How Invoice Financing Works
From application to first funding in 1 to 3 business days. Here is the complete process, step by step.
TL;DR
The invoice financing process has four phases: apply and get approved (1 to 3 days), submit invoices (minutes), receive advance (within 1-2 hours), and your customer pays the provider on the due date. After initial setup, each invoice cycle takes 1-2 hours.
01
Apply and Get Approved
Register with an invoice financing provider. You need: your Y-tunnus, basic company information, bank details, and a sample of recent invoices. The provider reviews your company's credit profile and your customers' creditworthiness. Approval decisions come within 1 to 3 business days. Some providers offer same-day approval. You receive a financing limit based on your assessed risk profile.
02
Submit Your Invoices
Upload invoices through the provider's online platform or API integration. Most platforms accept PDF invoices or integrate directly with popular accounting software (Procountor, Netvisor, Visma). Each invoice must show: the customer's name and business ID, invoice amount, payment term, and due date. The provider verifies each invoice against your customer's credit profile.
03
Receive Your Advance
Once the invoice is verified (usually within hours), the provider transfers 100% of the invoice value minus the fee to your bank account. For a 20,000 EUR invoice at 100% advance with a 2.5% fee, you receive 19,500 EUR (20,000 minus 500 fee). Most providers process transfers within 1-2 hours. Some offer even faster transfers for submissions before noon.
04
Customer Payment and Settlement
Your customer pays the invoice on the due date. Payment goes to the provider. Since you already received 100% of the invoice value minus the fee upfront, there is no remaining balance to settle. For the example above (20,000 EUR invoice, 100% advance, 2.5% fee): you already received 19,500 EUR. The customer's 20,000 EUR payment goes to the provider. Total received: 19,500 EUR. Total cost: 500 EUR.
Typical Timeline
Day 0: Submit your application. Days 1 to 3: Approval and account setup. Day 3 or 4: Submit your first invoice. Within 1-2 hours: Advance hits your bank account. Day 34 to 64 (depending on payment terms): Customer pays the provider. After initial setup, each new invoice follows a 1-2 hour advance cycle. Regular users with pre-approved customers often see advances even faster.
What You Need to Get Started
Invoice financing has lighter requirements than business loans because the credit assessment focuses on your customers, not just your company.
- ✓Valid Y-tunnus and registered company
- ✓B2B invoices with payment terms of 14–120 days
- ✓Customers with acceptable credit profiles
- ✓Minimum invoice amount of €500
- ✓Bank account for receiving advances
- ✓Sample invoices from the past 3 months
Tips for Faster Setup
Speed up your approval and get to your first advance faster with these practical steps.
- ✓Have recent invoices ready to share during the application process
- ✓Use electronic invoicing — providers verify digital invoices faster than PDFs
- ✓Apply with your largest, most creditworthy customers invoices first
- ✓Connect your accounting software for automatic invoice submission after approval
- ✓Submit applications before noon for same-day processing at most providers
Frequently Asked Questions
- How long does the initial setup take?
- Most providers complete setup in 1 to 3 business days. This includes company verification, credit assessment, and customer pre-approval. Some digital providers offer same-day setup for companies with clean credit.
- Can I submit invoices automatically?
- Yes. Many providers integrate with popular accounting software (Procountor, Netvisor, Visma) for automatic invoice submission. API integrations are also available for custom setups.
- What if my customer pays early?
- Early payment is a bonus. The provider releases the remaining balance sooner. Some providers reduce fees proportionally for early payment. Others charge the full fee regardless of when the customer pays.
- Do I need to finance all my invoices?
- Most providers offer selective financing, meaning you choose which invoices to submit. Some require you to finance all invoices to a particular customer or above a certain threshold. Confirm the terms before signing.
- Can I cancel after signing up?
- Most contracts have a 1 to 3 month notice period. Some providers offer month-to-month arrangements with no minimum commitment. Check the termination clause in your agreement.
- What information does my customer see?
- In confidential arrangements, the customer sees nothing different and pays your standard bank account. In disclosed arrangements, the customer receives a payment redirection notice and pays the provider's account instead.
