Invoice Finance in Birmingham

How invoice finance works

There are two common forms. With factoring, the lender advances a share of each invoice when you raise it and then manages collection from your customer, which can suit smaller Birmingham firms without a dedicated credit-control function. With invoice discounting, you keep collecting yourself and the facility stays confidential, which usually suits more established businesses with their own ledger management. In both cases the lender advances a proportion of the invoice value up front, often a large share, and releases the balance, less their charge, once your customer pays. The facility grows as your sales grow, which is why it fits expanding manufacturers and wholesalers whose working-capital need rises with turnover. The advance rate, the charge and the structure depend on your ledger, your customers and the lender, so we avoid quoting fixed figures up front.

What Birmingham lenders look at

For invoice finance, lenders underwrite your sales ledger as much as your business. They look at who your customers are and how creditworthy they are, how your invoices are raised, how concentrated the ledger is on a few big accounts, and how clean your collections history looks. A Birmingham engineering supplier invoicing a handful of large, blue-chip automotive or manufacturing customers on standard terms is a strong ledger; a business with lots of disputed invoices, long-overdue debt or heavy reliance on one customer is harder and may be offered a lower advance rate or a more managed facility. Sectors with retentions or stage payments, such as some construction sub-contracting around the Digbeth and Smithfield sites, need a lender comfortable with that billing pattern. We match your ledger to lenders whose appetite fits your customer base and sector, and being ready with an aged debtors report helps move it along.

Why bring the deal to CoreFi

The invoice finance market is more varied than it looks: high-street banks, independent specialists, and funders who focus on particular sectors, ledger sizes or billing patterns. The provider who suits a straightforward wholesale ledger is often not the one who will fund construction applications-for-payment or a debtor book concentrated on one large customer. Approaching them one by one is slow, and it is easy to end up on a facility that is more expensive or more restrictive than it needed to be. We hold that criteria detail across our panel, so we can focus your case on the lenders most likely to fund your ledger at a sensible cost and on terms that suit how you actually trade, and we can help you compare the total cost properly rather than just the headline rate. We cannot promise an advance rate or an approval, because those sit with the lender, but we can match the deal well and present your ledger clearly.

Frequently asked questions