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How invoice finance works

If slow-paying customers are holding back your cashflow, invoice finance lets you draw most of an invoice's value as soon as you raise it — instead of waiting 30 to 90 days to get paid.

The basics

You raise an invoice as normal. The lender advances a large share of it — often up to around 90% — straight away. When your customer pays, you receive the balance, less the lender's fee. Because funding is tied to your sales ledger, the facility grows as your turnover grows.

Factoring vs invoice discounting

With factoring, the lender also manages collections, so your customers may be aware of the arrangement — useful if you'd rather outsource credit control. With confidential invoice discounting, you keep control of collections and the facility stays private to your business.

Frequently asked questions

Is invoice finance a loan?

Not in the traditional sense — you're unlocking money you're already owed rather than taking on a fixed lump sum of debt, and the funding flexes with your sales.

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Tailwind Finance Ltd is a credit broker, not a lender. It is not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. We work with a panel of lenders, whose particulars will be supplied on request, to find a potentially suitable arrangement for your consideration.

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