Cash flow finance
Invoice factoring Ireland: funding with collections
Invoice factoring in Ireland gives your company cash against its invoices and hands the chasing of customer payments to the factor.
- How long
- Ongoing facility
- Depends on the lender and the deal
- How fast
- Around 2 to 3 weeks
- Typical; never guaranteed
- Our fee
- €0 to you
- The lender pays us commission
Quick eligibility check
See what your company could borrow
Step 1 of 3 · about 60 seconds
About 60 seconds · no credit search · not recorded on the Central Credit Register
Prefer to talk? +353 1 536 9910- How long
- Ongoing facility
- Depends on the lender and the deal
- How fast
- Around 2 to 3 weeks
- Typical; never guaranteed
- Our fee
- €0 to you
- The lender pays us commission
- Irish limited companies
- Several lenders, one request
- No fees for your company
- No obligation
At a glance
Invoice factoring at a glance
around 2 to 3 weeks
- Irish limited companies
- Often 6+ months trading
- Invoices
- 1
Tell us what you need
Three taps: purpose, amount, business type. About 60 seconds, no credit search and not recorded on the Central Credit Register.
- 2
We match you to lenders
We check your profile against lender criteria and approach only those likely to consider it. One request, only to lenders likely to consider it.
- 3
Compare any offers
See the rate, fees, security and any personal guarantee side by side before you decide anything.
Lenders we work with
We are a broker, not a lender. Lender names and logos are trademarks of their owners and are shown with permission. Their inclusion does not mean the lender endorses Welcome Finance. Finance is subject to each lender’s own approval, which is not guaranteed.
About invoice factoring
Invoice factoring, sometimes called debt factoring, is invoice finance with a credit control service attached. The factor takes an assignment of your invoices, advances most of their value, then runs your sales ledger: it sends statements, chases overdue accounts and receives payment from your customers. Bibby Financial Services Ireland, for example, advertises advances of up to 90% of invoice value.
Because the factor contacts your customers, they normally know you use it; a few providers offer a confidential version where chasing is done in your name. Factoring is aimed at younger and smaller companies that do not yet employ a credit controller, or whose owners would rather spend time on sales and delivery. PTSB, which refers customers to Bibby, describes it as suited to smaller businesses without an established accounts team.
If you already run credit control in-house and want to keep it, see our invoice discounting page, and read our guide to factoring vs invoice discounting for a direct comparison.
What it’s used for
- Outsourcing the chasing of overdue accounts
- Freeing cash while customers take 30 to 90 days
Who it’s for
- Younger B2B companies with a first or fast-growing sales ledger
- Owner-managed companies with no credit controller
- Companies whose customers routinely pay late
- Sectors with many smaller invoices, such as haulage, services and recruitment
No credit search · not recorded on the Central Credit Register · about 60 seconds
Invoice factoring calculator
Estimated cash released
€127,500
- Service fee / month
- €2,250
- Discount charge / month
- €550
- Indicative total cost / month
- €2,800
Illustrative only. Actual rates, fees and terms depend on your circumstances and the lender. This is not an offer of finance.
How invoice factoring works
- 1
Ledger takeover
The factor loads your customers onto its system and writes to them with its payment details.
- 2
Invoices assigned
Each invoice you raise is assigned to the factor, which pays an agreed advance.
- 3
Factor collects
Its credit control team sends statements, makes reminder calls and banks receipts.
- 4
Balance settled
When a customer pays, you receive the remainder minus the service fee and discount charge.
Types of invoice factoring
Recourse factoring
Your company carries the bad-debt risk and refunds advances on invoices that are never paid.
Non-recourse factoring
The factor takes the risk of approved customers’ insolvency, for an extra fee.
Confidential factoring
Offered by some factors; chasing is done in your company’s name.
Typical eligibility
Every lender sets its own criteria. These are common starting points. We’ll tell you which lenders are likely to consider your business.
- Irish limited company invoicing business customers on agreed credit terms
- Customers the factor is willing to collect from
- Completed work or delivered goods, with proof of delivery
- Clean paperwork, without contra trading or frequent disputes
What you’ll usually need
- Aged debt report listing each customer
- Most recent filed accounts
- Your standard terms of trade and a sample of invoices
- Photo ID and proof of address for each director
Advantages
- Collections handled by specialists
- Non-recourse options move customer insolvency risk to the factor
- Open to companies too small for bank discounting
Things to consider
- Customers deal with the factor, not you
- Service fee is higher because it pays for collections
- Minimum terms and exit fees are common
Rates, fees and costs
Factoring fees come in two parts. The service fee covers ledger management and collections and is usually a percentage of the invoices you assign, which is why factoring costs more than discounting. The discount charge is interest-like and applies only to the money advanced, until the customer pays. Non-recourse, set-up, audit or minimum monthly fees may be added. Ask for the expected annual cost based on your own turnover.
We are paid commission by the lender when finance completes. We do not charge your company a fee and never ask for payment upfront.
Example (for illustration only): a company assigns a €30,000 invoice to a factor, which then collects payment from the customer. If the factor’s offer advanced 80% of the invoice, the company could draw €24,000 soon after raising it. The factor’s charges include its service fee for running the sales ledger and chasing payment. When the customer pays the €30,000, the factor takes back its €24,000 and its charges, say €600 if that is what the offer showed, and the remaining €5,400 goes to the company. The real cost depends on the factor’s offer, and finance is subject to status and the factor’s approval.
