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• 26 Jan

  Who CHOCs Invoice Finance Is Best For

  Choosing the right invoice finance structure is just as important as choosing the right provider. One option that works particularly well for certain UK businesses is CHOCs invoice finance.

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  Who CHOCs Invoice Finance Is Best For

  

  This guide explains who CHOCs invoice finance is best for, how it works in practice, and when it may be the right fit for your business.

  What Is CHOCs Invoice Finance

  CHOCs stands for Customer Handles Own Collections. Under this structure, your business keeps full control of credit control and customer communications, while still accessing funding against unpaid invoices.

  Rather than the funder chasing your customers for payment, you remain responsible for collections, which can be important for businesses that value direct customer relationships.

  You can find a full explanation of how this works on our main CHOCs product page.

  Businesses That Benefit Most From CHOCs

  CHOCs invoice finance is not suitable for every business, but it can be a strong fit in the right circumstances.

  UK Businesses That Want To Retain Customer Control

  If maintaining direct relationships with customers is important, CHOCs allows you to manage payment conversations without involving third parties. This is often preferred by businesses with established accounts teams or long-standing customer relationships.

  Smaller UK Businesses And Sub £500k Turnover Companies

  CHOCs can work particularly well for smaller UK businesses, including those with a turnover below £500,000 that might struggle to qualify for full invoice discounting. Many independent invoice finance providers actively support this segment and offer a more personal service model than larger banks.

  For these businesses, CHOCs can provide flexible cash flow support without feeling over-managed.

  Businesses With Strong Credit Control Processes

  CHOCs is best suited to businesses that already have effective credit control in place. If invoices are issued promptly, disputes are minimal, and customers generally pay on time, CHOCs can operate smoothly.

  If credit control is weak or inconsistent, a confidential factoring or full-service factoring facility may be more appropriate. With those products, the funder provides the credit control as part of the package.

  Importers, Distributors, And Wholesale Businesses

  Sectors such as wholesale, distribution, and importing often prefer CHOCs invoice finance. These businesses typically invoice other businesses, manage repeat customers, and want to keep collections in-house.

  CHOCs allows them to unlock working capital while continuing to manage customer payment chasing as normal.

  Read this case study about how we found CHOCs for a UK drinks importer.

  When CHOCs May Not Be The Right Fit

  CHOCs may not be suitable if:

  1. You do not have the time or resources to manage credit control
  2. Customers have a history of late payment or disputes
  3. You want a fully outsourced collections process

  In these cases, other forms of invoice finance may be more appropriate. Our main invoice finance page explains the alternatives in more detail

  Why Provider Choice Matters With CHOCs

  With CHOCs, service quality is critical. Smaller UK businesses can sometimes feel overlooked by larger bank-backed providers, particularly if turnover falls below typical thresholds.

  Independent invoice finance companies often offer:

  • Direct access to decision makers
  • Faster responses
  • Facilities designed for smaller businesses

  UK Finance is the industry trade body, with many members that offer these services. They recognise invoice finance as an established form of business funding for UK businesses, helping to unlock working capital tied up in unpaid invoices.

  How FundInvoice Can Support Your CHOCs Search

  FundInvoice supports UK businesses in assessing whether CHOCs invoice finance is the right fit and identifying providers that suit their size, sector, and way of working.

  If you are considering CHOCs or reviewing an existing facility, you can request a free quote search and explore alternative options without obligation

  Final Thoughts

  CHOCs invoice finance is best suited to UK businesses that want to retain control of customer collections, have solid credit control, and value service quality. For the right business, it can provide flexible cash flow support without disrupting customer relationships.

  FundInvoice continues to support UK businesses by helping them secure invoice finance solutions that genuinely fit their operating models. You can request CHOCs quotes using this quote request form.

  FAQ About Who CHOCs Suits

  1) What Does CHOCs Stand For?

  CHOCs stands for "Customer Handles Own Collections", and it means your business remains responsible for collecting payment from customers whilst still receiving prepayments against invoices.

  2) Is CHOCs Invoice Finance Suitable For Small UK Businesses?

  Yes. Many independent providers support smaller UK businesses.

  3) Do Customers Know About A CHOCs Facility?

  In most cases, customers are aware of the arrangement, but communication remains managed by your business.

  4) Can I Switch To CHOCs From Another Invoice Finance Facility?

  Yes. Many businesses move to CHOCs when they want more control or better service from a provider that suits their size.

  By Glenn Blackman