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£
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£
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%
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%
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Invoice Finance Eligibility Assessment
Max Funding Availability
—
85–90% of eligible invoices
Eligible Invoice Book
—
after concentration adjustment
Effective Annual Fee
—
service fee + discount rate
Service Fee
—
% of invoice face value
Discount Rate
—
% over base rate p.a.
Advance Rate
—
% of eligible invoice value
Methodology & Citations
  • Eligibility thresholds based on UK Finance Invoice Finance Standards 2024 and published criteria from Bibby Financial Services, Close Brothers, Aldermore, and Lloyds Bank Invoice Finance.
  • Debtor concentration limits: most providers restrict concentration to 25–30% of ledger for invoice discounting; factoring is more flexible at 40–50%. Selective IF has no concentration requirement.
  • Fee ranges: service fee 0.2–2.0% of invoice value; discount rate base +1.5–4.0% p.a.; advance rate 80–90%. Source: ABFA (Asset Based Finance Association) Market Report 2024.
  • This tool provides indicative eligibility assessment. Actual provider terms depend on detailed due diligence, ledger audit, and provider-specific criteria.
About This Tool

Three invoice finance products assessed:

Invoice Discounting — you retain control of collections. Requires low debtor concentration (<30%), good debtor credit quality, and typically 2+ years trading.

Factoring — provider manages collections on your behalf. More flexible on concentration and debtor quality. Suits businesses with weaker credit control.

Selective Invoice Finance — cherry-pick individual invoices to fund. Most flexible: no concentration limit, no minimum ledger size. Higher cost per invoice.

Cross-link: T240 Working Capital Gap Calculator — size the funding gap before assessing invoice finance options.