Invoice Finance for UK Businesses: Fast Cash Flow Solutions

Summary: If unpaid invoices are holding your business back, invoice finance can unlock cash quickly. Fast Business Loans connects UK limited companies to brokers and lenders who specialise in invoice factoring, invoice discounting and selective invoice funding. Complete a Free Eligibility Check and receive tailored matches — no obligation and your enquiry won’t affect your credit score. We help arrange funding from £10,000 upwards.

Fast Business Loans is an introducer — we do not lend or give regulated financial advice. We simply match businesses to the right lenders and brokers so you can compare options quickly.

Table of contents

• What is invoice finance and how does it work?
• Types of invoice finance
• When invoice finance makes sense
• Benefits of using the Fast Business Loans network
• How our enquiry process works
• Costs, fees and key terms
• Eligibility snapshot & documents
• Invoice finance vs other funding options
• Real-world example
• Frequently asked questions
• Get started

What is invoice finance and how does it work?

Invoice finance in plain English

Invoice finance is a way to release cash tied up in unpaid customer invoices. Instead of waiting 30, 60 or 90 days for customers to pay, a provider advances most of the invoice value (typically 70–95%). You receive immediate working capital and pay the provider a fee for the service.

Here’s why it matters: quick access to cash helps you pay suppliers, meet payroll, bid for larger contracts and grow without taking on traditional debt. If your business regularly invoices other companies (B2B), invoice finance is often a fast route to improved liquidity.

Types of invoice finance we can help you explore

• Invoice factoring – the funder advances cash and often manages debtor collections.
• Invoice discounting – funding against invoices while you retain control of collections (confidential to customers).
• Selective / spot factoring – finance single invoices or chosen customers rather than the whole ledger.
• Whole ledger facilities – fund a large portion of your entire ledger on an ongoing basis.
• Export invoice finance – tailored for businesses selling overseas with extended payment terms.

Note: terms and eligibility vary between providers. Fast Business Loans will match you with brokers and lenders who can explain the best structure for your business.

Free Eligibility Check — get matched with invoice finance specialists.

When invoice finance makes sense

Common use cases for UK businesses

• Seasonal cash flow spikes (e.g., retail build-up before busy periods).
• Bridging long payment terms from large clients.
• Taking on larger contracts where supplier deposits or materials need paying.
• Stabilising cash flow during growth or while waiting on loan approvals.

Indicators invoice finance might be right for you

• High debtor days (customers take 60+ days to pay).
• Large invoices and a steady flow of B2B sales.
• Growth plans hampered by a lack of working capital.

Ready to see if you qualify? Get Quote Now — it takes under 2 minutes.

Benefits of using the Fast Business Loans network

Tailored matches to experienced brokers and lenders

We use the details you provide to select lenders and brokers who specialise in your sector and funding size. That increases the likelihood of receiving relevant and realistic offers quickly.

Save time and compare without pressure

Our service is free and non-obligatory. Submit one short enquiry and receive contact from multiple specialists — compare terms, ask questions, and decide whether to proceed.

Sector expertise

Our partners commonly serve industries such as construction, manufacturing, logistics, hospitality, healthcare and professional services. They understand sector-specific payment cycles and lending criteria.

Step-by-step: how our invoice finance enquiry process works

1. Submit a short enquiry: Tell us about your business, average invoice values, and funding needs (Free Eligibility Check).
2. We match you: We introduce you to selected brokers or lenders best suited to your profile.
3. Discuss options: A provider will contact you to discuss terms and request documents if needed.
4. Compare and decide: You receive quotes and choose whether to proceed directly with the lender or broker.

Typical response times: many matched providers contact businesses within hours during business days — funds can follow within 24–48 hours of approval, depending on the provider.

Understanding costs, fees and key terms

Common fee structures

• Discount rate – charge expressed as a percentage of invoice value (weekly or monthly basis).
• Service or administration fees – fixed or variable charges for managing the facility.
• Minimum fees – some providers apply a minimum monthly fee.
• Reserve/retention – a portion of invoice value held back until customer payment, released later.

Questions to ask potential lenders or brokers

• What is the discount rate and how is it calculated?
• Are there setup, admin or termination fees?
• Will you manage collections (factoring) or keep collections confidential (discounting)?
• Are any customers excluded, and are there concentration limits?
• What documents do you require and what are the reporting obligations?

Exact costs depend on the provider and your business profile. Always review lender documentation carefully before committing.

Eligibility snapshot: what lenders typically look for

Typical criteria

• UK limited company trading on credit terms with business customers (B2B).
• Minimum turnover and trading history — many lenders prefer established businesses, though some panels consider younger companies with strong invoices.
• Quality of debtors — the creditworthiness of your customers is key.

