Invoice Finance for Hospitality Businesses

What Is Hospitality Invoice Finance?

Think of it as an early advance on the corporate bookings, events, or wholesale orders you have already delivered. Instead of waiting a month or two for a large corporate client to settle up, a lender advances you the bulk of the cash right away.

You can use that money to pay your wholesale suppliers, cover the weekly payroll, or invest in site improvements. When your client finally pays the invoice, the lender clears the remaining balance and sends you the rest of the funds, minus a small service fee.

We connect hospitality founders with FCA-approved lenders who routinely advance up to 95% of an invoice's value. Once a facility is up and running, you will often see the funds hit your account within 24 hours.

Invoice Factoring or Invoice Discounting?

You will see both of these terms when looking for funding. They operate very differently.

Invoice factoring means the lender takes over your credit control. They chase late payments for you, freeing up your admin team, but your clients will know a lender is involved.

Discounting is an entirely different approach. You keep complete control over your own sales ledger and chase your own payments. The facility runs quietly in the background, which is why it is often called confidential invoice finance. It is the preferred route for premium hospitality brands that want total privacy.

How Much Does Hospitality Invoice Finance Cost?

There are fees involved. However, these are generally much lower than the high interest you would pay on an unsecured bank loan.

If you choose a discounting facility, you cut out the collection fees associated with invoice factoring. You will usually pay a service fee of 0.5% to 5%, depending on the lender. Providers carefully assess how reliable your clients are to figure out what to charge you.