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    Invoice finance for retail businesses

    Invoice finance releases the cash tied up in your unpaid trade invoices, covering rent, staff and stock while you wait to be paid.

    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 retailer wholesaling to cafés and farm shops, 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 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 stock has to be bought and paid for months before it sells. Drawing against your trade invoices funds the run-up to Christmas or summer, rather than the peak itself.

    Fund inventory and supplier payment

    Cash from invoices lets you pay suppliers on time, and could help you with early payments, helping you to negotiate better terms. For stock-heavy retailers, asset based lending can release working capital against inventory too.

    Support growth and expansion

    New store openings, refits and moving into online or trade sales all need cash upfront. Invoice finance funds them from sales you’ve already made, and the Growth Guarantee Scheme (GGS) can add further capacity.

    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 stretch to 90. Meanwhile rent, wages and suppliers are due every month, whatever the ledger says.

    Rapid growth opportunities

    A big new stockist, second site or product launch can double your outgoings before any money comes back. Funding that scales with your invoicing means growth needn’t stall for lack of cash.

    Large upfront inventory costs

    Buying stock in bulk ties up capital for months, especially on seasonal orders placed well before they sell. Invoice finance releases cash from what you’ve already sold, so the next order isn’t held back.

    Frequently asked questions

    What types of retail businesses can use invoice finance?

    Retailers that invoice other businesses on credit terms may be eligible, including wholesalers, trade counters, concessions and suppliers to other retailers. Pay-at-till consumer sales aren’t eligible, although asset based lending may help.

    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.

    How quickly can retail businesses access funding through invoice finance?

    Setting up a facility usually takes a couple of weeks, depending on your business. Once live, funds are typically advanced within 24 hours of submitting an eligible invoice via our online platform, IDeal.

    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 be better suited to asset based lending.

    • What types of retail businesses can use invoice finance?

      Retailers that invoice other businesses on credit terms may be eligible, including wholesalers, trade counters, concessions and suppliers to other retailers. Pay-at-till consumer sales aren’t eligible, although asset based lending may help.

    • 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.

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

      Setting up a facility usually takes a couple of weeks, depending on your business. Once live, funds are typically advanced within 24 hours of submitting an eligible invoice via our online platform, IDeal.

    • 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 be better suited to asset based lending.

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