Invoice (Debt) Factoring

How does Invoice (Debt) Factoring work?

Step 1
You provide the goods/services to your customer and invoice them.

Step 2
You send the invoice details to us, either electronically or by post.

Step 3
We advance up to 90% of the invoice value by the next working day.

Step 4
When using Invoice (Debt) Factoring, HSBC Invoice Finance collects the debt.

Step 5
When the invoice is paid by your customer, you receive the balance (less any charges).

Invoice (Debt) Factoring – Key features and benefits

• Invoice (Debt) Factoring is suitable for businesses who sell to other businesses on credit terms.
• Enables you to raise cash against your business to business invoices, without having to wait weeks or months for payment.
• Gives you full control of your cashflow as HSBC Invoice Finance can pay up to 90% of the value of eligible invoices the next working day.
• No need to keep increasing your overdraft as your business grows. The more your sales book grows, the more we'll help you to turn your invoices into cash, enabling you to concentrate on running your business.
• An improved cash flow can help you to buy more competitively from your suppliers by obtaining early payment discounts.
• Businesses that have a flexible source of working capital can respond more quickly to market opportunities.
• You can avoid the hidden costs associated with providing extended credit for your customers.