Invoice Finance for UK Businesses: Unlock Cash Flow with Fast Business Loans

Summary: Invoice finance converts unpaid invoices into working capital so your business gets paid faster. Fast Business Loans does not lend directly — we match UK companies with specialist lenders and brokers who offer invoice factoring, discounting and selective invoice finance. If your business needs £10,000 or more, complete a Free Eligibility Check and we’ll connect you with the providers most likely to meet your needs. This page explains how invoice finance works, who benefits, what to expect, and how to get started.

What is Invoice Finance and How It Works?

Invoice finance is a short-term funding solution that unlocks cash tied up in unpaid invoices. Instead of waiting 30–120 days for clients to pay, a provider advances a percentage of the invoice value so you can cover payroll, buy stock, or invest in growth.

The basics in plain English

• Raise an invoice to your customer as normal.
• You send that invoice to an invoice finance provider (or they access it via your accounting system).
• The provider advances typically 70–90% of the invoice value within 24–72 hours.
• When the customer pays, the provider releases the remaining balance minus fees.

Types of invoice finance

• Invoice factoring: The provider manages collections and credit control on your debtor book.
• Invoice discounting: You retain control of collections; the provider advances funds against invoices.
• Selective invoice finance: Finance is provided only against chosen invoices or specific customers.

Typical costs, terms and eligibility

Fees vary by provider and risk profile. Expect combination of an advance fee or discount rate (a percentage of the invoice) and service/administration fees. Terms depend on turnover, debtor creditworthiness and sector — most lenders consider businesses seeking £10,000 and upwards.

Want to explore tailored options? Get a Free Eligibility Check and we’ll match you with specialist partners: Get Started – Free Eligibility Check.

Why Invoice Finance Matters for Cash Flow Stability

Invoice finance turns sales on paper into predictable cash. It is especially useful when your business faces:

• Late-paying customers that stretch working capital
• Rapid growth where sales outpace liquidity
• Seasonal fluctuations or one-off large orders
• Need to take supplier discounts or fulfil contract milestones

Benefits include faster access to funds, improved cashflow forecasting, and the ability to invest without taking on long-term debt. Risks and considerations: fees can be higher than standard loans, contract terms vary, and some forms (factoring) involve third‑party contact with your customers. Costs and outcomes depend on individual provider assessment.

How Fast Business Loans Helps You Secure the Right Invoice Finance Partner

Our matching process — simple, fast and no obligation

1. Complete a short enquiry (takes under 2 minutes).
2. We match your business to lenders and brokers in our panel who specialise in invoice finance for your sector.
3. Selected partners contact you with a quote and next steps — compare offers and decide at your pace.

We focus on speed and relevance: you’ll only be contacted by partners likely to fund your business, avoiding time wasted on unsuitable options. Start now with a Free Eligibility Check: Free Eligibility Check.

Our lender and broker network

We work with a broad panel of UK lenders and finance brokers covering invoice factoring, discounting and selective solutions. Partners are chosen for experience across industries and proven service delivery.

What makes our service different

• No cost to you for the introduction.
• Fast matching to suitable partners — typically within hours.
• Sector knowledge so you’re introduced to lenders who understand your market.

Who Invoice Finance Suits (Industry & Scenario Examples)

Invoice finance commonly helps SMEs and limited companies in sectors with invoice-led trade. Typical industries include manufacturing, logistics, recruitment, wholesale, professional services to businesses, and construction suppliers. It’s useful at stages such as:

• Scaling up production and needing working capital to buy raw materials.
• Winning a large contract that requires cash to deliver before being paid.
• Managing seasonal peaks where staff and stock costs rise before sales cash is received.

Even businesses with past credit issues may find suitable options via our network — eligibility is assessed by partners on a case‑by‑case basis.

Comparing Invoice Finance with Other Funding Routes

Invoice finance vs overdrafts and business loans

• Overdrafts are flexible but may be withdrawn by banks and can have variable rates.
• Business loans offer fixed repayment schedules and are suited for one-off investments.
• Invoice finance scales with sales and converts current assets (invoices) into cash — ideal when cash is tied up in receivables.

How invoice finance complements other facilities

Invoice finance can be used alongside asset finance, term loans or refinance arrangements to optimise working capital and fund growth. Your best solution will depend on your balance sheet, debtor profile and short‑term needs.

When invoice finance might not be right

If a business has a very small debtor book, highly volatile customers, or customer contracts that prohibit assignment, invoice finance may be less suitable. We’ll only match you to providers when there’s a reasonable chance of a fit.

