Invoice finance | Courier and delivery businesses
Invoice finance for courier and delivery businesses
Invoice finance guidance for couriers and delivery firms using proof of delivery and assignable invoices, with practical detail on settlements, credit risk and recourse.
Definition
Invoice finance for courier and delivery businesses
Courier and delivery businesses often carry costs before customer money arrives. Fuel, driver payments, vehicle hire, insurance, depot costs and subcontractor invoices can all move out of the business before large customers, marketplaces or platform clients release settlement. Invoice finance can be one way to turn eligible unpaid B2B invoices into working capital, but the structure needs to match how the work is actually billed and evidenced. Ocean Capital Exchange is a commercial finance broker, not a lender, so the starting point is not a standard product label but whether your invoices are valid, assignable and suitable for funding under the payer, contract and documentation terms involved.
Invoice finance is a form of receivables funding: a provider advances an agreed percentage of the value of eligible business-to-business invoices, then releases the remainder, less its charges, once the customer pays.
It is not a term loan with a fixed repayment schedule. The amount available moves with the sales ledger: as new eligible invoices are raised, more funding can become available; as customers pay, the advances are settled.
Providers typically focus on the creditworthiness of the customers paying your invoices, so your business's own credit profile may carry less weight. They still assess your business, invoice quality, payment history and customer concentration.
There are two main forms. In factoring, the provider normally manages the sales ledger and collects payment from customers. In invoice discounting, the business normally keeps its own credit control and customers pay into an account the provider controls.
At a glance
- Funded against
- Eligible, undisputed invoices raised to business customers
- Main forms
- Factoring and invoice discounting
- Advance rate
- Set by the provider for each facility; not a fixed percentage
- Charges
- Typically a service fee and a discount charge, plus any other fees in the contract
- Recourse
- Under most facilities the business remains responsible if a customer does not pay
- OCE’s role
- Introducer to third-party finance providers; not a lender
How invoice finance works for courier and delivery firms
Invoice finance is based on eligible unpaid B2B invoices, not on future work that has not yet been billed. In practice, a funder will want to know who owes the money, when the invoice was raised, whether delivery can be evidenced and whether there are any disputes, credits, chargebacks or contractual deductions. For a courier business, that may mean looking at signed delivery records, platform settlement statements and customer terms alongside the invoice itself. If the debt is not yet due or is subject to a condition, it may be treated differently from an ordinary trade receivable.
Eligibility is not simply a matter of having turnover or a long trading history. The debtor’s credit standing, the quality of the invoice and the terms under which the work was carried out can all influence the decision. If invoices are concentrated with one large customer or platform, the funder may consider concentration risk carefully. If your business uses subcontract drivers, it will also matter whether you are invoicing a genuine business debtor for work completed, rather than relying on a chain of internal settlements that has not yet become an enforceable receivable.
Factoring, discounting and selective funding in a delivery business
Factoring and discounting both use unpaid invoices, but the day-to-day experience is different. With factoring, the funder normally handles collections, so the debtor may be contacted by the finance provider once the invoice is assigned. That can suit firms that want to reduce the administrative load of chasing slow payers, but it also means the process needs to work cleanly with your customer relationships and service levels. With discounting, the business normally keeps credit control, so it continues to manage debtor contact itself while using the invoices as security or collateral for funding.
Selective or spot factoring can be helpful where a courier company only wants to fund certain invoices or certain customers. For example, a business might choose to fund invoices raised to one or two major commercial clients while leaving smaller or faster-paying accounts outside the arrangement. That said, not every invoice is suitable just because it has been issued. The funder will still assess debtor quality, contract wording, disputes and any set-off rights. Spot funding should therefore be seen as a way to target particular receivables, not as an automatic route for every invoice in the ledger.
Proof of delivery, settlements and invoice validity
Courier firms often have solid operational evidence, but funders need legal and commercial clarity as well as delivery proof. A signed proof of delivery, tracking scan or POD image can help show that the service was completed, yet the invoice still needs to be a valid receivable under the contract. If the customer can delay payment because of missing manifests, disputed drop-off times, damage claims or service penalties, the invoice may not be treated as fully available for funding. The same applies where a platform makes deductions for commissions, route issues or performance adjustments before passing on the balance.
