Invoice finance

Asset based lending

A confidential, flexible facility against receivables, stock, property, plant and machinery. Used for seasonal businesses, MBOs/MBIs, restructuring and acquisitions. Multiple currencies.

Apply for Asset based lendingInstant invoice quoteLearn moreOn qedfinance.com
Range
Bespoke
Term
Structured to the assets
Family
invoice
Search
Full market, one file

At a glance

  • Multi-asset security
  • Confidential
  • Seasonal-friendly
  • Restructuring & M&A

How it works

  1. 1The lender takes a view across receivables, stock, property, plant and machinery — not invoices alone.
  2. 2A revolving facility is sized to those assets and flexes as they move.
  3. 3It is typically confidential on the debtor book.
  4. 4Used for growth, seasonality, MBOs/MBIs, restructuring and acquisitions.
  5. 5Available in multiple currencies.

Who it’s for

  • Fast-growing mid-sized and larger companies
  • Businesses with a seasonal stock build
  • Groups going through MBO, MBI, merger or refinance of existing lines

Good to know

ABL is a structured product. Expect a fuller information pack than a simple invoice line.

It can replace a patchwork of overdraft, invoice finance and asset loans with one facility.

One application with QED searches the full market. That saves you running the same file around several lenders, and it avoids multiple credit searches on the business and directors. A hard search is only placed when you proceed with a chosen lender.

Worked example — £1,200 invoice

  • £1,200.00 gross sales invoice (incl. 20% VAT)
  • 30-day credit terms offered to the customer
  • Funder advances 85% against invoices
  • Customer pays 22 days late
  • Service charge assumed at 2%

Day 1

With invoice finance

£0 — goods delivered, invoice raised

Without

£0

Day 2

With invoice finance

£1,020 in the bank (85% of £1,200)

Without

£0

Day 40

With invoice finance

Still £1,020 — invoice is 10 days overdue

Without

£0 — still waiting

Day 52

With invoice finance

£1,176 net after the advance is repaid and 2% charged

Without

£1,200 lands in one go

You had 85% of the money on day 2 — cash to buy the next job, pay staff or take a discount from suppliers. By day 52 you have £1,176 of the £1,200 (the 2% fee). Same numbers as qedfinance.com/how-does-invoice-finance-work.

You wait the full 52 days with nothing. Late payers freeze payroll, materials and the next contract. That is the cash-flow problem invoice finance is built to solve.

Documents QED will ask for

Same list as the attach-files section on the website application. Tick what you have when you apply; email the rest.

  • Last published accounts (full accounts, not abbreviated)
  • Latest management accounts if year-end is stale
  • Last 3 months’ business bank statements
  • Last month-end aged debtors report (summary)
  • Last month-end aged creditors report (summary)
  • Live customer names, addresses and contacts
  • Existing invoice-finance contract and latest statement (if refinancing)

FAQ

Drawn from qedfinance.com and the way the UK market actually underwrites these facilities.

How is this different from invoice discounting?

Discounting looks at the sales ledger. ABL looks at the whole asset base so you can borrow against stock and plant as well as invoices.

Will customers know?

Usually no — ABL on receivables is typically confidential.

What assets count?

Trade receivables, stock, property, plant and machinery. The facility is sized to that pool and revolves as the assets move. Multiple currencies are common.

Who typically uses ABL?

Fast-growing mid-sized and larger companies, seasonal stock builders, and groups going through MBO, MBI, merger, acquisition or a refinance of existing lines. It is a structured product — expect a fuller pack than a simple invoice line.

Is invoice finance only for struggling businesses?

No. The UK industry serves around 50,000 clients borrowing over £16 billion at any one time, from start-ups to multi-nationals. Growing companies use it because the facility grows with the sales ledger.

Will this affect my credit score?

Starting a search with QED does not place a hard search. Credit checks that can affect a score only happen when you proceed with a chosen lender.

Do my customers have to know?

It depends on the product. Invoice discounting is confidential. Factoring is usually disclosed (a notice of assignment on invoices), though a few UK providers offer confidential factoring.

Prefer a number first?

Run the same calculator that sits on the website, then apply if the shape looks right.

Open the calculator

QED is a broker, not a lender. A low credit score can limit options with some houses; a search with us does not place a hard search on the business or directors until you proceed with a chosen lender.