Elevate Your Working Capital with Invoice Backed Lending
Struggling with 30, 60 or 90-day payment terms? You're not alone. Many SMEs watch invoices pile up while expenses keep ticking. That gap can choke growth, stall payroll and dent supplier trust. Peer-to-business invoice financing bridges that gap, letting you turn unpaid invoices into working capital almost instantly. It's flexible, transparent and community driven.
Ready to empower your business through swift, reliable funding? Empowering Local Growth with Invoice Backed Lending
In this guide we'll dissect how invoice backed lending works, compare it with established solutions like SPS Commerce's invoice financing, and show why our peer-to-business platform delivers higher returns, tax-free options via IFISA, and real community impact. By the end, you'll have a clear roadmap to accelerate cash flow and keep your business humming.
What Is Invoice Backed Lending?
Invoice backed lending, often called invoice financing, is a form of asset-based lending where unpaid invoices become collateral. Unlike factoring, the business retains collection responsibilities, choosing which invoices to fund. Here's how it differs:
• Invoice Factoring
• You sell invoices and hand over collections
• Third party manages customer payments
• Often covers all invoices, no opt-in choice
• Invoice Backed Lending
• You keep control of relationships and collections
• Select specific invoices to fund
• Maintain direct contact with trading partners
In plain terms, you upload or submit an invoice, an investor or lender advances you up to 90 % of its value, and you repay the advance (plus fees) when the customer settles. It's less paperwork and far quicker than traditional bank loans, yet keeps your customer relationships intact.
Traditional vs Peer-to-Business Approach
Millions of SMEs turn to banks or large financing providers. SPS Commerce's invoice financing, powered by Kanmon, is a solid choice. They offer same-day approvals, clear fee structures (2 %–4.5 % for 30-day terms), and no impact on credit score thanks to a soft pull. You can even fund invoices from non-SPS trading partners. That's convenient.
But there are limitations:
• Centralised model: Kanmon sets credit limits based on internal criteria
• No direct investor involvement: You tap a commercial lender, not a community of local backers
• Fees can rise if your terms extend beyond 30 days
Here's where our peer-to-business platform comes in. We combine the speed of invoice backed lending with a community focus:
• Local and individual investors co-fund invoices
• Transparent risk assessments and AI-driven credit scores
• Integrated Innovative Finance ISA (IFISA) for tax-free returns
• Competitive rates thanks to risk-adjusted clarity
• A commitment to community growth and economic resilience
By matching you with investors who understand local markets, you enjoy tailored credit limits, flexible fees, and a network invested in your success. No big bank bureaucracy, just a collaborative funding experience.
How Our Peer-to-Business Platform Works
Navigating our invoice backed lending process is a breeze:
-
Enrol Your Business
• Sign up in under 10 minutes
• Provide basic company details and bank connection -
Get Matched & Approved
• Soft credit check, no score hit
• AI-powered assessment delivers your personalised credit limit -
Select Invoices to Fund
• Choose one or multiple invoices
• Specify repayment terms that suit your cash flow -
Receive Funds
• Payment lands within 48 hours
• Monitor your balance and fee schedule in real time -
Repay & Repeat
• Automatic repayment from your bank account
• Early repayment allowed without penalty
Each step is supported by clear dashboards, educational resources and a community forum where SMEs and investors share insights. You're never left guessing.
Halfway through the journey and keen to see the difference? Discover invoice backed lending for SMEs
Benefits for Small Businesses
• Immediate Working Capital
No more waiting months for invoice clearance. Keep suppliers paid, staff motivated, projects on track.
• Maintain Customer Relationships
You handle collections, safeguarding rapport and negotiating power.
• Customisable Financing
Opt in for just the invoices you need, on terms you choose.
• Transparent Costs
Clear fee structure with no hidden charges. Fees are set upfront based on your term length.
• Local Market Understanding
Investors on the platform often know your region's nuances better than a distant bank office.
Attractive Returns for Investors
Investors seeking yields above traditional savings can benefit from:
• High Average Return Rates
Our platform's risk-adjusted clarity has delivered strong historical returns.
• IFISA Integration
Invest via an Innovative Finance ISA and shelter returns from income tax.
• Portfolio Diversification
Spread investments across multiple businesses and sectors.
• Direct Community Impact
Back local enterprises, watch jobs grow and local economies flourish.
Risk Management & Transparency
Peer-to-business invoice backed lending carries risk, but we mitigate it through:
• AI-Driven Credit Scoring
Cutting-edge algorithms assess businesses quickly and fairly.
• Rigorous Due Diligence
Every borrower undergoes a thorough review, including financial history and sector analysis.
• Education & Support
Investors and SMEs access guides, webinars and one-on-one advice.
• Granular Control
Investors choose specific invoices and sectors, avoiding one-size-fits-all risk.
• Community Oversight
A shared platform where feedback and track records boost accountability.
Getting Started in Three Steps
-
Sign Up
Complete our simple online form. -
Verify & Fund
Link your bank account, upload your first invoice. -
Grow & Monitor
Watch funds arrive, track your balance and repeat as needed.
Our platform is open to UK SMEs and investors across Europe. With over £40 million lent to date, we're poised to support the next wave of local economic resilience.