Where the work is settled through a platform, the important question is often whether the amount due is an assignable invoice or simply a calculated settlement balance. Those are not always identical. Some arrangements are based on a direct business debtor, while others involve periodic reconciliations, credits and deductions that can make the receivable less straightforward. A broker can help explain the structure to the funder so the business does not present settlement income as if it were an ordinary, undisputed invoice when the contract says otherwise.
Charges, recourse and operational impact
Invoice finance involves costs and risks that need to be understood before a business commits. There may be fees for the facility, administration and debtor management, and the overall cost will depend on the structure and the risk presented by the ledger. With recourse arrangements, the business may have to buy back or repay funding if an invoice is not ultimately collected for reasons covered by the agreement. That is especially relevant where disputes, deductions or customer insolvency are possible. It is important to understand exactly when a shortfall becomes the business’s responsibility and what happens if a debtor pays late rather than not at all.
The operational impact also matters. If you use factoring, your customers may see the funder in the collections process, so the service style must be compatible with your brand and service model. If you use discounting, your own team keeps the credit control workload, which can be useful but also means someone must stay on top of debtor queries and statements. In a courier environment, where contact can be frequent and invoices may be generated in batches, the chosen structure should fit the way the business already works rather than forcing an awkward process onto it.
Why a broker can help shape the case for funding
Ocean Capital Exchange works as a commercial finance broker, so the value lies in understanding which invoice finance structure is most likely to fit the actual billing model. That means separating direct business invoices from platform settlements, identifying where proof of delivery supports the receivable and checking whether any terms create disputes, set-off rights or other restrictions. It also means helping the business present debtor concentration, payment patterns and documentation clearly so the funder can make an informed view. Because OCE is not a lender, it does not set the credit decision itself, but it can help avoid putting the wrong type of ledger in front of the wrong provider.
For courier and delivery firms, that can make a real difference to the conversation. A business that relies on assigned invoices to commercial customers may be better suited to a different structure from one that mostly receives settlement balances from a platform. A firm with strong POD records but frequent deductions may need a more cautious assessment than one with straightforward net terms. The point of broker support is not to promise a result, but to align the proposal with the way the business actually trades and the way a funder will assess risk.
Suitability
Which businesses it tends to suit
A funder will usually want more than a trading history and a stack of invoices. For courier and delivery businesses, the assessment typically looks at who the debtor is, whether the invoice is a genuine and assignable B2B receivable, whether proof of delivery and other supporting records are complete, and whether there are disputes, set-off rights, chargebacks or deductions that could affect collection. Credit control arrangements matter too, especially where the business wants factoring or where a platform controls the payment flow. Applicant credit is relevant, but it is not the only consideration. Availability does not automatically grow with turnover, and a stronger sales figure does not by itself make a ledger fundable. OCE can help organise the information, but the final decision sits with the lender and its own criteria. Invoice finance is built around a sales ledger of business customers. Whether it fits depends less on your sector than on how you invoice and who owes you money.
Usually a fit
- Businesses that invoice other businesses on credit terms and regularly wait weeks or months to be paid.
- Growing businesses whose sales are rising faster than cash comes in, so working capital is stretched by success rather than by losses.
- Wholesalers, distributors, manufacturers, recruiters and service firms that must pay suppliers or staff before their customers settle.
- Businesses that would value help with collections, where factoring and an outsourced credit control function may be appropriate.
Usually not a fit
- Businesses selling mainly to consumers, or taking payment at the point of sale. There is no business receivable to fund.
- Pre-payments, deposits and invoices raised before goods or services have been delivered, which providers generally treat as ineligible.
- Ledgers with significant disputed, contra or long-overdue debts, which are usually excluded from the funding calculation.
- Ledgers heavily concentrated on one or two customers, unless a provider agrees a concentration limit that suits the business.