Documents you may need

• Recent management accounts and bank statements.
• Aged debtor report or sales ledger.
• Customer contracts or purchase orders (for large invoices).

We work with a range of providers; complete our Free Eligibility Check to see who best matches your situation.

Invoice finance vs other working capital options

• Business loans: Fixed advances repaid over time—good for fixed investments, less flexible for day-to-day cashflow.
• Overdrafts: Revolving but often limited and can be costly for sustained funding needs.
• Asset finance: Secured against equipment—suitable for capex rather than debtor-based cashflow.
• Invoice finance: Scales with sales, directly converts unpaid invoices into working capital.

If you’re unsure which is best, our matching service will introduce you to brokers who can explain the pros and cons for your business (we do not provide advice ourselves).

Real-world scenario (anonymised)

A UK engineering firm with £2m annual turnover was winning larger contracts but struggled with 60–90 day payment terms. By using a selective invoice finance facility, the company accessed up to 85% of invoice values within 24 hours, smoothing payroll and supplier payments. The result: cashflow stability, the ability to accept larger contracts and no long-term loans taken.

Frequently asked questions about invoice finance

What businesses qualify for invoice finance?

Typically limited companies that invoice other businesses. Eligibility depends on turnover, debtor quality and trading history. Submit a free enquiry for a tailored view.

What’s the difference between factoring and discounting?

Factoring often includes debtor management; discounting keeps collections with you (confidential). Your matched provider will explain options.

Will invoice finance affect customer relationships?

Factoring may involve provider contact with customers; discounting keeps customer interactions with you. Choose the structure that suits your relationship preferences.

How fast can funds be released?

Many providers can advance funds within 24–48 hours of an approved invoice. Exact timing depends on the provider and paperwork.

Can I finance individual invoices?

Yes — selective or spot factoring is available from many lenders. It’s ideal if you only want to fund specific invoices.

Does submitting an enquiry affect my credit score?

No — submitting an enquiry via Fast Business Loans will not affect your credit file. Lenders may do checks only if you proceed.

Get started with your free invoice finance enquiry

Ready to unlock cash from your unpaid invoices? Fast Business Loans will match you to the most relevant lenders and brokers — quickly and at no cost. Our service is non-obligatory and designed to save you time while increasing the chance of a suitable match.

Get Started — Free Eligibility Check

Fast Business Loans is an introducer connecting businesses to lenders and brokers. We do not provide loans or regulated financial advice. We typically help arrange funding from £10,000 and above. Your details are shared only with selected partners who may contact you to discuss your options. Enquiries do not affect your credit score.

For more information about invoice funding options and to explore detailed comparisons, visit our invoice finance pillar page on the site: invoice finance.

Privacy & data handling: Your enquiry information is used only to match you with appropriate finance partners. Fast Business Loans does not charge businesses for this introduction. Review our Privacy Policy for full details.

– What is invoice finance and how does it work?
Invoice finance lets UK businesses unlock 70–95% of unpaid B2B invoice value upfront, with the balance (minus fees) released when your customer pays.

– Is Fast Business Loans a lender?
No—Fast Business Loans is an introducer that matches UK companies with suitable invoice finance lenders and brokers, free and with no obligation.

– Who is eligible for invoice finance?
Typically UK limited companies that sell to other businesses on credit terms, with eligibility based on turnover, trading history and the credit quality of your customers.

– How much can I raise and what advance rate can I expect?
We help arrange facilities from £10,000+ with typical advances of 70–95% of each approved invoice, depending on provider and debtor quality.

– How fast can I get funds?
Many providers release funds within 24–48 hours of receiving an approved invoice, subject to agreement and paperwork.

– Will submitting an enquiry affect my credit score?
No—our enquiry is not a credit application and won’t affect your credit file; lenders may run checks only if you choose to proceed.

– What’s the difference between invoice factoring and invoice discounting?
Factoring often includes the funder managing customer collections, while discounting provides funding against invoices but keeps collections with you, usually on a confidential basis.

– Can I finance single invoices instead of my whole ledger?
Yes—selective (spot) invoice finance lets you fund individual invoices or chosen customers, depending on the lender.

– What are the typical costs of invoice finance?
Costs usually include a discount rate on funds advanced plus service/administration fees, with possible minimums and a retention (reserve) released when customers pay.

– What documents will lenders ask for?
Expect to provide recent management accounts, bank statements, an aged debtor report/sales ledger, and sometimes contracts or purchase orders for larger invoices.