Invoice Finance Scotland: Stop Waiting 90 Days to Get Paid
If your cash is tied up in unpaid invoices while your customers take their time paying, Invoice Finance could be the most straightforward solution you have not yet considered. Here is everything you need to know, and how Fraser Finance Solutions helps businesses across Scotland access it.
What Is Invoice Finance?
Invoice Finance is a funding solution that lets businesses unlock the cash sitting in their unpaid invoices, without waiting 30, 60 or 90 days for customers to settle up. A lender advances you the majority of the invoice value upfront, typically between 80% and 90%.
The remaining balance, minus the lender’s fee, is released once your customer pays in full. The result: your business keeps moving, your working capital stays healthy, and you stop funding your operations from your overdraft while waiting on other people.
The Two Main Types of Invoice Finance
Invoice Factoring
The lender manages your sales ledger and chases payments on your behalf. Best suited to businesses that want to hand off credit control entirely. Your customers will be aware a funder is involved.
Invoice Discounting
You retain full control of your credit control and collections. The funding is confidential; your customers deal directly with you as normal. Typically available to more established businesses with stronger turnover.
Choosing the right type matters. A newer business with a smaller team often benefits from factoring, while an established company with its own credit control function may prefer the discretion of discounting. Getting that wrong costs money; getting it right means the facility works around you.
How Does Invoice Finance Work?
- 1
You raise an invoice
You complete the work or deliver goods and issue an invoice to your customer as normal.
- 2
The lender advances funds
Typically 80% to 90% of the invoice value is paid to you within 24 to 48 hours of the invoice being raised.
- 3
Your customer pays the invoice
Either directly to the lender (factoring) or to you as normal (discounting), depending on the facility type.
- 4
You receive the balance
Once settled in full, the remaining percentage is released to you, minus the agreed lender fee.
Who Is Invoice Finance For in Scotland?
Invoice Finance suits a wide range of Scottish businesses, particularly those operating in sectors where payment terms are long and margins are tight. Common industries include:
- Haulage and logistics
- Construction and trade contractors
- Manufacturing and wholesale
- Recruitment and labour supply
- Professional services and consultancy
- Food and drink production
- Engineering and industrial services
If your business invoices other businesses on credit terms and regularly waits on payment, Invoice Finance is worth understanding properly. It is available to sole traders, partnerships, and limited companies alike.
The Benefits for Scottish Businesses
Improved Cash Flow
Access funds tied up in invoices immediately rather than waiting weeks or months for settlement.
Flexible Funding
The facility grows with your turnover. The more you invoice, the more funding is available. No fixed loan cap.
No New Assets Required
Your invoices are the security. You do not need to pledge property or equipment to access funding.
Take On Bigger Contracts
Accept larger work with confidence, knowing you can fund delivery without waiting on payment to arrive first.
Invoice Finance Rates: What to Expect
Costs vary depending on your turnover, industry, debtor quality, and whether you choose factoring or discounting. As a general guide, expect a service fee of around 0.5% to 3% of invoice value, plus a discount charge on funds drawn, broadly comparable to a business overdraft rate.
The right lender for a Glasgow haulier is not the same as the right lender for an Edinburgh recruitment firm. Rates and appetite differ significantly across funders. Working with an independent broker who has access to more than 40 lenders makes a material difference to the cost and terms you end up with.
Invoice Finance Across Scotland: We Know the Market
Fraser Finance Solutions arranges Invoice Finance for businesses right across Scotland, from Glasgow and Edinburgh through to Stirling, Dundee, Aberdeen, the Scottish Borders, and beyond. Whether you are a sole trader in Falkirk or a limited company expanding across the central belt, we source funding from lenders who understand your market.
As a fully independent broker with no shareholders and no corporate targets, we are not tied to any single lender or product. That means we find the facility that suits your business, not the one that suits someone else’s quarterly figures.
Frequently Asked Questions
Will my customers know I am using Invoice Finance?
Not necessarily. Invoice Discounting is confidential. With Invoice Factoring, your customers will pay the lender directly and may be aware of the arrangement. We will advise which option suits your situation best.
Can a new business use Invoice Finance?
Yes, in many cases. Factoring is particularly accessible to start-ups and early-stage businesses. The key requirement is that you invoice other businesses on credit terms. We work with lenders who are comfortable at various stages of business growth.
What is the minimum turnover required?
This varies by lender. Some will consider businesses turning over as little as £100,000 per year; others require higher thresholds for discounting. We match you to lenders whose criteria fit where you are now.
How quickly can I access funds?
Once a facility is set up, funds are typically available within 24 to 48 hours of raising an invoice. Setting up the initial facility generally takes one to three weeks depending on the lender and your documentation.
Is Invoice Finance right for every business?
Not always. If you deal primarily with consumers rather than businesses, or if your invoicing is project-based with disputed terms, other products may suit better. We will always tell you honestly whether Invoice Finance is the right fit before recommending anything.
Ready to Release Cash From Your Invoices?
Get in touch with Fraser Finance Solutions today. We work with over 40 lenders across the UK to find Invoice Finance that actually fits your business. No jargon. No obligation. Just straightforward advice from an independent broker who works for you, not a bank.