Process
How invoice finance works for courier and delivery businesses
For courier and delivery businesses, the process needs to reflect the business and its funding purpose. The mechanics vary between providers and between factoring and discounting, but the cycle for a single invoice usually follows these stages.
- 01
Invoice issued
You deliver goods or complete services and raise a valid invoice to your business customer in the normal way.
- 02
Provider checks eligibility
The invoice is notified to the provider, which checks it is eligible and that it sits within the customer’s credit limit and your overall funding limit.
- 03
Agreed advance paid
The provider pays you the agreed percentage of the invoice value. The balance, the retention, is held back until the customer pays.
- 04
Customer pays
Your customer pays into the agreed collection account, which is normally controlled by the provider. In factoring the provider chases payment; in discounting you usually do.
- 05
Reconciliation
The provider applies the payment against the advance and deducts its charges, such as the discount charge and service fee.
- 06
Balance released
The remaining balance is released to you. If the customer does not pay within the agreed period, a recourse facility can require you to repay the advance.
Protection against customer insolvency (bad debt protection) is not included by default. It is only available where a provider separately agrees it, usually for an additional charge and subject to limits.
Comparison
Factoring, invoice discounting and spot factoring
All three release cash against invoices. Spot factoring focuses on individual or selected invoices, rather than an ongoing ledger facility. Compare how each option handles collections, customer relationships and reporting.
| Factoring | Invoice discounting | Spot Factoring | |
|---|---|---|---|
| Invoices funded | An ongoing facility covering eligible invoices for the agreed customer or debtor book. | An ongoing facility against an agreed eligible sales ledger. | Individual or selected invoices considered separately, subject to the provider's approval. |
| Who collects payment | The provider normally manages the sales ledger and collects from customers. | The business normally keeps its own credit control and collections. | The provider usually collects payment for the selected financed invoices, under the agreed terms. |
| Customer awareness | Customers usually deal with the provider and will be aware of the arrangement. | Can be arranged on a confidential basis only where the provider agrees. Confidentiality is not automatic. | Customers are usually notified of the payment arrangements for the financed invoices. |
| Internal resource needed | Lower; useful where the business has no dedicated credit control. | Higher; the business needs reliable credit control and reporting. | The business manages the rest of its ledger; provider support applies to the financed invoices. |
| Reporting to provider | Provider sees the ledger directly as it manages it. | Regular ledger reports, reconciliations and periodic audits by the provider are common. | Invoice details, debtor information and supporting evidence are assessed for each selected invoice. Checks vary by provider. |
| Typical fit | Smaller or fast-growing businesses wanting collections support. | Established businesses with robust financial controls. | Businesses with occasional cash-flow gaps or larger invoices, rather than an ongoing ledger-funding need. |
In practice
Funding needs for courier and delivery businesses
These are some of the practical funding challenges to discuss when considering invoice finance.
- Proof of delivery does not always mean automatic funding
- In courier and delivery work, the fact that a job has been completed is only part of the picture. Lenders and funders will usually look for a clear invoice, matching delivery evidence and a payer who is genuinely a business or public-sector customer. A proof of delivery record can support the case that goods or parcels were delivered, but it does not by itself guarantee that the debt is eligible. If there is a dispute about quantity, timing, damage, missed slots, service failures or chargebacks under the contract, the invoice may be treated differently or excluded until the issue is resolved.
- Platform settlements can be different from assignable invoices
- Some courier businesses invoice a customer directly, while others are paid through a platform or route management system that settles on a periodic basis. Those arrangements are not always the same thing as a straightforward invoice that can be assigned to a funder. The contract may define who is the debtor, when the debt becomes due and whether set-off, deductions, commissions or dispute rights apply. If the platform controls the billing cycle or holds back amounts pending checks, that can affect how much is eligible and whether factoring, discounting or selective funding is the better fit.
- Applicant strength is only one part of the decision
- It is easy to assume that funding depends mainly on the courier company’s own trading history, but debtor credit, invoice validity, concentration and contractual terms all matter. A funder may take a different view if a large share of turnover comes from one platform or one end customer, or if invoices depend on documentation that is not always complete. Seasonal peaks, subcontractor chains and contested deductions can also affect appetite. OCE can help a business understand how these issues are likely to be viewed, but a lender may offer an entirely different quote after reviewing the full financial and contractual picture.
