Invoice Finance for UK Businesses: Unlock Cash Flow Fast

Summary: Invoice finance (factoring and discounting) helps UK SMEs release cash tied up in unpaid B2B invoices so you can pay staff, fulfil large orders and grow without waiting 30–120+ days for customers to pay. Fast Business Loans doesn’t lend — we match your business with the best lenders and brokers for invoice finance facilities (typical facilities from £10,000 upwards). Complete a short enquiry to get matched quickly and confidentially: Free Eligibility Check.

What is invoice finance and when does it make sense?

Invoice finance is a way to turn unpaid B2B invoices into immediate working capital. Instead of waiting for customers to pay in 30–120+ days, an invoice finance provider advances you a large portion of the invoice value and pays the remainder (less fees) once the customer settles.

The two main structures are:

• Invoice factoring – the provider usually takes responsibility for collecting payments and may contact your customers directly. Good for businesses that want to outsource credit control.
• Invoice discounting – you retain control of collections and your customers often remain unaware of the facility. Suited to firms that want confidentiality.

Invoice finance makes sense when you have:

• Large volumes of B2B invoices or long payment terms
• Growth opportunities that require fast cash (e.g., fulfil a big order)
• Seasonal peaks or payroll pressures
• Debtor-led funding is more suitable than additional secured borrowing

Invoice finance at a glance: fast facts

Start Your Free Eligibility Check

How the Fast Business Loans matching service works

We make finding the right invoice finance solution quick and simple. Our four-step matching process:

1. Short enquiry: You complete a quick, secure form detailing your business, turnover band and funding needs.
2. Tailored match: We compare providers and select brokers/lenders who specialise in your sector and size of facility.
3. Introduction: Selected partners contact you to discuss terms and document checks — there is no obligation to proceed.
4. Compare and decide: Review multiple offers and choose the lender or broker that fits your cashflow needs.

Our introductions are free to use and non-binding. Completing the 2-minute form will not affect your credit score: Get a Free Eligibility Check.

Invoice finance options we can help you compare

Factoring vs discounting

Factoring provides finance plus collections support — the factor may take on credit control tasks. Discounting advances funds while you keep collections in-house and customers usually don’t know.

Selective invoice finance

Want to fund just a few large invoices? Selective finance (single invoice or spot factoring) lets you draw down against individual invoices rather than the whole ledger.

Confidential and blended solutions

Some providers offer confidential discounting, hybrid products or blended facilities combining asset and invoice finance to suit complex funding needs or to keep customer relationships intact.

Add-on services

• Bad debt protection/credit insurance
• Foreign invoice funding for export sales
• Supply chain finance or debtor management reporting

Learn more about typical supplier options and how they compare in our detailed guide to invoice finance.

Benefits and considerations

Key advantages for cash flow & growth

• Immediate cash from unpaid invoices improves liquidity and reduces reliance on overdrafts.
• Enables growth — take larger orders, pay suppliers, hire staff without waiting for customer payments.
• Flexible matching: facilities grow with your sales ledger.
• Outsourcing collections (factoring) saves time for sales and operations teams.

Costs, risks and suitability checks

• Fees typically include a service fee and a discount/interest rate on advanced funds — rates vary by provider and debtor risk.
• Debtor quality matters. Providers assess your customers’ creditworthiness; poor debtor profiles may reduce advance rates or increase charges.
• Using factoring can alter how customers are contacted — choose confidential options if this is a concern.
• Facilities require accurate invoicing and documentation; ensure your records and contracts are organised.

We introduce you to lenders who will explain specific costs and terms so you can compare fairly. Fast Business Loans is an introducer, not a lender; the providers set fees and terms.

Who invoice finance suits — and who it may not

If you’re unsure whether invoice finance is right, complete a free enquiry and we’ll match you to partners who can advise on suitability for your sector and turnover band (from £10k upwards).

Preparing your business for an invoice finance application

Speed up approval by preparing these items:

1. Aged debtor report and recent sales ledger
2. Copies of typical invoices and customer contracts
3. Latest management accounts, bank statements and VAT returns (if applicable)
4. Details of key customers (names, payment terms, credit history)
5. Information on any existing finance facilities

Good housekeeping (clear invoices, evidence of delivery/works, and documented credit control) helps secure better advance rates and faster funding.

Ready to be matched? Get Quote Now — it takes less than 2 minutes.

