Invoice Financing
Turn unpaid invoices into cash within hours. 100% of your invoice value advanced. Fees from 1.5% per invoice. No collateral, no long-term commitment.
Trusted by leading financial institutions
Nordea
OP Financial
Danske Bank
Finnvera
Svea
Ferratum
Multitude
Enfuce
TL;DR
Invoice financing lets you receive 100% of your invoice value immediately instead of waiting 14 to 120 days for customer payment. Fees run from 1.5% to 5.0% per invoice. Setup takes 1 to 3 days. Individual invoices from 500 EUR qualify.
What Is Invoice Financing?
Invoice financing is a working capital solution where a financing provider advances you cash against your unpaid B2B invoices. You issue an invoice to your customer as normal. Instead of waiting for the payment term to expire, you send the invoice to the financing provider, who pays you 100% of the invoice value within 1-2 hours. The fee is deducted from the advance, so you receive the full invoice amount minus the provider's fee. You maintain your customer relationship and collection process. The provider takes on late payment credit risk (in non-recourse arrangements) or you retain that risk (in recourse arrangements).
Step-by-Step Process
1. You deliver goods or services and issue a B2B invoice with a payment term (14 to 120 days). 2. You upload the invoice to the financing provider's platform. 3. The provider verifies the invoice and your customer's creditworthiness. 4. Within hours, you receive 100% of the invoice value minus the fee (1.5% to 5.0%) in your bank account. 5. Your customer pays the invoice on the due date. 6. The full payment goes to the provider. Example: a 10,000 EUR invoice with 100% advance and 2.5% fee. You receive 9,750 EUR immediately (10,000 minus 250 fee). When the customer pays, the 10,000 EUR goes to the provider.
01
Issue Your Invoice
Deliver goods or services and issue a B2B invoice with a payment term of 14–120 days.
02
Upload to Provider
Submit the invoice through the financing provider's platform or API integration.
03
Verification
The provider verifies the invoice and your customer's creditworthiness.
04
Receive Advance
Within hours, receive 100% of the invoice value minus the fee (1.5%–5.0%) in your bank account.
05
Customer Pays
Your customer pays the invoice on the due date as normal.
06
Settlement
The full payment goes to the provider. Since you already received 100% minus fee, there's nothing more to settle.
Costs and Fee Structure
The primary cost is a percentage fee per invoice, ranging from 1.5% to 5.0%. Factors that determine your rate: invoice amount (larger invoices get lower rates), customer creditworthiness (blue-chip customers mean lower risk and lower fees), payment term length (shorter terms cost less), your financing volume (regular users often negotiate volume discounts), and your company's credit profile. Some providers also charge a monthly platform fee (50 to 200 EUR), a setup fee (0 to 500 EUR), or a minimum monthly fee. Always ask for the complete fee schedule before signing.
Benefits for Your Business
Cash flow predictability: you get paid when you invoice, not when your customer decides to pay. No debt on your balance sheet: invoice financing is typically classified as off-balance-sheet, keeping your debt ratios healthy for bank relationships. Flexible usage: finance one invoice or all of them, most providers require no minimum commitment. Fast setup: most providers activate your account within 1 to 3 business days. Grows with your business: your financing limit increases automatically as your revenue grows. No collateral: your invoices are the security.
Cash Flow Predictability
Get paid when you invoice, not when your customer decides to pay. Eliminate waiting 30–120 days.
No Balance Sheet Debt
Invoice financing is typically off-balance-sheet, keeping your debt ratios healthy for bank relationships.
Flexible Usage
Finance one invoice or all of them. Most providers require no minimum commitment.
Fast Setup
Most providers activate your account within 1–3 business days. Individual invoices funded within hours.
Grows With You
Your financing limit increases automatically as your revenue grows. No renegotiation needed.
No Collateral Required
Your invoices are the security. No real estate, equipment, or personal guarantees needed.
Who Qualifies?
Requirements are lighter than for business loans. You need: a registered company, B2B invoices (consumer invoices do not qualify), customers with acceptable credit (the provider checks your customers, not just you), invoices with clear payment terms between 14 and 120 days, and minimum invoice amounts of 500 EUR. Most providers accept companies with as little as 3 months of operations, since the credit assessment focuses on your customers rather than your company.
- ✓Registered company
- ✓B2B invoices (consumer invoices do not qualify)
- ✓Customers with acceptable credit
- ✓Payment terms between 14 and 120 days
- ✓Minimum invoice amount of €500
Frequently Asked Questions
- How quickly do I receive the money?
- After initial setup (1 to 3 days), individual invoices are typically funded within 1-2 hours of submission. Some providers offer even faster funding for invoices submitted before noon.
- Does my customer know I use invoice financing?
- It depends on the arrangement. Confidential invoice financing keeps your customer unaware. Disclosed arrangements (common in factoring) notify the customer that payments go to the financing provider. Most providers offer confidential options.
- What happens if my customer does not pay?
- In recourse financing (most common), you must repay the advance if the customer defaults. In non-recourse financing, the provider absorbs the loss. Non-recourse arrangements carry higher fees (typically 1 to 2 percentage points more).
- Can I choose which invoices to finance?
- Yes. Selective invoice financing lets you choose individual invoices as needed. Some providers require you to finance all invoices to a specific customer or all invoices above a certain amount, so check the terms.
- What is the difference between invoice financing and factoring?
- Invoice financing is the broad category. Factoring is a specific type where the provider takes over your accounts receivable management and collection. Standard invoice financing lets you keep control of collections. Factoring costs more but reduces your administrative workload.
- Are there minimum volume requirements?
- Most providers have no strict minimums, but the economics work best with at least 10,000 EUR in monthly invoicing. Some providers charge a minimum monthly fee (50 to 200 EUR) that applies regardless of volume.
- How does invoice financing affect my balance sheet?
- In most arrangements, invoice financing is treated as off-balance-sheet financing, meaning it does not appear as debt. This keeps your debt-to-equity ratio unchanged, which benefits bank relationships and credit ratings. Confirm the accounting treatment with your auditor.
- Can I use invoice financing alongside a business loan?
- Yes. Many companies use both. A business loan covers planned investments while invoice financing handles working capital fluctuations. Lenders generally do not view invoice financing as competing debt since it is tied to specific receivables.
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