With recourse factoring, your company refunds advances on invoices that go unpaid, usually by deduction from later funding. Non-recourse terms normally apply to customer insolvency, not disputes about the work. Factors usually take a charge over company assets and may want director indemnities. Any asset or guarantee given as security may be at risk if repayments are not kept up. Directors should take independent legal advice before signing a personal guarantee. Check the minimum term, notice period and how the factor will treat your customers before you sign.
Finance is subject to status and the lender’s approval. Welcome Finance is a commercial finance broker, not a lender. We arrange finance for limited companies for business purposes only; this is not regulated by the Central Bank of Ireland.
Compare invoice factoring with alternatives
Not sure this is the right fit? Here’s how it compares with the options businesses most often weigh it against.
Invoice factoring
This page- Amount
- Varies
- Term
- Ongoing facility
- Typical speed
- Usually 1 to 3 weeks to set up
- Security
- Invoices
- Typical min. trading
- 6 months
- Amount
- Varies
- Term
- Ongoing facility
- Typical speed
- Some providers fund within 24 hours once set up
- Security
- Invoices
- Typical min. trading
- 6 months
- Amount
- Varies
- Term
- Ongoing facility
- Typical speed
- Usually 2 to 4 weeks to set up
- Security
- Invoices
- Typical min. trading
- 24 months
- Amount
- Varies
- Term
- Per invoice; usually no long contract
- Typical speed
- Usually within days; not guaranteed
- Security
- Invoices
- Typical min. trading
- 6 months
| Detail | This page Invoice factoring | Invoice finance | Invoice discounting | Selective invoice finance |
|---|---|---|---|---|
| Amount | Varies | Varies | Varies | Varies |
| Term | Ongoing facility | Ongoing facility | Ongoing facility | Per invoice; usually no long contract |
| Typical speed | Usually 1 to 3 weeks to set up | Some providers fund within 24 hours once set up | Usually 2 to 4 weeks to set up | Usually within days; not guaranteed |
| Security | Invoices | Invoices | Invoices | Invoices |
| Typical min. trading | 6 months | 6 months | 24 months | 6 months |
How we work
Invoice factoring: frequently asked questions
What is invoice factoring?
Invoice factoring is funding against your invoices combined with a collection service. The factor advances most of each invoice, often up to 90%, then manages your sales ledger and collects payment from your customers directly. When a customer pays, you receive the remainder less fees. It is also called debt factoring, and it is one of the three main types of invoice finance.
How much does factoring cost in Ireland?
Expect two charges: a service fee, usually a percentage of the invoices you assign, which pays for collections, and a discount charge on the money you actually draw. Set-up and minimum fees can be added. Irish factors do not publish standard prices, so get a written quote showing the expected annual cost for your turnover and customer spread.
How will factoring affect my customer relationships?
Your customers will usually know, because they receive statements from the factor and pay it directly. A professional factor chases firmly but politely, yet you lose some say in how and when key accounts are contacted. Tell important customers before the switch, agree how disputes and queries will be handled, and ask whether a confidential option is available.
Who is invoice factoring best for?
Younger and smaller B2B companies that sell on credit but have no dedicated credit controller, and owners who would rather spend time on sales and delivery than chasing payments. It also suits companies whose customers pay late as a habit. Companies with a strong in-house finance team and a large ledger usually find invoice discounting cheaper.
Which factoring companies operate in Ireland?
Bibby Financial Services Ireland offers factoring, and PTSB refers its business customers to Bibby. The main banks focus mainly on invoice discounting for larger companies, and independent specialist factors also operate. Compare the advance rate, service fee, discount charge, minimum term, notice period and how each factor deals with your customers before choosing.
How quickly does a factor pay out?
Once the facility is running, Irish factors such as Bibby say funds are usually released within 24 hours of raising an invoice. Setting up the facility takes longer, because the factor reviews your customers and ledger and contacts them first. Timing is not guaranteed, and invoices with disputes or missing proof of delivery can be held back.
Can I leave a factoring agreement early?
Usually only after a minimum term and with notice. Leaving early can trigger termination fees, and your company must repay any outstanding advances, often by moving the ledger to another provider or to invoice discounting. Read the minimum term, notice period and exit charges before you sign, and diarise the notice date.
Is factoring the same as invoice discounting?
No. Both advance cash against your invoices, but with factoring the provider collects from your customers, while with invoice discounting your own team keeps collecting and the facility is usually confidential. Our invoice discounting page and our guide to factoring vs invoice discounting explain when each one makes sense.
Guides on invoice factoring
- Comparison
Factoring vs invoice discounting: which suits your company?
Factoring vs invoice discounting for Irish companies: how each works, what it costs, recourse, confidentiality and selective invoice finance, so you can choose.
- News
Invoice finance statistics: BPFI figures for Q1 2026
Invoice finance statistics for Ireland: BPFI’s Q1 2026 report shows over €1.3bn advanced to 1,351 businesses at end-March and debtor days down to 43.
Check in 60 seconds
Check your invoice factoring eligibility
Three quick taps. No credit search, not recorded on the Central Credit Register. No obligation.
- No credit search, not recorded on the Central Credit Register
- One request, several lenders: we’re a broker, not a lender
- For limited companies registered in Ireland
- No fees for your company: we’re paid commission by the lender
Step 1 of 3 · about 60 seconds
Sources: Bibby Financial Services Ireland: Invoice Factoring (checked 22 Oct 2026); PTSB: Invoice finance with Bibby Financial Services Ireland (checked 22 Oct 2026); Bibby Financial Services Ireland: Funding solutions (checked 22 Oct 2026); BPFI invoice finance figures for Q1 2026, reported by The Irish Times, 14 Aug 2026 (checked 22 Oct 2026); AIB Commercial Finance: invoice finance (confidential invoice discounting) (checked 22 Oct 2026).