How Does Cashflow Finance Work?
Cashflow finance allows your business to access the value of your unpaid invoices before your customers pay. Instead of waiting 30, 60 or 90 days for payment, a finance provider advances a percentage of the invoice value — typically within 24 hours — giving you the working capital to cover wages, suppliers, and day-to-day costs.
As a credit broker, not a lender, Balanced Funding Solutions searches across our panel of UK providers to find the most competitive arrangement for your business. We handle the introductions and paperwork, so you can focus on running your business.
“Cash flow is the lifeblood of any business. I have seen profitable companies struggle simply because their customers take too long to pay. Invoice finance bridges that gap and gives business owners the breathing room they need to invest and grow.”
Types of Cashflow Finance
There are several ways to improve your business cash flow. The right option depends on your turnover, the number of invoices you raise, and how much control you want to retain over credit collection.
Advance cash against your unpaid invoices while retaining full control of your sales ledger and credit collection. Your customers deal with you as normal and may not be aware of the arrangement.
The finance provider advances cash against your invoices and also manages your sales ledger, chasing payments on your behalf. Ideal if you want to outsource credit control.
Finance individual invoices on a one-off basis rather than committing to a whole-ledger facility. Useful for occasional large invoices or project-based work.
A lump-sum loan or revolving facility to cover short-term cash flow needs, payroll, stock purchases, or seasonal fluctuations. Not tied to specific invoices.
Quick Comparison
A side-by-side look at how the main options compare on the factors that matter most.
| Feature | Invoice Discounting | Factoring | Spot Factoring | Working Capital Loan |
|---|---|---|---|---|
| Confidential? | Yes | Usually no | Varies | N/A |
| Credit control | You manage | Provider manages | Varies | N/A |
| Advance rate | 70-90% | 70-90% | 70-85% | Lump sum |
| Commitment | Whole ledger | Whole ledger | Per invoice | Fixed term |
| Setup speed | 1-2 weeks | 1-2 weeks | Days | Days to weeks |
| Best for | Established businesses | Outsourcing credit control | Occasional large invoices | General cash flow needs |
Invoice Discounting
Factoring
Spot Factoring
Working Capital Loan
Who Can Apply?
Cashflow finance is available to a wide range of UK businesses. While each provider has its own criteria, the general requirements are:
- UK-registered business trading on credit terms (B2B invoices)
- Minimum turnover (varies by provider, typically from £50,000+)
- Creditworthy end customers (the provider assesses your debtors)
- Invoices are for goods or services already delivered
- No significant disputes or credit note history on invoices
If your business is newer or your debtor book is concentrated with a small number of customers, it is still worth speaking to us. We work with providers who understand a range of business profiles.
“The best thing about invoice finance is that it grows with your business. The more you invoice, the more funding is available. It is one of the few forms of finance that naturally scales with turnover.”
How It Works
Getting cashflow finance through Balanced Funding Solutions is straightforward. Here is what to expect at each stage.
Get in Touch
Tell us how much you need and what the finance is for. Online form, phone, or email.
We Search
We compare options across our lender panel for your budget and credit profile.
Your Options
Full transparency on rates, terms, and fees — no obligation to proceed.
Completion
We handle the paperwork. Funds typically released within 24–48 hours.
Cashflow Finance Calculator
Estimate how much working capital you could release. Adjust the figures to match your invoicing.
For illustration purposes only. This calculator provides an estimate based on the figures you enter. Your actual rate will depend on your individual circumstances, credit profile, and the lender’s criteria. Balanced Funding Solutions is a credit broker, not a lender.
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Frequently Asked Questions
Improve Your Business Cash Flow Today
No obligation, no impact on your credit score. Tell us what you need and we will do the rest.