For SMEs waiting on unpaid invoices, cash flow interruptions can quickly derail operations and limit growth. Invoice factoring offers a powerful solution—turning outstanding invoices into immediate working capital. Rather than waiting 30, 60 or even 90 days for clients to pay, businesses can unlock funds in just a few days and keep operations running smoothly.
What Is Invoice Factoring?
Invoice factoring allows businesses to sell their unpaid invoices to a third party—known as a factoring exchange for an advance of up to 90% of the invoice value. Once the customer pays the invoice, the remaining balance (minus fees) is paid to the business. This funding method is fast, flexible, and secured against the invoice itself, not your company assets.
Why SMEs Choose Invoice Factoring
Delayed payments are one of the most common cash flow challenges for growing businesses. Invoice factoring helps bridge the gap between issuing an invoice and receiving payment, giving you access to money you’ve already earned—just sooner.
Key Benefits
- Improved Cash Flow: Free up working capital tied in invoices and keep your operations moving without interruption.
- Faster Growth: Reinvest funds into hiring, stock, marketing, or infrastructure improvements.
- Outsourced Credit Control: Many factoring providers handle collections, saving you time and effort.
- No Additional Debt: Unlike loans, invoice factoring doesn’t add liabilities to your balance sheet.
Is It Right for Your Business?
Invoice factoring is ideal for businesses with regular invoicing cycles and commercial clients. It suits sectors like construction, logistics, manufacturing, recruitment, and professional services—anywhere delayed payments can hinder day-to-day operations.
However, it’s important to evaluate the cost. Factoring fees vary, so ensure the benefit of quicker access to cash outweighs the charges. Also, consider whether you’re comfortable with a third party handling customer collections—some SMEs prefer to retain this in-house.
Connecting Back to us
At TMS Finance, we work with a wide range of trusted invoice finance providers to tailor solutions that suit your business needs. Whether you need spot factoring for a one-off invoice or full ledger factoring for ongoing support, we’ll match you with the right funding partner.
Our team ensures transparent pricing, quick approval, and seamless onboarding so you can unlock your invoices without hassle. We’re here to help you overcome cash flow gaps and keep your business growing—on your terms.
Let’s Talk About Your Cash Flow
If unpaid invoices are holding your business back, invoice factoring could be the key to unlocking working capital and driving forward momentum. Get in touch with TMS Finance today to explore tailored invoice finance solutions that support your long-term goals.
