by us and not in advance. A single client making up 60% of your billings will concern most funders. We will tell you that at the first conversation rather than after you have signed a heads of terms. We are a broker; we get you in front of the right funder and price the options, but the lender makes the credit decision.