Invoice Finance for UK Businesses — Release Cash from Outstanding Invoices

Summary: Invoice finance helps established UK companies unlock working capital tied up in unpaid invoices. Fast Business Loans connects businesses seeking £10,000 and above with specialist brokers and lenders to arrange factoring, invoice discounting or bespoke debtor finance. Our quick, free enquiry helps you compare options without obligation. Get Quote Now

Overview

If late-paying customers are squeezing your cash flow, invoice finance can turn unpaid invoices into immediate working capital. Rather than waiting 30–120 days for payment, you can access a substantial portion of the invoice value (typically 70–90%) and use that cash to pay suppliers, hire staff or invest in growth. Fast Business Loans helps match your business with lenders or brokers who specialise in invoice funding — for facilities from around £10,000 upwards. Use our free, no-obligation enquiry to see options quickly: Free Eligibility Check.

Key Takeaways

• Quick access to cash: Release a large share of unpaid invoices within days — Get Quote Now.
• Flexible solutions: Factoring, discounting, and selective facilities suit different sectors and growth plans.
• For established businesses: Facilities typically start at £10,000 and are priced according to debtor quality and sector risk.
• No obligation: Our service is free and simply introduces you to lenders/brokers who can provide tailored quotes.

What is Invoice Finance?

Invoice finance is an umbrella term for products that let companies access money tied up in outstanding invoices. Two main options are invoice factoring and invoice discounting. With factoring, a lender or factor usually handles credit control and collections; with discounting, your business retains control of customer collections and the facility operates confidentially if required. Both release a percentage of invoice value up front and pay the balance (less fees) once customers settle.

Fast Business Loans does not provide finance itself. We match you with lenders and brokers who specialise in invoice funding so you can compare real quotes quickly and choose the solution that fits your business needs.

How Invoice Finance Works (Step-by-Step)

1. Start your enquiry: Complete a short enquiry and tell us about your turnover, typical invoice size and sector. This is not an application — it helps us match you with suitable partners. Start Your Enquiry.
2. Partner matching: We introduce you to brokers or lenders experienced in your industry who can structure a facility (factoring, discounting or selective finance).
3. Proposal & soft checks: Partners typically carry out soft due diligence and present indicative pricing and terms.
4. Formal approval: If you accept terms, partners perform formal checks (which may include hard credit or affordability checks) and complete documentation.
5. Funding: Onboarding is completed and you receive an advance on nominated invoices — often within days.

Ready to see how much you could release from invoices? Get Quote Now.

Types of Invoice Finance Solutions

Invoice Factoring

With factoring, a funder buys or advances against your invoices and usually takes responsibility for collections. This can improve cash flow and reduce time spent chasing payments.

• Best for: Businesses that want fast cash and outsourced debtor management.
• Typical advance: 70–90% of invoice value up front.

Invoice Discounting

Invoice discounting provides similar advances but lets you retain credit control. It can be confidential, so customers need not know you use a funder.

• Best for: Firms that prefer to keep customer relationships private.
• Typical advance: 70–90% depending on debtor quality.

Selective Invoice Finance

Selective facilities let you nominate which invoices to fund rather than committing all sales. Useful for seasonal peaks or when only some debtors are suitable for funding.

Construction & Project-Specific Facilities

Project or construction debtor finance adapts invoice funding to progress claims, retentions and contract payment cycles. These setups often require sector expertise from brokers and lenders.

Eligibility & Documents Checklist

Invoice finance is typically available to limited companies with trading history, clear debtor ledgers and invoices to creditworthy customers. Typical requirements include:

• Minimum facility size: from around £10,000.
• Trading history: usually 6–12 months (varies by partner).
• Key documents: recent management accounts, aged debtor ledger, VAT returns, company registration documents, and details of major customers.
• Sector considerations: sectors with long payment cycles (construction, logistics) can be supported but may need specialist arrangements.

Fast Business Loans helps you identify which partners accept your sector profile. Submitting an enquiry performs no hard credit checks. Free Eligibility Check.

Rates, Fees & Typical Terms

Costs vary by facility type, invoice volume, debtor risk and individual lender pricing. Typical components include:

• Service fee / facility fee: Often 0.5%–3% of invoice value per month or a flat monthly administration fee.
• Discount/interest rate: Charged on the advanced amount until the invoice is paid — commonly linked to base rates and risk margins.
• Additional charges: Onboarding, credit control, and exit fees can apply.

Exact pricing depends on your business and customers. We recommend reviewing all fees in proposals and comparing multiple quotes. To get tailored indicative pricing, Get Quote Now.

Benefits & When to Use Invoice Finance

Improve Cash Flow Immediately

Turn 30–120 day receivables into working capital; use the money for payroll, stock or supplier payments.

Support Growth

Invoice finance scales with sales — as your invoicing grows, so can your facility, supporting expansion without equity dilution.

Bridge Seasonal Gaps

Useful for seasonal businesses needing short-term liquidity at peak buying or production times.

Manage Late Payers

Reduce the impact of late-paying customers and stabilise cash flow forecasting.

