Invoice Finance for UK Businesses – Free Matching Service

Summary: Invoice finance (factoring and discounting) unlocks cash tied up in unpaid invoices so businesses can manage payroll, buy stock or grow. Fast Business Loans does not lend money; we quickly match UK limited companies (from roughly £10k lending value upwards) with lenders and brokers that specialise in invoice finance. Completing our enquiry is a free, non-binding way to see your options – it’s not an application and will not affect your credit score. Get your Free Eligibility Check in under 2 minutes.

Understanding Invoice Finance

Invoice finance is a working capital solution that lets businesses access cash tied up in unpaid customer invoices. Instead of waiting 30–120 days for payment, you receive an advance against invoices and pay fees on the facility. It’s commonly used to smooth cashflow, fund growth, or bridge payment timings — it’s not a conventional term loan.

What invoice finance does for cashflow

• Advances typically cover 80–95% of an invoice’s value (advance rate varies by sector and customer credit).
• Funds can be released within 24–72 hours once the facility and processes are in place.
• Providers charge a discounting or factoring fee plus sometimes a service or administration charge.

Fast Business Loans is an introducer: we match your enquiry to specialist brokers and lenders who will discuss suitable facilities and terms. Your enquiry is for matching only — it is not a loan application.

Types of Invoice Finance Explained

Invoice Factoring

Factoring involves a finance company buying or advancing against invoices and often handling collections and credit control. This option suits businesses that prefer outsourcing debtor management or need higher advance rates. It’s visible to your customers unless a confidential factoring product is used.

Invoice Discounting

Invoice discounting is usually confidential: you retain control of your sales ledger and collections while the provider advances against invoices. It suits businesses confident in their credit control and who prefer to keep finance arrangements discreet.

Selective, Spot and Spot-Purchase Finance

Not every business needs a full facility. Selective or spot invoice finance allows you to fund individual invoices as required — ideal for one-off large invoices or project-based cashflow needs.

Unsure which option fits? Get a no-obligation comparison

Is Invoice Finance Right for Your Business?

Typical eligibility criteria

• Limited companies with business-to-business (B2B) sales and an established debtor book.
• Invoices owed by creditworthy businesses or public sector bodies improve access and pricing.
• Minimum funding needs generally start around £10,000 and upwards.

Industries that commonly use invoice finance

Construction, manufacturing and wholesale, logistics and haulage, recruitment, professional services to other businesses, and many trade businesses often benefit. Case example: a UK wholesaler released £250k in working capital within 48 hours via a partner introduced by Fast Business Loans.

How the Fast Business Loans Matchmaking Service Works

1. Complete our short enquiry (takes under 2 minutes) — remember, it’s not an application.
2. We assess your needs and match you to lenders/brokers on our panel with relevant sector expertise.
3. Selected partners contact you directly to discuss options and, if suitable, start a formal application.
4. You compare offers and choose the provider that best fits your business — you are under no obligation to proceed.

Start your Free Eligibility Check — secure, quick and non-binding.

Costs, Fees & Key Considerations

Invoice finance costs vary by provider, sector and customer risk profile. Typical fee elements include:

• Discount rate / finance charge: The core charge applied to advanced funds, expressed as a percentage.
• Service / administration fees: Monthly or transactional charges for account management and reporting.
• Setup or exit fees: One-off charges for arranging or closing a facility.

Checklist—what to evaluate:

• Advance rate and how quickly funds are released
• Whether the facility is recourse (you remain liable if a customer doesn’t pay) or non-recourse
• Notice periods, concentration limits (limits on exposure to single customers) and reporting requirements

Fast Business Loans does not give regulated advice. Always review contract terms carefully with the provider and, if needed, seek independent professional guidance.

Benefits & Potential Drawbacks

Benefits

• Immediate cashflow improvement without taking on traditional loan debt.
• Scalable funding that grows with your sales ledger.
• Option to outsource credit control with factoring.

Points to watch

• Costs can be higher than some loans, especially for riskier debtor books.
• Factoring may be visible to your customers, which some businesses prefer to avoid.
• Contractual terms can create ongoing obligations — read them carefully.

Documentation & Information You’ll Need

To speed the matching process and any subsequent applications, gather:

• Recent aged debtor ledger and copies of outstanding invoices
• Customer contracts or purchase orders (if applicable)
• Company accounts, management accounts or bank statements
• ID and KYC details for directors

Invoice Finance for Different Sectors

Providers specialise in different industries. Below are common sector notes:

Construction & Trades

Invoice finance can cover stage payments and retention funding; providers often consider contract terms and public sector customers favourably.

