Invoice Finance Eligibility Checker

Invoice finance providers look at several key factors when assessing eligibility. The most important criteria are:

• Trading history: Most providers require 12-24 months of trading, though some specialist providers work with newer businesses (6+ months) if you have strong customer contracts.
• Annual turnover: Minimum thresholds are typically £100k-250k. Below this, invoice finance is often not cost-effective or providers won't consider you.
• Customer type: Invoice finance is designed for B2B businesses (selling to other businesses). B2C businesses (selling to consumers) require specialist consumer invoice finance, which is rare and expensive.
• Payment terms: Standard B2B payment terms (30-90 days) are ideal. Very short terms (<14 days) make invoice finance less beneficial. Very long terms (>120 days) are often rejected.
• Customer concentration: Providers prefer diversified customer bases (no single customer over 20-30% of revenue). Heavy reliance on 1-2 customers is high-risk and leads to lower advance rates or rejection.
• Invoicing consistency: Regular, predictable invoicing is preferred. Sporadic or highly seasonal invoicing can trigger minimum monthly fees and may not be cost-effective.
• Dispute rate: Low dispute rates (customers paying invoices as agreed, rare quality/delivery issues) are essential. High dispute rates are a major red flag and can lead to rejection or very low advance rates (60-70%).

This eligibility checker assesses all these factors and gives you a clear picture of where you stand. Use it to understand if invoice finance is worth pursuing or if you should address certain issues first.