Invoice Finance for UK Businesses | Fast Business Loans

Summary: Invoice finance converts unpaid invoices into fast working capital so businesses can pay suppliers, staff and invest in growth without waiting for customer payments. Fast Business Loans doesn’t lend money — we match UK limited companies and growth-focused SMEs (facilities from around £10,000 upwards) with invoice finance brokers and lenders best suited to their sector. Complete a quick, free eligibility check to get matched and receive tailored quotes.

What is invoice finance and how it works

Invoice finance is a short-term business funding solution that turns unpaid invoices into immediate working capital. Instead of waiting 30–120 days for customers to pay, you can draw down a percentage of each eligible invoice from a lender or factoring house.

High-level process:

• Issue invoice to your customer on normal credit terms.
• Submit the invoice to an invoice finance provider or broker.
• The provider advances a portion of the invoice value (typically 70–90%).
• When the customer pays, the provider returns the remaining balance minus fees.

Invoice finance can be structured in different ways depending on whether you want your customers to know about the funding arrangement and whether you prefer the provider to handle credit control. Costs and features vary, so it’s important to compare options. To explore suitable matches, Start your free eligibility check — it takes under two minutes.

Types of invoice finance solutions

Invoice Factoring

• Provider advances funds and usually takes responsibility for collections and credit control.
• Ideal for SMEs that want to outsource debtor management and reduce admin burden.
• Pros: immediate cash flow, reduced bad-debt exposure (if credit protection chosen). Cons: customer-facing, with potential impact on relationships if not managed carefully.

Confidential Invoice Discounting

• Provider advances funds but you (the business) retain control of collections; your customers are normally unaware.
• Best for larger, professionally-run firms with robust credit-control processes.
• Pros: discreet, preserves customer relationships. Cons: typically requires stronger reporting and covenant structures.

Selective / Spot Factoring

• Fund individual invoices as required rather than the whole ledger.
• Useful for one-off needs or to test invoice finance without a long-term commitment.

Industry-specific facilities

• Construction stage-payment finance, export invoice finance and sector-specific variations exist to match different cashflow patterns.

Quick comparison (summary): Solution — Advance % — Collections — Speed — Best for

• Factoring — 70–90% — Provider manages — Fast — SMEs needing credit control
• Discounting — 70–90% — You manage — Fast — Larger firms wanting confidentiality
• Selective factoring — 70–90% — Choice — Very fast — One-off or variable needs

To compare providers quickly, Get a free eligibility check and our team will match you to the right brokers and lenders.

Who can benefit

Invoice finance suits UK B2B businesses that invoice other businesses or public sector bodies and operate on credit terms. Typical industries and scenarios include:

• Construction and contractors with stage payments
• Manufacturing and wholesalers with long lead times
• Logistics and haulage waiting on progress invoices
• Recruitment and professional services supplying clients on credit
• Fast-growing companies with tight working capital despite strong sales
• Seasonal businesses facing temporary cash gaps

If you’re experiencing long payment terms, winning a large contract, or expanding operations and need predictable cash flow — invoice finance could help. If you’re unsure whether it’s the right route, Start your free eligibility check and we’ll match you to partners experienced in your sector.

Key advantages of invoice finance

• Frees up cash tied to unpaid invoices so you can pay suppliers and staff without new borrowing.
• Speeds up cash flow — funds often available within 24–48 hours after invoice submission.
• Non-dilutive — does not give up equity or control of the business.
• Supports growth — enables you to take on larger orders and invest in operations.
• Optional credit protection can reduce exposure to customer defaults (subject to product type).

Invoice finance is not free and contracts vary. Consider fees, notice periods and how collection processes will be handled before signing. For tailored options, Get Quote Now.

Considerations, costs & risks to review

Common charges and points to check:

• Discount rate or service fee (typically a % of invoice value or turnover).
• Facility/arrangement fees, set-up and audit fees.
• Reserve or withheld balance until customer payment.
• Termination fees and minimum term commitments.
• Concentration limits — many providers limit exposure to single large debtors.
• Recourse vs non-recourse – in recourse facilities you retain liability for unpaid invoices; non-recourse shifts some credit risk to the provider (normally more costly).

Risks include potential disruption to customer relationships if collections are handled externally and the effect of fees on margins. Always read facility agreements carefully and consider independent professional guidance where needed. If you’d like a broker to explain typical fee structures, Request a free broker callback.

How Fast Business Loans helps you secure the right partner

We are an introducer that matches your business with vetted brokers and lenders experienced in invoice funding. Our process is built to be quick, transparent and obligation‑free:

1. Complete a short enquiry form (takes under 2 minutes).
2. We match your details to lenders and brokers who specialise in your industry and funding need.
3. Selected partners contact you directly with tailored facility options and quotes.
4. Compare offers, choose a partner and proceed directly with them — it’s your choice.

“We were chasing cash for a large contract; Fast Business Loans connected us to a broker who arranged a factoring facility within days — we accessed £250k in working capital.” — anonymised client example

To get matched now, Start Your Free Eligibility Check.

What information to gather before you enquire

Prepare these details to speed up matching and quoting:

• Company name, registration number and principal trading address.
• Annual turnover and recent management accounts.
• Aged debtor list showing invoice dates, values and payment terms.
• Typical contract terms or purchase orders for recurring work.
• Number of customers and any concentration (e.g., if top 3 customers represent >50% of income).