Real-world example: A manufacturer used invoice factoring to convert a £150k debtor ledger into immediate cash, allowing them to buy materials to fulfil a large order and accept new contracts.

Potential Risks & How to Mitigate Them

Invoice finance is powerful but not without trade-offs:

• Cost: Fees can be higher than unsecured loans for some businesses — compare quotes carefully.
• Customer relations: With non-confidential factoring, customers interact with the funder; choose confidential discounting if this is a concern.
• Contract terms: Notice periods and exit fees can apply — review contracts before signing.

Mitigation: Ask lenders for transparent fee schedules, consider selective or confidential options, and use our service to compare several partners before committing.

Why Use Fast Business Loans for Invoice Finance?

Fast Business Loans simplifies the search for the right invoice finance partner. We:

• Match your business to lenders and brokers experienced in your sector.
• Save you time by pre‑qualifying partners based on your invoice profile and funding needs.
• Provide a free, no-obligation enquiry so you can compare real quotes quickly.

We organise facilities of £10,000 and over and work with a wide panel of UK finance partners so you can choose the best-fit solution. To begin, complete a short form and we’ll introduce the best matches: Get Started — Free Eligibility Check.

For further reading on the mechanics and benefits of invoice funding, see our in-depth guide to invoice finance.

Industries We Commonly Support

We frequently match businesses in sectors such as:

• Construction & contractors
• Manufacturing & engineering
• Logistics & distribution
• Retail & wholesale
• Healthcare providers and clinics
• Hospitality, food producers and catering

If your sector isn’t listed, our partners often arrange bespoke solutions — start with a quick enquiry: Free Eligibility Check.

Frequently Asked Questions

How quickly can invoice finance release funds?

Often within 24–72 hours of onboarding, once due diligence is complete. Exact timing depends on the partner and the complexity of your debtor ledger.

Will customers know I’m using invoice finance?

It depends. Factoring is usually visible because the funder may collect payments, whereas invoice discounting can be confidential and keep the arrangement hidden from customers.

Does invoice finance affect my credit rating?

Submitting an enquiry via Fast Business Loans does not affect your credit score. Lenders may perform credit checks during formal underwriting.

Can I switch from an existing invoice finance provider?

Yes. Many lenders handle transfers, but you should check notice periods, outstanding balances and exit fees before switching.

Are there minimum invoice sizes or turnover requirements?

Requirements vary; many partners prefer established businesses with regular invoice flows. Typical facilities start from about £10,000.

How do I start my enquiry?

Complete our short enquiry form and we’ll match you with the most relevant brokers and lenders. It’s free and carries no obligation: Get Quote Now.

Next Steps & Compliance Reminder

Ready to explore invoice finance options? Complete our quick enquiry — it only takes a couple of minutes and does not commit you to anything. We’ll match your business with lenders or brokers who can provide tailored quotes and next steps. Start Your Enquiry.

Important: Fast Business Loans is an introducer that connects businesses with finance providers. We do not provide loans or regulated financial advice. All finance proposals are subject to the lender’s terms, eligibility and checks. Please review any quote carefully and seek independent advice if you’re unsure about suitability.

Footer microcopy: Fast Business Loans acts as an introducer and does not lend money or provide regulated financial advice. We connect businesses seeking funding of £10,000 and above with lenders and brokers who may contact you after you submit an enquiry. Quotes and terms vary by provider and are subject to checks and eligibility. Your details will be shared only with partners able to help with your request and handled in accordance with our privacy policy.

1) What is invoice finance and how does it work? Invoice finance lets UK SMEs unlock 70–90% of unpaid invoice value upfront, with the remaining balance paid (minus fees) when the customer settles.

2) What’s the difference between invoice factoring and invoice discounting? Factoring typically includes the funder handling collections and is disclosed to customers, while discounting keeps you in control and can run confidentially.

3) How quickly can I get funds through invoice finance? After onboarding and due diligence, advances are often released within 24–72 hours.

4) Am I eligible for invoice finance and what’s the minimum facility size? Lenders usually look for established limited companies with a trading history and regular invoicing, with facilities starting from around £10,000.

5) Will my customers know I’m using invoice finance? With factoring they usually will because the funder collects payments, but invoice discounting can be set up confidentially.

6) What documents will I need to provide? Expect to share recent management accounts, an aged debtor ledger, VAT returns, company details, and information on major customers.

7) Will submitting an enquiry affect my credit score? No—the Fast Business Loans enquiry is not an application and won’t affect your score, though credit checks may occur if you proceed with a lender.

8) How much does invoice finance cost? Pricing varies by sector and debtor quality, typically combining a service/facility fee (often 0.5%–3% per month) with a discount rate charged on the advanced amount until paid.

9) Is Fast Business Loans a lender or financial adviser? No—we’re an introducer that connects you with trusted UK brokers and lenders so you can compare tailored invoice finance options without obligation.

10) How do I start my invoice finance enquiry? Complete our quick online form to be matched with suitable brokers or lenders who’ll provide quotes and next steps, free and without obligation.