Logistics & Haulage

Steady B2B invoices from retailers or distributors usually attract competitive advance rates.

Manufacturing & Wholesale

Large order-led invoicing can create peaks where invoice finance provides immediate working capital to fulfil production and stock needs.

Professional Services

Agencies and consultancies with recurring B2B invoices can benefit, provided client invoices are clear and collectible.

Fast Business Loans vs Going Direct

Using Fast Business Loans saves time and increases the chance of finding a suitable partner quickly. Rather than contacting many lenders yourself, complete one secure enquiry and let us match you to those most likely to help. Our service is free to businesses — lenders/brokers may pay a commission for introductions.

Ready to Get Matched?

Complete a short enquiry — it’s quick, confidential and not an application. Once you submit, our matched lenders and brokers will contact you with options and quotes. Get your Free Eligibility Check now and see who on our panel can help unlock your cashflow.

For more detail on the mechanics of these products and when they’re the best fit for growing companies, read our detailed guide to invoice finance.

Frequently Asked Questions

How quickly could I unlock funds from invoices?

Many providers release advances within 24–72 hours once the facility is set up. Setting up a new facility typically takes several days to a few weeks depending on underwriting and required checks.

Will completing a Fast Business Loans enquiry affect my credit score?

No. Our enquiry is a soft match to identify suitable partners and is not a formal application. Lenders perform formal checks only if you decide to proceed.

What level of control do lenders take over my sales ledger?

That depends on the product: factoring often includes credit control and collections handled by the provider; discounting usually leaves collections with you. Your matched broker or lender will explain the implications.

Can early-stage companies use invoice finance?

Some providers will support younger businesses if there is a strong, verifiable debtor book and evidence that customers will pay on time. Talk to matched brokers who specialise in growth businesses.

Is invoice finance suitable if I trade internationally?

Yes, many lenders finance export invoices, but appetite and terms vary depending on the debtor country and currency risk.

What happens if a customer doesn’t pay?

Outcomes depend on whether the facility is recourse or non-recourse. With recourse you may be liable to repay advances; non-recourse transfers some bad-debt risk to the provider but usually at a higher cost and subject to eligibility of the debtor.

Are your partner lenders and brokers regulated?

Our panel contains a mix of brokers and lenders with varying regulatory statuses. We match you to partners best placed to help — you decide whether to proceed with their formal application process.

Free Eligibility Check — Get Matched Now

Need help deciding? Contact our team after completing the enquiry and we’ll make sure you’re introduced to suitable invoice finance specialists quickly.

– Q: What is invoice finance and how does it work?
A: Invoice finance advances cash against your unpaid B2B invoices so you can improve cash flow without taking a traditional term loan.

– Q: How quickly can I access funds from my invoices?
A: Many providers release 80–95% of an approved invoice within 24–72 hours once your facility is set up.

– Q: Will submitting a Fast Business Loans enquiry affect my credit score?
A: No, the enquiry is not an application and won’t affect your credit rating; lenders only run checks if you choose to proceed.

– Q: Is Fast Business Loans a lender and what does your service cost?
A: Fast Business Loans is an introducer that matches UK businesses with lenders and brokers, and the matching service is free and without obligation.

– Q: What’s the difference between invoice factoring and invoice discounting?
A: Factoring typically includes the provider handling collections and may be visible to customers, while discounting is usually confidential and you keep credit control.

– Q: Am I eligible for invoice finance and is there a minimum amount?
A: UK limited companies with B2B sales and funding needs from roughly £10,000 upwards are typically eligible, with stronger debtor quality improving access and pricing.

– Q: How much of each invoice can I fund?
A: Advance rates commonly range from 80% to 95% depending on your sector, customer credit strength, and facility type.

– Q: What are the typical costs and fees of invoice finance?
A: You’ll usually pay a discount/finance charge plus a service or administration fee, and sometimes setup or exit fees.

– Q: What documents do I need to get started?
A: Lenders typically ask for an aged debtor ledger, recent invoices, customer contracts or POs, company accounts or bank statements, and director ID/KYC.

– Q: What happens if a customer doesn’t pay the invoice?
A: With recourse facilities you may need to repay the advance, while non-recourse can cover eligible bad debts at a higher cost and subject to provider terms.