UK companies expanding into the US often encounter cash flow hurdles tied to cross-border payment timelines and operational costs. Invoice factoring for UK-owned US subsidiaries has become a reliable option to ease these financial pressures and maintain business momentum. This method helps unlock capital from outstanding invoices, giving subsidiaries the ability to cover expenses and grow without waiting weeks or months for customer payments.

What Is Invoice Factoring?

Factoring—sometimes called accounts receivable financing USA—involves selling a company’s unpaid invoices to a financing provider in exchange for immediate funds. It’s not a loan, so it doesn’t add debt to your balance sheet. Instead, it allows your US entity to use the money already earned but not yet collected. The factoring provider pays a portion of the invoice upfront (usually 80–90%) and releases the remainder, minus fees, once the customer pays in full.

This approach is especially beneficial for UK businesses that have recently established US subsidiaries. These entities may not yet have deep credit histories or local banking relationships, making traditional financing harder to obtain. Because factoring decisions are based largely on the creditworthiness of your customers rather than your own, it’s accessible even for newer subsidiaries.

How Factoring Improves Cash Flow for UK Businesses in the US

One of the most significant advantages of invoice factoring is the speed at which funds can be accessed. In many cases, your US-based subsidiary can receive funds in as little as 24 to 48 hours. That kind of turnaround can be critical when managing payroll, purchasing materials, or addressing unexpected costs.

Factoring simplifies funding compared to traditional loans. It requires less paperwork, fewer approvals, and no equity sacrifices. Instead of dealing with lengthy underwriting processes, your team can focus on fulfilling orders, building customer relationships, and expanding operations.

For UK firms pursuing cash flow solutions to stay competitive in the US market, invoice factoring provides flexibility to use the funding where it matters most. Whether covering logistics, staffing, or scaling production, this strategy enables subsidiaries to stay nimble.

Additional Funding Options for UK-Owned US Subsidiaries

• Working Capital Loans: Short-term working capital for UK-owned US companies can bridge seasonal gaps or fuel aggressive growth efforts. These loans are often available within 24 to 72 hours and help with everyday expenses like hiring, marketing, or rent.
• Equipment Financing: Equipment financing allows businesses to acquire or upgrade machinery without a heavy upfront cost. Repayment terms typically match the equipment’s useful life and value to operations.
• Purchase Order Financing: If your subsidiary receives a large order but lacks the capital to fulfill it, purchase order financing for exporters covers supplier costs and allows the order to be completed and invoiced.

Why Capital Source?

Capital Source offers funding designed specifically for UK businesses entering or operating in the US. We understand the operational and financial disconnects that can occur between parent companies and subsidiaries and provide services that reflect both UK commercial expectations and US market dynamics.

With over a decade of experience working with UK business cash flow solutions, we bring hands-on knowledge of transatlantic business operations. Our team supports a wide range of industries, from manufacturing and logistics to services and wholesale distribution.

Benefits of Partnering with Capital Source

• Fast Turnaround: Funding decisions are made within days, and cash can be available in 24–48 hours.
• Cross-Border Expertise: We specialize in aligning UK and US financial strategies, easing compliance and currency concerns.
• Structured Flexibility: Financing terms are adapted to your sector, sales cycles, and transaction volumes.
• Low Credit Barrier: Even if your US subsidiary lacks a credit history, our focus on your customer’s credit allows us to provide financing quickly.

Ready to Improve Your Subsidiary’s Cash Flow?

Capital Source helps UK-owned businesses in the US turn receivables into results. If you’re exploring options beyond traditional lending, invoice factoring and our broader suite of financing tools may be the right fit.

Contact our team today to explore the most effective way to fund your US operations—with speed, reliability, and strategic alignment.

Why apply for funding through Capital Source?

• Speed: Term sheets with 24-48 hours
• Simplicity: Streamlined application process
• Flexibility: Credit facilities tailored to cross-pond growth

Ready to fund your US subsidiary? Connect with one of our international financing experts today and explore how Capital Source can unlock fast, flexible funding for your UK business operating in the United States.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice. Consult qualified professionals for advice on regulatory compliance or business incorporation.