Invoice Finance
Working Capital Within Structured Funding Solutions
Invoice finance is commonly used as part of a broader working capital or acquisition funding structure, providing liquidity against accounts receivable.
Oakmead Finance advises on how invoice finance fits within the wider capital structure. The aim is to support cashflow without limiting the business operationally or strategically.
How Invoice Finance Is Used
Invoice finance is most often used to:
- Support working capital requirements during periods of growth
- Release liquidity as part of an acquisition funding structure
- Improve cashflow predictability and resilience
- Operate alongside term debt or asset-based facilities
Typical Structure
While each facility is structured to reflect the specific characteristics of the business, invoice finance arrangements commonly involve
- Revolving facilities secured against trade receivables
- Advance rates typically up to 85–95% of approved invoices
- Confidential or disclosed structures, depending on operational preference
- Integration with existing finance systems and controls
Our role is to advise on structure, lender selection and advance rates, so facilities work with the operational realities of the business.
Advisory Considerations
When advising on invoice finance, we focus on:
Quality and concentration of the debtor ledger
Suitability of confidential versus disclosed structures
Interaction with other funding facilities and covenants
Operational impact on the finance function and customers
Relationship to Other Funding Solutions
Invoice finance is often structured alongside:
- Cashflow lending to support acquisitions or growth
- Asset-based lending in more complex or leveraged transactions
- Asset and equipment finance to fund capital expenditure
We advise on how invoice finance fits within the wider funding structure, rather than in isolation.
Initial Discussion
If you would like to discuss working capital requirements or the role of invoice finance within a wider funding structure, Oakmead Finance is happy to arrange a confidential, no obligation discussion.
Contact an Adviser