Invoice Finance for UK Businesses

Summary: Invoice finance (also called invoice financing) unlocks cash tied up in unpaid customer invoices so your business can access working capital fast — often within 24–48 hours once a facility is set up. Fast Business Loans doesn’t provide loans; we match your limited company with lenders and brokers who specialise in invoice factoring, discounting and selective solutions. Our free enquiry service helps you compare options and receive a no‑obligation quote. Complete a Free Eligibility Check to get started: Free Eligibility Check.

What is invoice finance?

Invoice finance is a form of working capital that releases money from unpaid sales invoices so businesses don’t have to wait for customers to pay. Instead of borrowing against property or other assets, invoice finance leverages your ledger — the invoices you’ve already raised to other UK businesses — to provide immediate cash.

• Also known as: invoice financing, invoice factoring, invoice discounting.
• Typical advances: 70%–95% of the invoice value (depends on provider and client risk).
• Fast Business Loans role: we introduce you to lenders and brokers who can offer these facilities; we do not lend.

How invoice finance works (step-by-step)

1. Raise a B2B invoice to your customer as normal.
2. You or your broker submit the invoice to the finance provider.
3. The provider advances a percentage (the “advance rate”) to your account — typically within 24–48 hours once the facility is live.
4. Your customer pays the invoice to the provider or to you depending on the product.
5. The provider pays the remaining balance to you, less fees.

Most facilities are structured to scale with your sales ledger. To see if invoice finance is a fit for your company, start a quick enquiry: Get Quote Now.

Types of invoice finance

Invoice factoring

The provider manages credit control and collections on your behalf. This can be useful if you want outsourcing of debtor management and predictable cashflow. Customers are usually notified that a third party is managing payments.

Confidential invoice discounting

You retain control of collections and the arrangement is undisclosed to your customers. Discounting suits businesses that want to keep relationships with customers private while accessing rapid cash.

Selective (spot) invoice finance

Finance individual invoices rather than the whole ledger. Good for seasonal peaks, one-off large invoices, or trying the product before committing to a full facility.

Specialist options (back-to-back, CHOCs, export factoring)

There are niche structures for supply-chain deals, international receivables or transaction-specific funding. A broker can advise which is most suitable.

When invoice finance makes sense

• Your customers typically pay on 30–120 day terms and cash is tied up in the ledger.
• Rapid growth is outpacing working capital — you need funds to buy materials or hire staff.
• Seasonal businesses with cashflow peaks and troughs.
• You have a strong sales ledger made up of creditworthy businesses (B2B invoices).
• You want funding from around £10,000 and up (many providers specialise in larger facilities).

Benefits and considerations

Costs & example calculation

Invoice finance charges are typically made up of:

• Advance fee / discount fee (a percentage of the invoice value or a daily rate)
• Service / management fees
• Arrangement or set-up fees

Example (illustrative only):

• Invoice value: £50,000
• Advance rate: 85% → immediate advance = £42,500
• Discount fee: 0.5% per 30 days. If customer pays in 60 days, fee ≈ 1.0% = £500
• Service/arrangement fees: varies — may be a few hundred pounds
• Balance on payment: £50,000 − £42,500 − £500 − fees = remainder to business

Actual pricing depends on your customers’ credit, sector and the facility structure. Our matched partners provide transparent, personalised quotes. Start a Free Eligibility Check: Get Started — Free Eligibility Check.

Eligibility & documentation checklist

Typical eligibility criteria

• B2B invoices with verifiable customers (trade invoices, not consumer sales).
• Trading history — many providers prefer established businesses, though start-ups with confirmed contracts may qualify.
• Minimum facility sizes often start around £10,000 upwards.

Common documents lenders ask for

• Business registration details and directors’ IDs
• Recent bank statements (3–6 months)
• Management accounts and VAT returns
• Sales ledger and sample invoices
• Customer contracts or purchase orders

How Fast Business Loans connects you

We make the introduction process simple and fast. Our four-step matching process:

1. Complete one short enquiry form with a few business and funding details (takes under 2 minutes).
2. We match you to lenders and brokers who specialise in invoice finance for your sector.
3. Partners contact you with a tailored quote and next steps — usually within hours during business days.
4. Compare offers and choose the provider that best meets your objectives. There’s no obligation to proceed.

Submitting an enquiry will not affect your credit score. If you’re ready to compare options now, Get Quote Now.

Real-world example

Invoice finance vs other options

A broker can help determine whether invoice finance alone or a blended solution suits your needs.

Frequently asked questions

How quickly can I receive funds?

Once a facility is agreed and set up, many providers can advance a proportion of an invoice within 24–48 hours. Onboarding and approval depend on documentation and customer credit checks.

Will my customers know I’m using invoice finance?

With factoring, customers are normally notified because the provider manages collections. Confidential discounting keeps the arrangement hidden and you retain responsibility for collections.

Does applying affect my credit score?

Submitting an enquiry via Fast Business Loans does not affect your credit score. Lenders may carry out checks later if you apply directly.

Is there a minimum loan or facility size?

Many providers focus on facilities from around £10,000 upwards. Minimums vary by lender and product.

What happens if a customer doesn’t pay?

Depending on the product, the provider may pursue payment or, in some cases, you may retain the bad debt risk. Your matched broker will explain terms and protections.

Do you charge for introducing me to lenders?

No. Fast Business Loans’ service is free for business owners. You only pay fees to the lender if you accept and draw down finance.

Trust, privacy & disclaimer

Fast Business Loans introduces businesses to lenders and brokers; we do not provide finance or regulated advice. We work with a panel of trusted partners and share your details only with those relevant to your enquiry. All finance is subject to status, terms and provider criteria. For full details on how we handle your data, see our Privacy Policy.

Ready to unlock cashflow?

If your company has B2B invoices and you need funding from around £10,000+, fill in a short enquiry and we’ll match you with suitable lenders and brokers who can provide a fast, no‑obligation quote. It takes under two minutes: Start Your Free Eligibility Check.

/invoice-finance

– What is invoice finance and how does it work?
Invoice finance lets UK businesses release cash from unpaid B2B invoices by taking an advance (typically 70–95%) now and receiving the balance when the customer pays.

– How quickly can I receive funds?
Once your facility is set up, many providers can advance funds within 24–48 hours of submitting an eligible invoice.

– How much can I release against each invoice?
Advance rates usually range from 70% to 95% of the invoice value, depending on your sector, customer creditworthiness, and the provider.

– What’s the difference between invoice factoring and confidential invoice discounting?
Factoring involves the provider managing collections and notifying customers, while confidential invoice discounting keeps the facility undisclosed and you handle collections.

– Can I finance only selected invoices?
Yes—selective (spot) invoice finance lets you fund individual invoices without committing your whole ledger.

– Am I eligible, and what’s the minimum facility size?
You’ll typically need verifiable B2B invoices and a trading history (or firm contracts), with many facilities starting from around £10,000.

– What does invoice finance cost?
Costs usually include a discount/advance fee plus service and set-up fees, with pricing based on your customers’ credit, sector, and facility structure.

– What documents will lenders ask for?
Common requirements include business and director IDs, recent bank statements, management accounts, VAT returns, your sales ledger, and sample invoices.

– What happens if my customer doesn’t pay?
Bad-debt risk depends on the facility (recourse vs non-recourse), so either you retain the risk or the provider does—check the terms before proceeding.

– Is Fast Business Loans a lender, and does submitting an enquiry affect my credit score or cost anything?
Fast Business Loans is not a lender; our free, no‑obligation enquiry simply matches you with suitable brokers and lenders and does not affect your credit score.