Metro Bank Invoice Finance

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How invoice financing works

1
The order
Create an invoice for your customer, showing how much is owed to your business and when payment is due.
2
Cash advance
Send a copy of the invoice to a lender to release up to 100% of its value as a cash sum.
3
Repayment
When it is due, the lender receives the payment from the customer. The lender then sends your business any remaining amount on the invoice that wasn't originally financed, after deducting the prearranged fees.

This comparison service is provided by Touch Financial. Touch Financial is a finance broker, not a lender. Not all products offered by Touch Financial are regulated by the Financial Conduct Authority. They compare invoice financing services from a range of different lenders, aiming to find the one that best suits the needs of their business customers. Touch Financial consultants look at the profile of each business, including cash flow, accountancy needs, and any other specific requirements, to match them with the most appropriate invoice finance provider and product. Touch Financial is authorised and regulated by the Financial Conduct Authority (FRN:727220).

Last updated on 12 May 2022.

Metro Bank Invoice Finance FAQs

What is Metro Bank invoice financing?

Metro Bank and a number of other providers offer invoice financing, a financial product that allows businesses to leverage the value of invoices and generate cash flow to borrow at the times when they need it most.

Why do businesses use invoice financing?

The invoice financing Metro Bank and other providers offer helps businesses that are experiencing late payment of client invoices. Constraints such as this restrict cash flow and prevent businesses from being able to make big investment decisions in order to grow.

Will invoice financing create new debt for me?

No, invoice financing with Metro Bank or any other provider is a sale in which your invoices serve as effective collateral. As opposed to a business loan, invoice financing does not create new debt, as it’s based on the money you earn as you operate as a business.

Is invoice financing ideal for late payment?

Yes, Metro Bank invoice financing can be a solid solution to handling late payment problems with clients. This is because invoice financing facilities can allow you to sell your finances to the lender or factoring company, before the provider offers you a cash injection. This can be up-front, even if invoices remain unpaid or outstanding.

What fees do invoice financing providers charge?

The fees invoice financing providers charge differ depending on who you approach. Generally, however, most providers (including Metro Bank) charge only the equivalent of a small percentage of the total sum you wish to borrow from your invoices. This is subtracted from the total sum.

Can I be found liable because of failed invoice payments?

Only if you specifically agreed to absorb the risk of failed invoice payment by signing a non-recourse mechanism with your lender. If you signed a non-recourse agreement, however, you can continue to borrow while the lender absorbs the costs.

Is it more costly to use a non-recourse invoice financing arrangement?

Yes, it is costlier to agree to a non-recourse mechanism through invoice financing. This is because your provider is assessing risk, and they have to absorb the cost of failed invoice payments. As a result, they will often charge a higher fee to compensate.

What is invoice factoring?

Invoice factoring is a form of Metro Bank invoice financing, in which you sell your invoices to a factoring company via your lender. This means the factoring company takes charge of liaising with clients over incoming invoices. In the meantime, your lender provides a cash injection as a percentage of the invoices.

Can I use invoice financing in a more discreet way?

If you wish to use Metro Bank invoice financing more discreetly, Metro Bank (as well as other comparable providers) will often allow you to use invoice discounting instead. Invoice discounting means you take charge of handling incoming invoices, so your client doesn’t need to be made aware of your wish to leverage your sales ledger.

Where can I compare the best invoice financing products?

To provide the ideal invoice financing products for your own business requirements, get in touch with Touch Financial. This platform offers you access to a trained consultant who will help guide you towards finding a provider with the best offers for this product. Just follow the links at the top of this page to get started.

Services offered by this provider may change over time. Always check Ts&Cs.

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