Invoice finance your customers won’t see.
Fund your unpaid invoices while every customer keeps dealing with you, paying you, and hearing from your team. See whether participating UK lenders could offer a confidential facility.
No obligation. Your customers won’t be contacted as part of the comparison process. Facilities from £25,001.
- Invoice from
- Your business Ltd
- Pay to
- Your bank details
- Chased by
- Your credit control team
- Mention of a lender
- None
- Cash released to you
- A set % of eligible invoices
What is confidential invoice finance?
Confidential invoice finance lets you borrow against unpaid invoices without telling your customers. You invoice, chase and collect under your own name, while a lender advances cash against the ledger in the background.
In most cases this is confidential invoice discounting. Your customers pay into an account in your business name, but the lender controls it. Nothing on your invoices or statements refers to the lender.
Businesses choose it when customer relationships are sensitive. Some worry a third party in the payment chain might unsettle large customers or signal cash pressure. Others simply want to keep full control of how customers are treated.
The trade-off is that lenders rely completely on your processes. Expect stricter eligibility, regular ledger reporting and periodic audits. If your credit control is not strong yet, invoice factoring may be more realistic.
How confidential invoice finance works
From the outside nothing changes. Behind the scenes the facility follows a simple cycle.
- 1
You invoice as normal
Invoices go out in your name with your usual terms and payment details.
- 2
You report the ledger
Your sales ledger is shared with the lender, usually through an accounting integration.
- 3
You draw funding
You draw cash up to your available limit, based on eligible invoices.
- 4
Customers pay you
Payments land in your business-named account controlled by the lender, and your balance reduces.
Who confidential invoice finance suits
Lenders offer confidentiality to businesses they trust to run the ledger well. These are the businesses that tend to qualify.
Usually a good fit
- You have filed accounts and a steady trading history
- Your credit control is consistent and debts are collected on time
- You are profitable, or close to it, with a healthy balance sheet
- Your customers are established businesses, spread across the ledger
- Customer relationships are valuable enough that you want no third party involved
Worth checking first
- You are a start-up or have recently changed ownership
- Aged debt, disputes or credit notes are frequent
- You rely heavily on one or two customers
- You have had recent losses or county court judgments
- You would benefit from someone else doing the chasing
What lenders look for
Confidential facilities carry more risk for the lender, so underwriting focuses on how well your business runs its ledger.
Ledger quality
A clean aged debtor report with few overdue items and little concentration is the strongest signal you can give.
Financial strength
Lenders review filed and management accounts, profitability and net worth before offering confidentiality.
Credit control process
Expect questions about how you invoice, chase and resolve disputes, and how quickly customers usually pay.
Ongoing checks
Regular reporting and periodic audits keep the facility confidential. Poor results can lead a lender to move to disclosed terms.
Confidential finance compared
Confidentiality is about who collects payment and whether your customers know a lender is involved.
| Invoice factoring | Invoice discounting | Confidential invoice finance | |
|---|---|---|---|
| Who collects payment | The lender | You | You |
| Customers are told | Yes | Usually, though some facilities are confidential | No |
| Credit control | Run by the lender | Run by you | Run by you |
| Typical fit | Smaller or fast-growing businesses without a credit control team | Established businesses with reliable credit control | Businesses that want customer relationships untouched |
| Lender checks | Lender sees every payment | Regular ledger reporting and audits | Stricter reporting, audits and eligibility |
Available products and terms depend on your business, sector, turnover, debtor ledger and lender criteria.
Find lenders that offer confidential facilities
Not every lender offers confidentiality to every business. Factor Now checks your business and ledger against participating lenders’ criteria so you can see who could be a fit.
- 1Tell us about your businessWe verify available Companies House information automatically.
- 2Upload your aged debtor reportIt shows who owes you, how much and for how long.
- 3See matching lenders instantlyYour ledger is checked against participating lenders' criteria.
- 4Compare indicative funding and pricingNo waiting for quotes or callbacks.
- 5Progress with the lender you chooseContinue through to formal offer on Factor Now.
| Customer | Current | 1–60 | 61–90 | 91+ |
|---|---|---|---|---|
| Northgate Engineering Ltd | £26,064 | £66,557 | £6,093 | £1,693 |
| Brightway Supplies Ltd | £20,800 | £49,965 | £5,643 | £1,171 |
| Meadowbrook Foods Ltd | £31,129 | £72,750 | £9,771 | £3,729 |
| Total | £77,993 | £189,272 | £21,507 | £6,593 |
Export it from Xero, QuickBooks, Sage, FreeAgent or most other accounting systems. Older and concentrated debts affect how much of a ledger lenders will fund.
Confidential invoice finance questions
Will my customers find out?
With a confidential facility, customers keep dealing with you and paying into an account in your business name. There is no lender branding on invoices or statements. Comparing options on Factor Now does not involve contacting your customers either.
Is confidential invoice finance the same as invoice discounting?
Mostly. Confidential invoice finance usually means confidential invoice discounting. Confidential factoring exists but is less common.
Is confidential invoice finance more expensive?
Pricing depends on the lender and your business. It can be cheaper than factoring because the lender is not running collections, but stricter reporting and audit requirements may add cost.
Can a confidential facility become disclosed?
Yes. If the ledger deteriorates, reporting slips or terms are breached, a lender can usually move the facility to disclosed terms or start contacting customers. Check the terms before you sign.
What do I need to qualify?
Lenders generally want established trading, filed accounts, a well-spread ledger of business customers and consistent credit control. Exact criteria vary by lender.
How much can I release?
Lenders typically advance up to around 85 to 90% of the eligible ledger. Facilities through Factor Now start from £25,001.
Does Factor Now lend?
No. Factor Now is a technology platform and not a lender. Participating lenders carry out their own checks and provide the facility.