A courier business completes a week of work for several commercial customers. Some jobs are invoiced directly to businesses with clear payment terms and signed proof of delivery. Other jobs are settled through a platform that deducts commissions and makes periodic adjustments before passing on the balance. The firm wants working capital to cover driver costs and fuel while it waits for receipts. A broker reviews the ledger and separates the direct business invoices from the platform settlements. The direct invoices may be easier to assess as eligible unpaid B2B receivables, while the settlement balances may need specialist review because the contract wording, deductions and assignment rights differ. The broker then discusses whether factoring, discounting or selective funding may fit the pattern of invoices. This is only a hypothetical operational example. There are no figures, no assumed terms and no promise of acceptance. A lender may offer an entirely different quote after reviewing the business’s financials, debtor profile, contracts and supporting evidence.
Assumptions
- The business is invoicing commercial customers or a public-sector body, not individual self-funders.
- Signed or otherwise reliable proof of delivery exists for the relevant jobs, but the funder still reviews invoice validity, disputes and contract terms.
Illustrative example only. You may receive an entirely different quote after a lender reviews your financials and funding requirements. Approval and terms are subject to provider assessment.
Weighing it up
Benefits and material limitations
Consider both the potential benefits for courier and delivery businesses and the product risks below.
Benefits
- Match the facility to the way you bill
- Invoice finance is not one single structure. Factoring normally includes collections, so the funder takes on the credit control process for the assigned invoices. Discounting normally leaves credit control with the business, which may suit a courier firm that wants to keep debtor relationships direct. Spot factoring concerns selected invoices rather than the whole ledger, which can be useful where only certain customers or routes create a funding need. The right approach depends on how your invoices are issued, how payments are collected and whether your debtors will accept notice of assignment.
- Potentially smoother cash flow around long settlement cycles
- Courier and delivery firms can feel the strain when job costs are immediate but settlements are delayed by weekly payment runs, platform processing or month-end reconciliation. Funding against eligible unpaid invoices can help bridge that gap, but it should be viewed as a cash-flow tool rather than a cure for weak margins. Charges, reserve mechanisms and recourse exposure can all affect the net amount received over time. The most suitable structure is usually the one that fits the timing of receipts without creating avoidable pressure on the business.
- Use evidence and terms to support eligibility
- Strong documentation matters in this sector. Clear customer contracts, signed or electronic proof of delivery, accurate invoicing and clean debtor ageing can all help support a case for funding. If a business works with several platforms, it is useful to separate invoices that are directly assignable from those that are subject to deductions, third-party controls or settlement adjustments. That helps avoid confusion between revenue already earned and amounts that are still conditional. A broker can help present the file clearly so a funder can assess it properly.
Material limitations
- Only eligible invoices are funded
- Disputed, overdue, related-party, pre-billed and some overseas invoices may be excluded, so the usable amount can be well below the ledger total.
- Customer and concentration assessment
- Providers set credit limits per customer and may cap exposure to large customers, restricting funding on your biggest accounts.
- Recourse
- If a customer does not pay, the business usually has to repay the advance. Bad debt protection only applies if separately agreed.
- Fees and minimum terms
- Contracts can include minimum fees, minimum periods, notice periods and termination charges, which matter if you later want to leave.
- Guarantees and security
- Providers may require personal guarantees, indemnities or debentures where agreed in the facility.
- Confidentiality is not automatic
- Customers may learn of the arrangement, particularly under factoring, or if the provider needs to collect directly.
Why Ocean
Invoice finance that fits the way you trade
The advance percentage is only part of the decision. Ocean helps you consider the type of invoice facility, your customers and the way you want to manage collections before introducing relevant providers from our panel.
Industry context, not just an application form
We discuss how your business trades, when money comes in and what the funding must achieve, so sector-specific cash-flow pressures form part of the conversation.
