Invoice finance lets businesses access cash tied up in unpaid invoices without waiting for customers to pay. This guide explains how it works, what it costs, and whether it's right for your business.
Last reviewed 21 August 2026
Invoice finance is a great way to help businesses stay on top of day-to-day running costs.
However, some aspects of it aren’t great.
You have to tell customers to pay invoices to the finance company, which means telling them you’re getting finance. It’s kind of embarrassing.
You also have to use it for all of your invoices, rather than just the ones you need finance for. It’s kind of expensive.
FundTap gives you the benefits of invoice financing without these kinds of issues.
Why use invoice financing?
Growing a business requires investment:
- Paying bills
- Covering set up costs
- Purchasing equipment
- New product development
- Hiring staff
- Purchasing supplies
When you don’t have the cash to invest upfront, you need business finance.
Invoice financing with FundTap is faster and easier to get than a bank loan. If you use it to its potential, it’s cheaper too.
Many small businesses don’t have the collateral to secure a loan against. You may also only need a small amount, but lenders have large minimum loans that come with higher fees.
Invoice financing is ideal when you need cash fast. You don’t need to carry long-term debt, and it can also be used alongside a bank loan to reduce the amount you have to borrow.
FundTap vs traditional invoice financing
FundTap helped us to grow by HOW MUCH??
FundTap has been loved by customers for more than 12 years.
The typical FundTap customer is invoicing about 28% more a year on (median annual invoicing growth across FundTap customers, measured July 2026).
If you’d like to learn more – find out how it works here.
Find out more
FundTap partners with finance professionals looking to help their clients find innovative, business-friendly finance.
Frequently Asked Questions
How does invoice finance work?
Select an outstanding invoice and receive funds the same day. When your customer pays, the advance is settled. You choose which invoices to fund.
Is invoice finance a loan?
No. You’re accessing money you’ve already earned. There’s no new debt on your balance sheet.
What does invoice finance cost?
FundTap fees start from 4%. No monthly fees, setup fees, or minimum volumes.
