Invoice Discounting
Borrow against outstanding invoices while keeping your own sales ledger confidentially. Explore how invoice discounting works for UK businesses.
Trade finance: release capital already tied up in trade
Trade finance can release capital tied up in outstanding invoices and import orders, bringing forward money your business has earned or bridging the gap between placing an order and receiving customer payment. This page explains invoice discounting, invoice factoring, import finance and how each can help at a different stage.
Who it suits
Trading activity: businesses waiting for payment on business invoices, or importers buying goods against confirmed customer orders.
Funding gap: money tied up in a debtor book, or a supplier payment that falls due before the customer pays. The relevant product depends on whether the gap is in invoices or an import order.
These are factors to discuss, not a guarantee of eligibility. All finance is subject to status and provider criteria.
Trade finance solutions
Invoice Factoring
Transfer invoice collection to a specialist factor and receive an advance. Explore how invoice factoring works for UK businesses.
Import Finance
Explore finance for the purchase of overseas goods before they arrive, with repayment once your customer settles.
Banks vs an independent broker
Independent
We have no balance sheet to protect and no product to push. We work independently, matching the requirement to the right lender rather than starting with a product to sell. The conversation starts with what your business needs, not with an existing lending product.
An independent approach means the finance requirement comes first. Trade finance, business lending and capital & liquidity are different funding disciplines, and we tell you which fits before approaching a lender. We present the options clearly and without bias, so the choice remains with your business.
Fast
We take your opportunity to the right lenders simultaneously, creating genuine competition and compressing timelines. This describes how we approach the market, not a promise about an approval or drawdown date. The facility is structured before the opportunity is put to the right lenders.
The purpose of approaching lenders simultaneously is to bring back options that can be reviewed together. We negotiate on your behalf and present those options clearly. Rather than negotiating blind, you can review the offers in the context of the requirement we have already discussed and structured.
Precise
We design the deal before we approach a lender: size, tenor, security and covenants. The structure comes first, so the opportunity we take to market reflects what your business needs. We then match the requirement to the right lender without unnecessary structure or cost.
The starting point is a conversation about your business and what you want to achieve. The product name is only part of that conversation. We identify the right structure and prepare the opportunity properly before going to market, then explain the options clearly before you choose.
How we arrange your facility
Tell us what you need
Tell us about your business and what you are looking to achieve. The starting point is the requirement rather than a finance product. We take the time to understand your business properly and tell you which funding discipline fits before approaching a lender.
This conversation gives us the context for structuring the facility. We work across trade finance, business lending and capital & liquidity, so the discussion can start with the business need rather than assuming that a particular product is the answer.
We structure your facility
We identify the right structure and prepare your opportunity before approaching lenders. The deal is designed first: size, tenor, security and covenants. We match the requirement to the right lender without unnecessary structure or cost, keeping the business need at the centre of the process.
Once the opportunity has been prepared, we approach the right lenders simultaneously. That creates genuine competition and compresses timelines. We negotiate on your behalf, with the structure of the facility established before the opportunity is taken to market.
Review your offers
We bring back competitive options from lenders, presented clearly and without bias. You choose. The offers are reviewed against the requirement and the structure of the facility, rather than treating every offer as the same product. We tell you which fits before approaching a lender.
Our role is to present the options clearly so you do not negotiate blind. We are an independent broker, not a lender. The choice remains with your business, and the facility remains subject to status and the requirements of the finance provider.
We close it
We manage the process through to drawdown, coordinating lenders, lawyers and paperwork. This is the final step in the same process that began with understanding the business need. Our role continues through the placement of the facility, rather than ending when offers are presented.
Tell us what you need, let us structure the facility, review the offers and choose the option that fits. We then manage the steps through to drawdown. All finance remains subject to status; guarantees and indemnities may be required.
Frequently asked questions
What is trade finance?
Trade finance releases capital tied up in outstanding invoices and import orders, either bringing forward money you've already earned or bridging the gap between order and payment.
Which trade finance products does Oku Financial arrange?
Invoice discounting, invoice factoring and import finance.
Does trade finance dilute equity?
No. These facilities release capital tied up in invoices and cross-border trade flows without diluting equity.
How does Oku Financial approach lenders?
We take your opportunity to the right lenders simultaneously, creating genuine competition and compressing timelines.
Is Oku Financial a lender?
No. Oku Financial is a commercial finance broker. We work with a panel of lenders to find funding for UK businesses.
How much can I receive against invoices or purchase orders?
Invoice discounting and factoring typically offer an advance of 75–90% of invoice face value. Import finance can provide an advance of up to 100% of purchase order value. All figures are indicative and subject to status.
What costs may apply to trade finance?
Invoice discounting may have a discount charge of 1.5–3% over Bank of England base rate and a service fee of 0.2–0.5% of annual turnover. Factoring may have a fee of 0.75–2.5% of invoice value and a discount charge of 1.5–3% over base rate (daily). Import finance interest is 1.5–4% over base rate per annum, with an arrangement fee of 0.5–2% of facility. All figures are indicative and subject to status.
Related finance pages
- Invoice Finance
- Invoice Discounting
- Invoice Factoring
- Import Finance
- Finance for importers and wholesalers
- Compare trade and invoice finance
Want to discuss your requirements?
Tell us about your business and what you are looking to achieve.