Access to a wide panel
Ocean works with a wide panel of third-party lenders and specialist finance providers. That gives you options beyond one bank's product range, subject to provider appetite and eligibility.
The product should fit the business
We help establish whether a loan, invoice facility, asset funding or another structure fits the requirement, rather than starting with whichever product a single bank has available.
Compare the terms that matter
Look beyond a headline rate. We help you understand the fees, repayment pattern, security, guarantees and exit conditions relevant to the options being discussed.
Less repeated legwork
A central point of contact helps organise the initial enquiry and information for relevant providers. It can reduce repeated explanations, although lenders may still require their own applications and checks.
Help asking the right questions
We help clarify what providers need and what to check before proceeding. You retain control of the decision and can take independent legal, financial or tax advice where needed.
For this product
Consider factoring, discounting or selected invoices
A growing recruitment business funding payroll may need a different facility from a supplier financing one invoice. We discuss customer concentration, payment terms, credit-control capacity and whether selected invoices or a wider sales ledger should be considered. The provider assesses eligibility, including the quality of the invoices and customers.
Ocean Capital Exchange acts as a broker and introducer, not a lender. We do not make lending decisions or guarantee that a provider will make an offer. Introductions are limited to providers available through our panel; each provider sets its own eligibility, terms and credit decisions.
Meet the Ocean team · Read our company and provider disclosures
Due diligence
What providers assess
A funder will usually want more than a trading history and a stack of invoices. For courier and delivery businesses, the assessment typically looks at who the debtor is, whether the invoice is a genuine and assignable B2B receivable, whether proof of delivery and other supporting records are complete, and whether there are disputes, set-off rights, chargebacks or deductions that could affect collection. Credit control arrangements matter too, especially where the business wants factoring or where a platform controls the payment flow. Applicant credit is relevant, but it is not the only consideration. Availability does not automatically grow with turnover, and a stronger sales figure does not by itself make a ledger fundable. OCE can help organise the information, but the final decision sits with the lender and its own criteria.
- Your customers' creditworthiness
- Providers typically review the creditworthiness of the customers paying your invoices. This can carry more weight than your business's own credit profile, although your business, invoices and sales ledger are still assessed.
- Aged debt profile
- How quickly customers pay and how much of the ledger is overdue.
- Concentration
- How much of the ledger depends on a small number of customers.
- Disputes and credit notes
- The level of disputes, contra trading and credit notes, which affects how reliably invoices convert to cash.
- Contract terms
- Whether customer contracts allow assignment of debts and whether invoices are raised only after delivery.
- Business financials
- Accounts, management information and existing security held by other lenders.
Information often requested
- Aged debtor and aged creditor reports
- Recent filed accounts and current management accounts
- A sample of customer contracts or terms of trade
- Details of existing borrowing and any charges registered over the business
- Bank statements
The documents list is indicative. A provider may ask for more, or less, depending on its process. Ocean Capital Exchange does not make lending decisions. There is no single published set of eligibility rules. Each provider carries out its own due diligence and applies its own criteria, including any turnover or trading history thresholds. Areas commonly reviewed include:
Pricing structure
Costs and repayment
For courier and delivery businesses, a quote should reflect the specific funding requirement. Invoice finance pricing is quote-specific. We do not publish rates because there is no standard rate: pricing depends on the provider, your ledger, your customers and the facility structure. The cost components to look for are:
- Service fee
- A charge for administering the facility, often calculated as a percentage of invoice value or turnover, sometimes with a minimum annual amount.
- Discount charge
- The cost of the money advanced, usually calculated daily on funds drawn, often expressed as a margin over a reference rate.
- Set-up and arrangement fees
- One-off charges for establishing the facility, where the contract includes them.
- Minimum usage or minimum fees
- Charges that apply if your volumes fall below an agreed level.
- Audit and ancillary fees
- Charges for periodic ledger audits, same-day payments, refactoring overdue debts or credit checks, where applicable.
- Termination fees
- Charges for leaving before the end of a minimum term or without the required notice.
Repayment and settlement
- Advances are normally settled from customer payments rather than by scheduled repayments from your bank account.
