What is invoice finance and when does it help?

2 min read

Advance on invoicesHow it works

~80–90%Typical advance

Slow payersWhen it fits

What it means

Invoice finance lets a lender advance a large share of an invoice's value — often 80–90% — as soon as you raise it, with the balance (less a fee) paid when the customer settles. It comes as factoring (the lender also collects) or discounting (you keep collecting). It bridges the gap that slow payment creates.

When it helps

It suits firms that invoice on 30–90 day terms with dependable customers, where cash is reliably tied up in the sales ledger. It scales with turnover — more sales, more available finance — which a fixed loan does not. Size the likely advance with the invoice-finance calculator, and compare it against a business loan for your situation.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.

Frequently asked questions

Is invoice finance a loan?

Not exactly — it advances money you are already owed rather than lending against future income. That said, it carries fees and is a form of borrowing, so compare its cost against a straightforward loan for your situation.

Does invoice finance suit every business?

No. It fits businesses that invoice other businesses on credit terms with reliable customers. Firms paid instantly (retail, hospitality) or with a few concentrated customers may find other finance fits better.