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Invoice finance:
get paid before your customer pays.
If your working capital gap is caused by customers taking 30, 60 or 90 days to pay — invoice finance releases that money before they do. This guide explains how it works, how it differs from factoring, and how Credicorp's Slice product fits in.
What is invoice finance?
Invoice finance converts outstanding invoices into immediate cash. Instead of waiting for a customer to pay at day 30, 60 or 90, the company receives a proportion of the invoice value from a finance provider — often 70–90% — as soon as the invoice is raised. The remainder, less the provider's fees, arrives when the customer actually pays.
The invoice is the asset. The company has done the work, raised the invoice, and is owed the money. Invoice finance allows it to access most of that value immediately rather than waiting out the customer's payment terms.
This is distinct from a loan or revolving credit facility, which are based on the company's general creditworthiness and cash flow. Invoice finance is tied to specific, identifiable amounts owed by specific customers — it bridges the gap between doing the work and being paid for it.
Invoice finance vs factoring
Both are ways of releasing cash from invoices, but they differ in who manages the customer relationship:
- Factoring. The finance provider takes over the management of the debtor book — chasing customers for payment on the company's behalf. Customers typically know their invoices have been assigned. The provider handles credit control; the company receives the advance minus the provider's management fees. Factoring is common for smaller companies that want to outsource credit control entirely.
- Invoice discounting / invoice finance. The company retains full control of its debtor book and customer relationships. The finance provider advances money against the invoices, but the company continues to chase customers for payment itself. The arrangement can be confidential — customers do not need to know. Credicorp's Slice product operates on this basis.
For most B2B companies with established customer relationships, retaining credit control is important — a factoring arrangement where a third party chases their customers can affect those relationships. Credicorp's model preserves the company's control.
Credicorp Slice
Slice is Credicorp's invoice-backed credit product for UK limited companies. It is the third product in the Credicorp range, alongside:
- Business Bridging Loan — a fixed-term lump sum (1–84 days)
- Flex — a revolving credit facility (draw and repay repeatedly)
- Slice — credit backed by specific outstanding invoices
Slice works against specific identified invoices rather than the company's general credit standing. The credit is typically repaid when the customer pays the invoice — the credit cycle mirrors the invoice payment cycle.
The customer does not need to know. The company retains full control of its debtor book and chases payment directly. As with all Credicorp products, no personal guarantee is required — lending is to the company. Full product details and the application are at credicorp.co.uk.
Who invoice finance suits
Invoice finance works well for:
- Companies that invoice other businesses (B2B) on 30, 60 or 90 day terms
- Businesses where a large proportion of revenue sits in outstanding debtors at any point
- Companies growing fast — more orders means more invoices outstanding, which means more working capital tied up
- Seasonal businesses that invoice heavily at peak periods but wait for payment through the off-season
Invoice finance is less suited to:
- Consumer-facing businesses paid immediately (retail, hospitality, services paid on the day)
- Companies without B2B invoicing — no outstanding invoices means nothing to finance
- Companies with disputed or unenforceable invoices — the invoice must represent a genuine, collectible debt
How to assess whether invoice finance suits your business
- Check whether the business is B2B with outstanding invoices. Does the company issue invoices on credit terms to other businesses? Are those invoices outstanding — not yet paid — and unchallenged? If yes, the company has an invoice asset that can be financed.
- Identify the specific invoices causing the gap. Invoice finance works against identifiable invoices — specific customers, specific amounts, specific due dates. Compile the outstanding invoice book: customer, amount, issue date, payment due date.
- Assess whether the customers are creditworthy. The finance provider advances money on the basis that the invoices will be paid. Invoices from large, established businesses on standard terms are strong assets. Invoices from new customers on disputed terms are weak assets. The debtor's creditworthiness matters alongside the company's.
- Apply at credicorp.co.uk for Slice. Apply with the company's Open Banking consent and invoice details. This site is the brand front door and does not take applications.
Invoice finance questions
What is invoice finance?
Invoice finance is a way of releasing the value of outstanding invoices before the customer pays. Instead of waiting 30, 60 or 90 days for a customer to settle, the company receives a proportion of the invoice value upfront from a finance provider — typically 70-90% — and the remainder (less fees) when the customer pays. It suits businesses that invoice other businesses (B2B) and have a working capital gap caused by slow-paying customers.
What is the difference between invoice finance and factoring?
Both are types of invoice finance, but they differ in who manages the credit control. With factoring, the finance provider takes over the management of the company's debtors — chasing customers for payment on the company's behalf. With invoice discounting (or invoice finance without management), the company retains control of its debtor book and customer relationships; the finance provider simply advances money against the invoices. Credicorp's Slice product is the latter type — the company retains its customer relationships.
What is Credicorp Slice?
Slice is Credicorp's invoice-backed credit product for UK limited companies. It provides credit tied to specific outstanding invoices — the invoice value backs the facility and the credit is typically repaid when the customer pays. It sits alongside the Business Bridging Loan (lump-sum, fixed term) and the Flex revolving credit facility (draw-and-repay) as the third Credicorp product. Apply at credicorp.co.uk — this site is the brand front door and does not take applications.
Who is invoice finance suited to?
Invoice finance suits B2B companies that: issue invoices with payment terms (30, 60 or 90 days); have creditworthy customers who are slow to pay rather than unwilling to pay; have a working capital gap that directly tracks the invoice cycle. It is less suited to companies with cash-paying customers (retail, restaurants, consumer services) where there are no outstanding invoices to finance.
Does invoice finance affect the company's relationship with its customers?
With factoring (where the finance provider takes over credit control), customers may be notified that their invoices have been assigned to a third party. With invoice discounting where the company retains control — Credicorp's approach with Slice — the customer relationship is unchanged. Customers pay the company as normal; the finance arrangement is between the company and Credicorp.
Related guides
For a comparison of all three Credicorp products, read Bridge vs Flex vs Slice: which Credicorp product. For the cash-flow gap that invoice finance addresses, read the cash-flow gap, explained. For what working capital finance means more broadly, read what is working capital finance. All the guides are on the Learn hub.
Invoices out. Cash in now.
No personal guarantee. No factoring arrangement. Your customer relationships stay yours.