- Charges are typically deducted from the retention before the balance is released.
- Where a customer does not pay within the agreed period, a recourse facility can require you to repay the advance, or the provider may deduct it from other funds due to you.
- Exiting a facility usually means settling outstanding advances, which can require refinancing or a run-off of the ledger.
Checklist for comparing quotes
- 1.Advance rate and how eligible debts are defined
- 2.Service fee basis and any annual minimum
- 3.Discount charge basis and reference rate
- 4.Concentration limits and customer credit limits
- 5.Recourse period and treatment of overdue invoices
- 6.Minimum term, notice period and termination charges
- 7.Guarantees, indemnities and security required
Worked illustration
Invoice finance calculator for courier and delivery businesses
New to invoice finance? Choose Quick estimate, enter your outstanding invoice value and explore factoring, invoice discounting or spot factoring with clearly labelled example assumptions. Providers typically focus on your customers' creditworthiness, so your business's own credit profile may carry less weight. Your business and invoices are still assessed, and the profiles illustrate the overall funding scenario rather than your business's credit alone. Already have provider figures? Choose Compare my quote to enter the exact advance percentage, charges and payment terms. Estimates are illustrations, not lender offers.
Illustrative example only
Your actual quote may be entirely different after a lender or finance provider reviews your financial information and funding requirements. These figures are not a lending decision or an offer of finance.
Your estimate
Enter your outstanding invoice value to see an estimate.
0 of 1 required figures entered
Advance, charges and retention
Enter your invoice amount, advance rate, service fee, annual discount charge, days until customer payment to see the breakdown.
2 of 7 required figures entered
Illustrative only, not a binding finance offer. Costs vary by lender and applicant; additional fees may apply and eligibility is subject to assessment. Ocean Capital Exchange is an introducer, not the lender. Invoice collection, debtor quality, recourse and facility-wide minimum charges are not assessed. How this calculator works.
Discuss your requirements with the OCE team. No calculator figures are required.
Want to discuss these figures? Contact OCE. Calculator figures are not transferred automatically, so please include any you want us to review.
Industry guides
Finance for your industry
Explore how this type of finance can work for your business, including common uses and points to consider.
- Building maintenance
- Civil engineering
- Cleaning companies
- Commercial landscaping
- Construction recruitment
- Construction subcontractors
- Courier and delivery businesses
- Electrical contractors
- Engineering companies
- Engineering subcontractors
- Facilities management businesses
- Food and drink wholesalers
- Freight forwarding
- Haulage and logistics
- Healthcare staffing
- IT recruitment
- Managed IT services
- Manufacturing businesses
- Marketing agencies
- Mechanical contractors
- Packaging suppliers
- Printing companies
- Recruitment agencies
- Security companies
- Temporary staffing
- Timber merchants
- Waste management
- Wholesale and distribution
Invoice finance FAQs for courier and delivery businesses
Still unsure? Call +44 20 7183 2026.
Can proof of delivery alone make a courier invoice eligible?
No. Proof of delivery is useful evidence, but it does not by itself make an invoice fundable. The invoice still has to be a valid, unpaid B2B receivable with no unresolved dispute, deduction issue or contractual restriction that would affect collection. The debtor type, payment terms and assignability all matter as well.
What is the difference between factoring and discounting for couriers?
Factoring normally includes collections, so the funder takes on the debtor chasing process. Discounting normally leaves credit control with the business, which continues to manage debtor contact itself. Both structures use invoices as the basis for funding, but they suit different operations and different customer relationship models.
Are platform settlements the same as assignable invoices?
Not always. Some platform payments are based on a direct invoice to a business customer, but others are settlement balances created after commissions, adjustments or deductions. The legal and operational structure matters because the funder needs to know whether there is a real receivable that can be assigned and collected.
Does spot factoring work for only some delivery invoices?
Yes, spot factoring is designed for selected invoices rather than the whole ledger. That can help if only certain customers or contracts are suitable. Even then, each invoice still has to pass the usual checks on debtor quality, validity, disputes and contractual terms.
