13 Questions to Ask an Invoice Finance Provider Before Signing
Thinking about committing to an invoice finance provider? Ask These Questions First.
Partnering with an invoice finance company can be a game-changer for UK SMEs looking to create naturally positive cash flow, and fund business growth. Before you sign any agreement, it’s vital to ask the right questions. This guide covers 13 essential queries to help you make an informed decision—and avoid costly surprises that can set your business back.
Late payments are a growing problem for UK SMEs. According to recent studies, over 50% of small businesses experience delays in customer payments, creating cash flow gaps that can lead to missed payroll, stalled growth, and unnecessary stress. Traditional banks often say “no” to SMEs due to rigid lending structures, outdated risk models, or sector bias—leaving many healthy, growing businesses without access to critical funds. This is where flexible, human-led invoice finance provider can make all the difference.
Questions for an Invoice Finance Provider
1. How Quickly Can I Access Funds?
Timing is everything when managing cash flow. Ask how long it takes to release funds once invoices are submitted. Top-tier providers should offer access within 24–48 hours, helping you stay agile in a competitive market.
2. Are There Any Hidden Fees?
Clarity on costs is critical. Confirm whether the provider has addition charge sheets or other fees buried in the fine print. At Partnership Invoice Finance, there are no hidden fees — just straightforward pricing.
3. Will You Contact My Customers?
If you’re using invoice factoring or recourse factoring, ask whether the provider will contact your customers for payment. If they do, ask how they manage those conversations to protect your brand and customer relationships.
4. What Happens If My Customer Doesn’t Pay on Time?
Late payments can derail your cash flow. Ask how the provider handles overdue invoices, whether there are extra fees, and how their credit control services support you in debt chasing.
5. Will I Have a Dedicated Point of Contact?
Dealing with chatbots or faceless service centres can be frustrating. Ensure you’ll have a named advisor who understands your business. At PIF, clients speak directly with experienced decision-makers.
6. Can I Choose the Invoices to Fund?
Some providers require you to factor all invoices. Others offer selective invoice finance. Ask whether you have control over which invoices to submit, and whether this impacts fees or service terms.
7. Do You Offer Additional Services Like Ledger Management?
Outsourced credit control and ledger management can be valuable add-ons for growing businesses. Find out what’s included, how it’s delivered, and whether it integrates with your accounting systems.
8. How Flexible Is the Agreement?
Are you tied into a long-term contract? What notice is required to make changes? Can the facility scale as your business grows? The best business funding options evolve with you—not against you.
9. Do You Understand My Sector?
Some providers apply blanket rules across industries. A good invoice finance partner should understand your sector’s payment cycles, seasonality, and risks. This is especially important in industries with complex contracts or variable invoice values.
10. What Are the Terms If I Want to Leave?
Some providers make it hard to exit. Ask about notice periods, termination fees, and transition support. Look for fair terms that don’t penalise growth or change, you can find more information about code of conduct at UK Finance.
11. How Do You Handle Disputes with Customers?
Make sure your provider has a clear, fair process for handling disputes so that your cash flow isn’t unfairly impacted. Ensure you can speak with a relationship manager who will then liaise and support your business.
12. What Happens During a Funding Review?
Many invoice finance providers conduct periodic reviews. Ask what’s involved, how often they occur, and whether they could impact your facility or costing. Look for a transparent, collaborative process.
13. Why Should I Choose You Over a Traditional Bank?
Traditional banks often turn SMEs away due to outdated lending structures. Ask what makes the provider different. At Partnership Invoice Finance, we focus on relationship-led support, flexible solutions, and ethical funding—not rigid scorecards or automated rejections.
Final Thoughts: Make the Right Call for Your Business
Choosing the right invoice finance company means more than just getting a good rate. It’s about building a trusted relationship with a provider who supports your working capital management, aligns with your values, and responds to your evolving needs.
Want a flexible partner that offers ethical funding, fast access to cash, and human-led support?
Book a free, no-pressure invoice finance consultation today with Partnership Invoice Finance. Contact us to learn more.
Chris Falby
With over two decades dedicated to helping businesses in the South East thrive, Chris, Sales and Marketing Director, brings a wealth of knowledge in securing financial assistance for SMEs. His career began in mainstream banking, where he gained valuable experience managing advances. This foundation, coupled with his extensive network and expertise in independent funding, allows Chris to provide tailored invoice finance solutions that meet the unique needs of each client.