Our panel of UK invoice finance brokers & lenders

We work with an established panel of brokers and lenders experienced in invoice finance across many sectors. Partners are chosen for:

• Sector expertise and track record
• Range of facility sizes and flexible product offerings
• Clear communication and fair terms
• Data security and confidentiality practices

Fast Business Loans introduces you to relevant partners only — you decide which quote to accept. Our service is free and non-binding.

Success stories: how invoice finance helped businesses like yours

Case 1 — Manufacturer: A manufacturer with a 60-day payment cycle used invoice discounting to access 85% advance on invoices. Funds were available within 48 hours, enabling the business to buy materials and increase output by 30% over three months.

Case 2 — Recruitment firm: A recruitment agency needed cash for weekly payroll while waiting for client invoices. Factoring provided immediate cash for payroll and outsourced credit control. The firm reduced admin time and improved cash predictability, enabling growth.

Get Matched with an Invoice Finance Specialist

Invoice finance FAQs

How quickly can I access funds after approval?

Many providers can release an advance within 24–48 hours of approval and required checks, though times vary by lender and customer credit profile.

Will invoice finance affect customer relationships?

With invoice discounting, collections remain with you and customers are often unaware. With factoring, the provider may contact customers; reputable partners use professional processes to protect relationships.

What fees should I expect?

Typical costs include a service fee (percentage of turnover or facility fee) and a discount rate (interest on advanced funds). Exact pricing depends on debtor risk and facility structure.

Can startups use invoice finance?

Some providers accept newer businesses if invoices are to creditworthy customers and turnover meets minimum requirements. Discuss your situation via a free enquiry to see available options.

Does applying affect my credit score?

Submitting an enquiry through Fast Business Loans does not affect your credit score. A lender may perform credit checks only if you proceed with an application.

Can I fund export invoices?

Yes — many providers offer export invoice funding and international debtor facilities, subject to buyer creditworthiness and jurisdictional checks.

What happens if my customer doesn’t pay?

Outcomes depend on your agreement. Some facilities include collections and bad-debt protection; others require repayment of advances if customers default. Providers will explain options during the quote stage.

Ready to unlock cash flow?

If unpaid invoices are holding your business back, invoice finance can release working capital quickly and predictably. Fast Business Loans will match you with lenders and brokers who specialise in invoice finance for businesses seeking facilities from £10,000 upwards.

No obligation — no fee. Complete a short enquiry now: Free Eligibility Check

Disclosure: Fast Business Loans is an introducer that connects businesses with lenders and brokers. We do not lend or provide regulated financial advice. Information on this page is for guidance only; specific terms, eligibility and fees are set by the lender or broker. Eligibility is subject to status. Always consider seeking independent professional advice for your circumstances. See our privacy policy for details on data handling.

– Q: What is invoice finance and how does it work?
A: It lets UK businesses unlock cash tied up in unpaid B2B invoices by advancing 70–95% now and paying the balance (minus fees) when your customer pays.

– Q: What’s the difference between invoice factoring and invoice discounting?
A: Factoring includes the provider handling collections and contacting customers, while discounting keeps collections in-house and is often confidential.

– Q: How quickly can I access funds through invoice finance?
A: Many providers release advances within 24–48 hours of approval and required checks.

– Q: How much funding can I get against my invoices?
A: Typical advance rates are 70–95% with facilities available from around £10,000 to several million, depending on your ledger and debtor quality.

– Q: What fees should I expect with invoice finance?
A: Costs usually include a service fee plus a discount/interest rate on funds advanced, with pricing based on debtor risk and facility type.

– Q: Will using invoice finance affect my customer relationships?
A: Invoice discounting is often confidential, while factoring involves provider contact managed professionally to protect relationships.

– Q: Who is eligible for invoice finance?
A: UK limited companies that issue regular B2B invoices (including some startups) may qualify if invoices are to creditworthy customers and turnover meets provider minimums.

– Q: What documents will I need to get started?
A: Prepare an aged debtor report, recent sales ledger, sample invoices/contracts, management accounts, bank statements, VAT returns, and details of key customers.

– Q: Can I fund only selected invoices or export invoices?
A: Yes—selective (spot) invoice finance and export facilities are available subject to buyer credit checks and provider criteria.

– Q: How does Fast Business Loans work and will submitting an enquiry affect my credit score?
A: Fast Business Loans is an introducer (not a lender) and your quick, free, no-obligation enquiry simply matches you with suitable brokers/lenders without affecting your credit score.