Reality Advance

Instead of waiting for customers to pay, an invoice funding facility can release a percentage of eligible invoice values shortly after they're raised.

As your sales grow, the funding available can grow with them - making it particularly useful for businesses experiencing growth.

That's a much stronger message than the current “smarter than an overdraft” emphasis. The current page already talks about advancing up to 90% and bridging the gap between invoice and payment, so you're retaining the substance but repositioning it.

When considering an Invoice Discounting facility, most businesses want to know about the commitment and costs involved. Typically, agreements run for 12 months before moving onto a rolling contract, with clear guidance on notice periods and any early exit fees.

The fee model is straightforward, with a service fee for keeping the facility in place and a discount fee, usually around 2.5% above base rate, for the funds you actually draw down. Companies can usually access up to 90% of invoice values, and importantly, you retain full control of your credit control and dunning process — meaning you decide how and when to chase payments. Unlike invoice factoring, there’s no offshoring and no third party contacting your customers, so you maintain direct client relationships.

Security is standard across the industry, so facilities are usually backed by an All Assets Debenture, which can sit alongside your bank’s overdraft charge via a Deed of Priority. Directors may be asked for personal guarantees depending on the strength of receivables and balance sheet.

Bad debt risk generally remains with the client, though protection can be added through specialist insurance. To help manage everything, our Intelligent Cashflow platform integrates with leading ERP and accounting systems, giving you real-time reporting on payments, reserves, and funding availability.

Onboarding is straightforward, requiring documents such as accounts, debtor and creditor reports, forecasts and sample invoices, with ongoing management kept simple through monthly updates.

Cashflow is improved almost instantly, with funds made available the same day invoices are raised — and if you request before 1pm, money can be in your account by 3pm. Reserves are applied transparently and clearly shown on your dashboard, helping you decide when to suspend services or adjust customer terms.

Because Invoice Discounting leaves control with you, it’s important to maintain your own AR resource, though TUPE does not apply as collections stay in-house. In short, Invoice Discounting gives you quick access to working capital, up to 90% of your invoices, while keeping customer management firmly in your hands.

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