When Should I Use Invoice Finance?

 Invoice finance UK is a powerful tool, but many businesses misunderstand it. It’s important to understand that invoice finance isn’t a good option for every business, so make sure you do your research and consult with your accountant before deciding whether or not it could be right for your company. 

There are several things to consider when evaluating whether invoice finance could work for your company, including finding out how much an invoice finance provider will charge. 


In general, there are two types of fees associated with invoice finance. The first is origination fees, which can vary depending on what type of loan you’re getting and who your lender is. Origination fees usually range from 0-2% of the total amount borrowed (this fee is also sometimes called a set-up fee). 


The second type of fee associated with invoice finance is interest rates; these rates can vary significantly depending on which lender you choose and how long you borrow money. Interest rates generally fall between 12-24%, but they can go as high as 36%. You should always look at both of these numbers together when considering if invoice finance is right for your business.

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