What Information You’ll Need for an Invoice Finance Enquiry

Preparing key documents speeds the process. Typical information lenders request:

• Recent management accounts and turnover figures
• Details of your debtor book (major customers, invoice averages, payment terms)
• Age of business and trading history
• Copy invoices or sales ledger and any large outstanding balances

Tip: have your accounting software details or exported debtor list ready to speed assessment. Ready to proceed? Get Quote Now — Free Eligibility Check.

Real Results: Example Invoice Finance Outcome (Anonymised)

Challenge: A UK manufacturer with £750k annual turnover faced 90-day payment terms from a major buyer and needed cash to purchase raw materials for a new contract.

Solution via a matched partner: Through Fast Business Loans, the manufacturer was introduced to a specialist invoice discounter offering advances of 85% on approved invoices and tailored reporting integration with the manufacturer’s accounting system.

Outcome: The business accessed funds within 48 hours of submitting invoices, cleared supplier accounts, and completed the new contract on time. Liquidity improved and the company avoided a longer‑term loan. (Results are illustrative; individual outcomes vary.)

Frequently Asked Questions about Invoice Finance

Is Fast Business Loans a lender?

No. We are an introducer that connects businesses with lenders and brokers who provide invoice finance and other commercial finance solutions.

Will checking eligibility affect my credit score?

No. Submitting an enquiry via Fast Business Loans does not affect your credit rating. Lenders may perform credit checks later if you apply.

How soon can I access funds?

Many providers can release advances within 24–72 hours of invoice approval. Exact timing depends on the provider and the debtor’s credit profile.

What fees should I expect?

Fees vary: common charges include discount rates (a percentage of the invoice), service fees and set-up costs. Always review provider terms and compare quotes.

Will my customers be contacted?

With factoring, the provider typically handles collections and will contact customers. With discounting, you usually retain collections. Providers will explain their approach during the quote stage.

Are there minimum or maximum funding levels?

Our partners commonly work with amounts from around £10,000 upwards. Larger facilities are available depending on turnover and debtor profiles.

Start Your Free Invoice Finance Eligibility Check

Get a fast, no‑obligation quote: complete a quick enquiry so we can match you to the best lenders and brokers for invoice finance. It takes under 2 minutes and won’t affect your credit score.

Get Started — Free Eligibility Check

If you prefer, call our team and we’ll explain the matching process and the documents you’ll need. Submit your enquiry and a matched partner will be in touch to discuss options and costs.

Disclosure & Important Notes

Fast Business Loans is an introducer; we do not lend directly or provide regulated financial advice. Submitting an enquiry shares your details with selected lenders and brokers so they can contact you about matching finance solutions. Funding decisions, terms and fees are determined by the lender or broker and may vary by case.

All information on this page is for guidance only. Before entering any agreement, review lender terms carefully and consider independent professional advice if you are unsure.

Further reading: learn more about invoice finance options on our detailed guide to invoice finance.

Fast Business Loans organises funding introductions for UK businesses seeking £10,000 and upwards. Our service is free to use and there is no obligation to proceed once you receive quotes. By submitting an enquiry you agree we may share contact and business details with our finance partners so they can contact you about funding options.

– What is invoice finance and how does it work?
Invoice finance advances typically 70–90% of approved invoices within 24–72 hours, releasing the remainder minus fees when your customer pays.

– What’s the difference between invoice factoring, invoice discounting and selective invoice finance?
Factoring involves the provider managing collections, discounting lets you retain credit control, and selective invoice finance funds only chosen invoices or customers.

– Is Fast Business Loans a lender?
No—Fast Business Loans is an introducer that connects UK businesses with trusted invoice finance lenders and brokers.

– Is your service free and without obligation?
Yes—using Fast Business Loans to get matched is free and there’s no obligation to proceed.

– Will the Free Eligibility Check affect my credit score?
No—your enquiry won’t affect your credit score, and any credit checks occur only if you proceed with a lender.

– Is the enquiry form a loan application?
No—the enquiry is a quick information check used to match you with suitable providers, not a formal application.

– How quickly can I access funds through invoice finance?
Many providers can release funds within 24–72 hours of invoice approval, depending on your debtor profile and the lender.

– What fees should I expect with invoice finance?
Costs usually include a discount rate (percentage of the invoice) plus service or administration fees, which vary by provider and risk.

– What’s the minimum funding amount available?
Our partners typically offer facilities from around £10,000 upwards, subject to turnover and debtor quality.

– Will my customers be contacted if I use invoice finance?
With factoring the provider usually contacts your customers, while with discounting you normally handle collections yourself.