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    Invoice finance for retail businesses

    Invoice finance helps retail businesses improve cash flow, manage seasonal demand and invest in growth without waiting for customers to pay.

    What is invoice finance for the retail industry?


    Whether you’re a fashion brand supplying department stores, a builders’ merchant with trade accounts, or a food wholesaler in hospitality, invoice finance for retail businesses turns the invoices you raise into working capital. Instead of waiting 30, 60 or 90 days to be paid, you draw against each invoice the day it’s raised.

    How does invoice finance for the retail industry work?


    After invoicing your trade customers as normal, we advance up to 90% of each invoice’s value, paying the balance less our fee when the customer settles. Because funding is based on your sales ledger, it grows with your invoicing ahead of key trading periods, such as Christmas or summer, and eases back in quieter months. Use our invoice finance calculator to see how much you could release.

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    Benefits of invoice finance for retail companies

    Improve cash flow during seasonal peaks

    Seasonal demand requires early investment. Drawing against your trade invoices can help fund stock purchases months before your busiest trading periods, supporting growth without putting pressure on cash flow.

    Fund inventory and supplier payments

    Cash released from your invoices can help you pay suppliers on time and take advantage of early payment discounts. For stock-intensive businesses, asset-based lending can also unlock working capital tied up in inventory.

    Support growth and expansion

    Release cash tied up in invoices to help to fund expansion projects such as new store openings, refits and new sales channels. Additional support may be available through the Growth Guarantee Scheme (GGS).

    Invoice discounting aids Berkshire firm's growth


    "Close Brothers has an excellent understanding of our business needs and provides a service that is value for money. The transition from our previous supplier was seamless and the IDeal™ system is very user friendly and simple to use, with minimum training needed."


    Raj Kumar, Managing Director at Creative Retail Entertainment

    Read this case study

    Invoice finance products for the retail industry

    Invoice discounting

    Invoice discounting is for established retailers that want to keep collections in-house. It’s confidential, so your trade customers won’t know you’re using it, and funds are released the moment invoices are raised.

    Invoice factoring

    Invoice factoring suits smaller or fast-growing retailers without an in-house credit control team. As well as advancing up to 90% of each invoice, our credit management team chases and collects payment for you.

    Asset based lending

    For larger, stock heavy retailers, asset based lending combines invoice finance with funding against stock, property and equipment. It suits bigger strategic moves such as acquisitions, refinancing or a major expansion.

    Cash flow challenges for retail businesses

    Long customer payment terms

    Wholesale and trade accounts typically pay on 30 to 60 day terms, and larger customers often take longer. Unlocking cash from your invoices helps cover day-to-day costs such as payroll and other overheads.

    Rapid growth opportunities

    A new stockist, second site or product launch can increase your outgoings before any revenue starts to flow. Funding that grows with your sales helps you to bridge that gap.

    Large upfront inventory costs

    Buying stock in bulk ties up valuable working capital, especially on seasonal orders. Invoice finance releases cash from completed sales, helping you fund future purchases with greater confidence.

    Frequently asked questions

    What types of retail businesses can use invoice finance?

    Invoice finance is typically available to retail businesses that invoice other businesses and offer credit terms, including wholesalers, trade suppliers and distributors.

    Can invoice finance help retailers purchase stock?

    Cash released from trade invoices can go straight into your next stock order. Retailers whose funding need is mainly stock, rather than invoices, may also benefit from asset based lending.

    How quickly can retail businesses access funding through invoice finance?

    Funds are typically advanced within 24 hours of submitting an eligible invoice via our online platform, IDeal.

    Can invoice finance help with seasonal demand?

    Yes. Because funding is linked to eligible invoices, the amount available can rise as you invoice more ahead of peak trading and reduce again afterwards.

    • What types of retail businesses can use invoice finance?

      Invoice finance is typically available to retail businesses that invoice other businesses and offer credit terms, including wholesalers, trade suppliers and distributors.

    • Can invoice finance help retailers purchase stock?

      Cash released from trade invoices can go straight into your next stock order. Retailers whose funding need is mainly stock, rather than invoices, may also benefit from asset based lending.

    • How quickly can retail businesses access funding through invoice finance?

      Funds are typically advanced within 24 hours of submitting an eligible invoice via our online platform, IDeal.

    • Can invoice finance help with seasonal demand?

      Yes. Because funding is linked to eligible invoices, the amount available can rise as you invoice more ahead of peak trading and reduce again afterwards.

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