All data is handled securely. When ready, Upload your details through our secure form.

Eligibility snapshot & typical lending criteria

While each provider differs, common expectations include:

• UK-based limited companies or incorporated entities (we do not handle sole trader enquiries).
• Minimum facility sizes are typically from around £10,000 upwards.
• Consistent invoicing and trading history — many providers prefer at least 6–12 months trading.
• Quality and collectability of debtor book; public sector and large corporate debts are often favoured.
• Low levels of debtor disputes or high concentrations with single customers may require additional covenants.

If you’re near the threshold or have had previous refusals, our panel often finds alternative routes — See if your business qualifies.

Real-world example: Invoice finance in action

Example scenario: A manufacturing SME with £2m turnover wins a £600k contract invoiced on 60-day terms. The firm needs to buy materials and pay staff immediately. A selective factoring facility was arranged, providing 85% advance on submitted invoices and an overdraft bridge on retained balances. Funds were released within 48 hours of invoice submission, enabling uninterrupted production and timely supplier payments.

If you have a similar cashflow gap, Explore your tailored solution today.

Alternatives & complementary funding options

Invoice finance is one of several working capital tools. Depending on your needs, consider:

• Business loans — fixed-purpose financing for longer-term investments.
• Asset finance — fund machinery, vehicles or equipment.
• Overdrafts — flexible short-term funding but subject to limits and review.
• Supply chain finance — buyer-led programmes to extend or accelerate payments.
• Blended finance — combining facilities to smooth costs and coverage.

Our partners can advise on blended options tailored to your cashflow — Speak to our panel.

Frequently asked questions

Is Fast Business Loans a lender or broker?

We are an introducer. We connect you with brokers and lenders who provide invoice finance directly. You receive quotes and progress applications with the chosen provider.

How quickly can invoice finance be set up?

Initial matches and indicative quotes often arrive within hours. Once you choose a provider, full set-up depends on paperwork and due diligence — many facilities go live within a few days where documentation is straightforward.

Will using invoice finance affect my customer relationships?

It depends on the product. Factoring is customer-facing, while confidential discounting keeps funding discreet. A broker can recommend the structure best for your customer relationships.

Can businesses with imperfect credit histories apply?

Yes — some providers and specialist brokers consider businesses with complex credit histories, especially where the debtor book is strong. Our panel includes lenders experienced in such cases.

What happens if a customer doesn’t pay?

Procedures depend on whether the facility is recourse or non-recourse and whether credit protection is in place. Providers typically have collections processes and will advise on next steps.

Does submitting an enquiry affect my credit score?

No. Completing our enquiry does not impact your credit file. Lenders or brokers may run credit checks only if you proceed with an application.

How much of each invoice can I access?

Advance rates commonly range between 70% and 90% of invoice value, depending on debtor quality, industry and facility terms.

Ready to unlock cash flow?

If unpaid invoices are limiting your business, getting matched with the right invoice finance partner is fast and free. We help you avoid the admin of contacting multiple lenders — tell us your needs and we’ll do the searching.

Get Started — Free Eligibility Check (takes under 2 minutes). Funds can often be accessed within days once a provider approves the facility.

Want to read more about how invoice funding works in practice? Learn more about invoice finance on our dedicated resource page: invoice finance.

Transparency & compliance

Fast Business Loans is an introducer that connects UK businesses with finance brokers and lenders. We do not provide financial advice or lend funds directly. Our service is free and without obligation — you decide whether to proceed with any provider. We encourage businesses to review facility terms carefully and seek independent advice if required. Your data is shared only with selected partners who can help with your funding request and is handled securely.

If you’re ready to compare options and receive quotes from specialists, Start your free eligibility check now.

– What is invoice finance and how does it work?
Invoice finance turns unpaid B2B invoices into immediate working capital by advancing 70–90% now and paying the balance (minus fees) when your customer settles.

– How quickly can I get funds with invoice finance?
Once your facility is approved, many UK providers release funds within 24–48 hours of invoice submission.

– Who qualifies for invoice finance in the UK?
It typically suits UK limited companies selling to other businesses on credit terms, with trading history and a reliable debtor book, and facilities starting from around £10,000.

– How much of each invoice can I access?
Most lenders advance 70–90% of the invoice value depending on debtor quality, sector, and facility terms.

– Will using invoice finance affect my customer relationships?
Factoring is disclosed and provider-led on collections, while confidential invoice discounting keeps funding hidden and leaves credit control with you.

– What’s the difference between invoice factoring, invoice discounting, and selective/spot factoring?
Factoring outsources collections, discounting keeps them in-house and confidential, and selective/spot lets you fund chosen invoices without committing the whole ledger.

– What does invoice finance cost?
Fees usually include a discount/service rate plus set-up and audit charges (and possible termination fees), which vary by provider, volume, and risk.

– Is Fast Business Loans a lender and what does your service cost?
Fast Business Loans is an introducer that matches you with brokers and lenders, and our enquiry and matching service is free and without obligation.

– Will submitting the enquiry affect my credit score or count as an application?
No—our quick form is an enquiry only and won’t affect your credit score; credit checks occur only if you choose to proceed with a provider.

– Can I get invoice finance if I’ve been refused before or have imperfect credit?
Yes—many specialist UK providers focus on the strength of your debtor book and may help even after previous declines.