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Credit Corp vs invoice finance
Invoice finance unlocks cash tied up in unpaid invoices and scales with your sales ledger — but it usually needs ongoing volume, a contract, and either ceding some control of collections or a discounting facility. This page sets a Credit Corp loan and invoice finance side by side honestly.
Credit Corp vs invoice finance
Being straight with you: if your business raises a steady volume of B2B invoices on long payment terms, invoice finance can unlock working capital that scales with your sales in a way a fixed loan cannot. Credit Corp earns its place when you need a small, one-off amount fast, do not have the invoice volume for a facility to make sense, or do not want an ongoing contract.
At a glance
| What matters | Credit Corp | Invoice finance (factoring/discounting) |
|---|---|---|
| Who it is for | UK limited companies and LLPs that need a small, fixed one-off amount. | B2B businesses with a regular volume of invoices on 30–90 day terms. |
| Typical amount | £50–£500 per advance. | Scales with your invoice ledger — commonly up to around 80–90% of an invoice's value advanced upfront. |
| Typical term | A fixed 14–84 days, then cleared. | Ongoing facility tied to your invoice cycle, usually contracted for a minimum term. |
| Cost structure | 0.25% per day simple interest + £5 one-off fee, capped at 100% of principal. | A service fee of roughly 0.5%–3% of turnover plus a discount charge of roughly 2%–4% over the base rate; total cost commonly around 1%–2.4% of annual turnover. |
| Decision speed | Same-day decision in most cases. | Setting up a facility typically takes days to a few weeks, including a review of your sales ledger and customer base. |
| Personal guarantee | No personal guarantee. We lend to the company. | Varies by provider; some facilities require a personal guarantee or debenture over the business. |
| Ongoing commitment | One-off, no contract beyond the single loan. | Usually a minimum-term contract, sometimes with exit fees if you leave early. |
| Customer contact | None — your customers are never contacted. | With factoring, the provider may contact your customers directly to collect; invoice discounting keeps this confidential. |
Indicative cost per £100 borrowed, per 30 days
Indicative cost per £100 borrowed, per 30 days (illustrative — not a quote)
How each one is priced
| Option | How it is priced | Typical amount & term |
|---|---|---|
| Credit CorpSmall, short borrowing for UK limited companies and LLPs — no personal guarantee. | 0.25% interest per day · £5 one-off fee · total cost capped at 100% of the amount borrowedInterest only; the £5 fee is one-off. Repaying early reduces the total. | £50–£500 · 14–84 days |
| Invoice finance (factoring/discounting)A representative UK invoice finance facility (factoring or discounting). | Service fee ~0.5%–3% of turnover + discount charge ~2%–4% over base rate (effective ~5%–7% annually at current base rates)Total cost commonly runs around 1%–2.4% of annual turnover; exact pricing depends on turnover, sector risk and customer creditworthiness. | Scales with invoice ledger · ongoing contract |
For a plain-English breakdown of what a business loan costs, and why, see the Help Centre.
When Invoice finance (factoring/discounting) is the better choice
- You raise a steady volume of B2B invoices on long payment terms and want funding that scales with sales.
- You are comfortable with an ongoing contracted facility rather than a one-off arrangement.
- You want to unlock a large proportion of your sales ledger, not just a small fixed amount.
- You meet the provider's minimum turnover or invoice-volume requirements.
When Credit Corp fits better
- You need a small, fixed one-off amount rather than an ongoing ledger-based facility.
- Your invoice volume is too low, or too irregular, for an invoice finance facility to make commercial sense.
- You want a same-day decision without setting up a new ongoing contract or ceding ledger control.
- You would rather your customers are never contacted about your financing arrangements.
How to read the comparison
- Invoice finance pricing is usually quoted as a service fee plus a discount margin over base rate, not a single APR, making direct comparison to a fixed-term loan approximate rather than exact.
- We normalise to "cost per £100 borrowed, per 30 days" using typical published fee ranges, so it can sit alongside a fixed-term loan; treat the figure as illustrative, not a quote.
- Invoice finance cost scales with your whole sales ledger and turnover, not a single borrowed amount, so its economics only make sense at a certain invoice volume.
- Always get a specific quote from an invoice finance provider based on your own turnover and customer base before deciding — published ranges vary significantly by risk profile.
Common questions
Is a Credit Corp loan cheaper than invoice finance?
For a large, ongoing volume of invoices, invoice finance is often the cheaper way to unlock working capital at scale. For a small, one-off amount, the fixed fees and minimum contract terms typical of invoice finance can make it disproportionately expensive or simply unavailable — that is where a Credit Corp loan fits better.
Why choose Credit Corp over invoice finance?
Speed, simplicity and no ongoing contract. Setting up an invoice finance facility takes time and usually requires a minimum invoice volume; a Credit Corp loan is a same-day, one-off decision with no ledger review or minimum-term commitment.
Will my customers know I am using invoice finance?
With factoring, often yes — the provider may contact your customers to collect payment directly. Invoice discounting keeps this confidential. A Credit Corp loan never involves contacting your customers at all.
Do I need a minimum turnover for invoice finance?
Most providers set a minimum invoice volume or turnover threshold for the economics to work, which varies by provider. Credit Corp has no such threshold — the loan is available to any eligible company regardless of invoice volume.
Sources
Invoice finance figures are representative UK market ranges, accessed July 2026. Figures change and vary by provider — please get a specific quote before deciding.
- Invoice finance: published UK market guidance on factoring and invoice discounting fees, typically service fees of 0.5%–3% of turnover plus a discount margin of 2%–4% over the Bank of England base rate, with total costs commonly around 1%–2.4% of annual turnover.
If a small, one-off amount with a same-day decision fits better than an ongoing ledger-based facility, see exactly what a Credit Corp loan would cost.
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Credit Corp lends to UK limited companies and LLPs under the body-corporate exemption (Articles 60B and 60L of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001). This is not consumer lending. The Financial Ombudsman Service and Financial Services Compensation Scheme do not apply. Full details: regulatory status and responsible lending policy.