My Invoice Finance

RBS Business Finance explainer video

Find out how RBS can help your business and what invoice finance they offer.

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About RBS Invoice Finance

RBS Invoice Finance is part of the Royal Bank of Scotland Group and is one of the largest providers of invoice finance in the UK. Our network of offices across the UK means that we are able to offer our customers a personal service that’s responsive to local needs. Our team consists of dedicated Relationship Managers, who match business objectives to effective products and solutions. They work with our customers on a day-to-day basis; they are ably supported by named assistants who ensure the smooth and efficient running of our financial services.

Because we are part of the RBS Group we work closely with banking colleagues, often co-located on the same premises. Many customers find that this relationship works to their advantage, as it gives them access to a wide range of complementary financial options.

Security may be required. Product fees may apply.

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At first glance, the whole idea of invoice financing can seem a little bit confusing. And when you’re then told that “invoice finance” is actually an umbrella term, you may begin to wonder what you’re letting yourself in for. Don’t. We’re not here to confuse. We’re here to guide you towards the most suitable financial solution.

Remember, this is only a guide. There’s a pretty good chance that you’ll recognise your business and your needs in the description of these services, but if you’re not sure, feel free to contact us.

We consider every business on its merits and on its own terms. However, there are a few initial criteria we must insist upon. If you’re interested in invoice discounting or factoring, then we typically look for strong proof of debt – usually in the form of delivery notes or time sheets. Importantly, you must sell to other businesses – not consumers – and you must invoice those businesses. If you get paid immediately or in cash, then invoice finance is not the solution you need.

Take a look at the chart below to compare the various invoice finance options available.

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RBS Invoice Finance Solutions in Detail…

* Advance level for assets other than trade debtors is established based on third party valuation.

Security may be required. Product fees may apply.

Types of invoice finance available, explained.

  • In very simple terms, invoice discounting allows you to receive up to 90% of the money you’re owed within 24 hours of submitting an invoice. We advance monies against invoices without your customer knowing.

    Who is invoice discounting for?

    Invoice discounting is mostly aimed at larger businesses (typically above £2m annual turnover). You must have well-established systems and procedures in credit control and sales ledger management.

    So why use invoice discounting?

    Many businesses like the anonymity offered by invoice discounting. With invoice discounting, your customers need never know that you’re using our services. This is particularly important if you have good, solid, long-lasting relationships with your customers: it’s not that you have a problem getting the cash from your customers; it’s just that you need it now, and not in 30, 60, or 90 days.

    Why invoice discounting could work for you

    Invoice discounting is an excellent way to give your business a vital cash injection. You’re effectively borrowing your own money – it’s just that you haven’t had that money paid to you yet. Invoice discounting is ideal if you’re eager to expand your business, but need a little help with the funds required to get you there. We will work with you to ensure the service is simple to operate alongside your existing systems.

    Security may be required. Product fees may apply.

  •      Invoice Discounting with Credit Protection

    Although no business likes to think about it, it’s a fact of life that every day, companies go into formal insolvency.

    In the case where one of these companies is a customer of yours, it can prove extremely difficult to recover what you are owed – or indeed recover anything at all. If your customer fails to pay and you do not have credit protection in place, you will have to repay the funds we have provided against their outstanding invoices.

    For larger businesses this may not be a problem. But for many smaller companies, even a relatively minor cash flow crisis could prove to be a major worry.

    This is where our Invoice Discounting with Credit Protection product steps in – to protect your business from the formal insolvency of a customer.

    How Invoice Discounting with Credit Protection works

    Designed to complement your invoice discounting facility, credit protection is an affordable solution that mitigates the impact of bad debt caused by the formal insolvency of a customer, giving you certainty of payment when things go wrong. Invoice Discounting with Credit Protection can put you ahead of your competitors, allowing you to take on more business and grow with confidence.

    Reducing the risks

    Our Invoice Discounting with Credit Protection includes built-in credit limit analysis for all your customers. This simple step can often help to reduce the risk of bad debts in the first place.

    Security may be required. Product fees may apply.

  •      Factoring

    With factoring, you issue your invoices as normal; we manage the issuing of statements and collect the monies owed to you.

    Who is factoring for?

    Factoring is primarily for smaller businesses who do not have a large finance department and who may have customers who don’t always pay on time. We, in effect, become your credit control service. We advance up to 90% of the value of your invoices. We then collect the payments from your customers and once received pass on the remaining balance of the invoice less our service charge.

    Factoring is a particularly strong option if you’re a smaller business, usually with turnover starting from £250k and up to £2m, and you don’t have the time to chase up unpaid invoices. Plus, conversations over unpaid invoices can be awkward: with factoring, we take care of such conversations, allowing you to focus on customer relationships and the sourcing of new orders. Factoring allows you to use your time and resources in a more efficient way: we chase the invoices on your behalf, leaving you to move your business forward in whatever way you see fit – without the nagging thought at the back of your mind that you’re not getting what is owed to you. Furthermore, we can give you a cash injection of up to 90% of your unpaid invoices.

    How can we do this?

    We have the people and the systems in place to make the collecting of invoices a relatively easy process – certainly much easier than it is for a great many smaller businesses. We make our money by charging you a percentage of the turnover you put through the facility. This percentage is subject to change: please refer to pricing for a more detailed explanation. You receive the remaining percentage of every invoice you issue. However, you do not have to wait around for those invoices to be paid – or hope that they will be paid at all.

    Why factoring could work for you

    When you become our client with factoring you can receive up to 90% of the value of an invoice within 24 hours of issue (the rest – less our charge – is paid on settlement of the invoice), so you can put your money to work immediately. Factoring allows you to address your long- and mid-term business plans, safe in the knowledge that your sums are not awry: you know exactly what is coming in, which is both a major relief and a strong platform for you to plan for the future.

    Security may be required. Product fees may apply.

  •      Factoring with Credit Protection

    Although no business likes to think about it, it’s a fact of life that every day, companies go into formal insolvency.

    In the case where one of these companies is a customer of yours, it can prove extremely difficult to recover what you are owed – or indeed recover anything at all. If your customer fails to pay and you do not have credit protection in place, you will have to repay the funds we have provided against their outstanding invoices.

    For larger businesses this may not be a problem. But for many smaller companies, even a relatively minor cash flow crisis could prove to be a major worry.

    This is where our Factoring with Credit Protection product steps in – to protect your business from the formal insolvency of a customer.

    How Factoring with Credit Protection works

    Designed to complement your factoring facility, credit protection is an affordable solution that mitigates the impact of bad debt caused by the formal insolvency of a customer, giving you certainty of payment when things go wrong. Factoring with Credit Protection can put you ahead of your competitors, allowing you to take on more business and grow with confidence.

    Reducing the risks

    Our Factoring with Credit Protection includes built-in credit limit analysis for all your customers. This simple step can often help to reduce the risk of bad debts in the first place.

    Security may be required. Product fees may apply.