Will a busy turnover automatically make more invoices eligible?
No. Turnover alone does not determine eligibility. A funder will also consider debtor concentration, invoice quality, the strength of the supporting records and the contract terms behind the receivable. A larger sales figure does not automatically mean a larger fundable ledger.
What should a courier business prepare before speaking to a broker?
It helps to have recent aged debtor information, sample invoices, proof of delivery records, customer terms, details of any platform arrangements and an understanding of which invoices are directly raised to business customers. That makes it easier to separate clear receivables from balances that need specialist review.
What is the difference between factoring and invoice discounting?
In factoring, the provider normally manages your sales ledger and collects payment from customers. In invoice discounting, your business normally keeps its own credit control, and customers pay into an account controlled by the provider. Discounting generally needs stronger internal controls and reporting.
How much of an invoice can be advanced?
Each provider sets its own advance rate for each facility, based on its assessment of your customers and ledger. There is no universal figure. The advance applies only to invoices the provider treats as eligible.
Whose credit profile do providers assess, and what documents will I need?
Providers typically focus on the creditworthiness of the customers paying your invoices. Your business's own credit profile may therefore carry less weight than it would for a traditional business loan, but it is not ignored. Providers still review your financial position, customer payment history, overdue invoices, customer concentration, disputes, credit notes and contract terms. Expect to be asked for aged debtor and creditor reports, accounts, management accounts and sample customer terms. Exact requirements are provider-specific.
Will my customers know I am using invoice finance?
Under factoring, customers will usually know because the provider collects payment. Invoice discounting can be arranged on a confidential basis, but only where the provider agrees, and confidentiality can be withdrawn under the facility terms, for example if the provider needs to collect directly.
What happens if a customer does not pay?
Most facilities are with recourse: if an invoice remains unpaid beyond the agreed period, you must repay the advance or the provider deducts it from other funds due to you. Protection against a customer’s insolvency is only included where separately agreed, usually at extra cost and subject to limits.
Do I have to finance my whole sales ledger?
Many facilities cover the whole ledger. Some providers offer selective or single-invoice arrangements that fund chosen invoices or customers. Whole-ledger facilities and selective facilities are priced and structured differently, so compare like with like.
Which fees should I compare between quotes?
Compare the service fee and any annual minimum, the discount charge and its reference rate, set-up fees, audit and ancillary charges, minimum usage terms, the minimum contract period and termination fees. The headline advance rate alone does not show the total cost.
How are advances repaid, and when do I receive the retention?
Advances are usually settled from your customers’ payments into the collection account. The provider then deducts its charges from the retention and releases the balance to you. Timing of releases depends on the facility terms.
Can invoices in foreign currency be financed?
Some providers will fund export invoices or invoices in other currencies, subject to their criteria for overseas customers. Invoice finance does not by itself protect you from exchange rate movements between invoicing and payment; currency risk should be considered separately.
How is the calculator result worked out?
The advance is the invoice multiplied by the advance percentage. The discount charge is the annual rate applied to the chosen basis (the advance or the full invoice) for the days outstanding on a 365-day year. The service fee is a percentage of the invoice. The retention released when your customer pays is the invoice less the advance and charges deducted at settlement. All figures are illustrative.
Independent background reading
These independent sources explain general concepts. They do not endorse Ocean Capital Exchange or confirm our providers, product availability or terms. Your provider’s agreement takes precedence over an illustration.
Important information
Ocean Capital Exchange Ltd introduces businesses to third-party invoice finance providers. We are not a lender and do not make credit decisions. Any facility is provided under the provider's terms and is subject to its assessment of your ledger and customers.
The calculator illustrates a single invoice using the rates you enter. It is not a quote and actual charges, minimums and fee conventions vary by provider.
Discuss funding for courier and delivery businesses
Talk to Ocean Capital Exchange about invoice finance for courier and delivery businesses. We can help you assess the product fit and discuss your requirements with relevant providers.
- Or call
- +44 20 7183 2026
- Office
- 73 Watling Street, London, EC4M 9BJ