Are There Industries That Can't Use Invoice Finance?

Invoice finance requires B2B invoices issued on credit terms. So businesses that sell directly to consumers (shops, restaurants, hairdressers), businesses paid cash on delivery, subscription businesses without traditional invoices, and anyone invoicing individuals rather than companies cannot use it. But every B2B industry - from recruitment to manufacturing to professional services - can.

Businesses That Cannot Use It

• B2C businesses - shops, cafes, restaurants, consumer services. No business invoice to finance.
• Cash on delivery - if customers pay immediately, there is no invoice to advance against.
• Subscription/SaaS - if revenue comes via recurring card payments rather than invoices, it does not qualify. (Some SaaS businesses do issue invoices to enterprise clients - those invoices can be factored.)
• Invoicing individuals - providers need commercial debtors, not consumers.
• Retainer-based work billed in arrears without invoices - if there is no formal invoice, there is nothing to factor.

Industries Providers Prefer

Recruitment, staffing agencies, professional services, IT contractors, transport and logistics, and wholesale distribution are all popular with providers because invoices are straightforward and disputes are relatively rare. Construction works too but providers apply lower advance rates because of stage payments, retentions, and application-for-payment processes.

If you are B2B and issue invoices on credit terms, there is almost certainly a provider who will work with your industry. The question is not whether you qualify - it is which provider offers the best terms for your sector.