Invoice Finance for UK Businesses – Compare Lenders Fast

Summary: Invoice finance turns unpaid invoices into working capital so your business can pay staff, buy stock and grow. Fast Business Loans does not lend money — we match limited companies and SMEs (loans from around £10,000+) with invoice finance lenders and brokers who best fit your sector and circumstances. Use our free eligibility check to get matched quickly and securely — no obligation and no impact to your credit score for an initial enquiry.

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What is invoice finance and how it works

Invoice finance (also known as accounts receivable financing) gives you access to the cash tied up in unpaid invoices. Instead of waiting 30–120 days for customer payments, a lender or broker advances a percentage of the invoice value so you can cover day-to-day costs.

Two common types:

• Invoice factoring – the provider typically handles collections and credit control. Your customers may be contacted by the factoring company.
• Invoice discounting – you retain control of credit control; the funding is confidential and customers usually do not know you have discounting in place.

Typical process in three steps:

1. Apply or enquire via a matching service (free, quick, no obligation).
2. Provider assesses your invoices and customers (due diligence).
3. Advance paid (often up to 70–90% of invoice value), with remaining balance released after customer payment minus fees.

Want to compare options? Get Invoice Finance Quotes Today.

Is invoice finance right for your business?

Invoice finance suits businesses that invoice other businesses (B2B) and have cash tied up in receivables. Typical sectors include manufacturing, logistics, recruitment, wholesale, and professional services operating as limited companies or established SMEs.

Who benefits most:

• Businesses with consistent invoicing and creditable customers.
• Companies growing quickly that need working capital to take on new contracts.
• Firms with invoice concentrations or seasonal cashflow swings.

Typical eligibility checklist:

• Limited company or established SME (we organise funding from ~£10,000 upwards).
• Invoices to commercial customers with verifiable credit.
• Turnover and aged debtor ledger that interest invoice funders.

Key benefits of invoice finance

• Faster access to cash: Release most of an invoice’s value within 24–72 hours after approval.
• Smoother cash flow: Manage payroll, supplier payments and growth without waiting for customer terms.
• Scalable solution: Funding grows as your sales increase — useful for fast expansion.
• Optional credit control support: Factoring can include collections and debtor management.
• Flexible use: Funds can be used for any legitimate business purpose.

Remember: costs and contract terms vary between providers — read agreements carefully and compare quotes before committing.

Costs, fees and considerations

Invoice finance costs typically include a discount rate (a percentage of invoice value) and service fees. Exact pricing depends on your industry, invoice profile and customers’ credit strength.

• Advance rate: The percentage paid up-front (commonly 70–90%).
• Discount fee / interest: Charged on the advanced amount while the invoice is outstanding.
• Service fees: Monthly or setup fees for administration, account management and credit checks.
• Reserve / buffer: A small holdback may be retained until invoices are paid.
• Contract terms: Minimum terms and termination charges may apply.

Always compare APR-equivalent costs and ask for a full fee schedule. Our partners can help you review the small-print before you sign.

Fast Business Loans – how we match you with UK lenders

We are a specialist introducer that connects businesses with lenders and brokers who offer invoice finance. Our approach is fast, impartial and focused on matching businesses with partners that understand their sector.

How it works:

1. Quick enquiry: You complete a short form with basic business and invoice details (Get Started – Free Eligibility Check).
2. Targeted match: We compare your case to our panel and introduce you to the most relevant brokers or direct funders.
3. Rapid response: Selected partners contact you to request documents and provide quotes.
4. Choose provider: Review offers and instruct the lender or broker that best fits your needs — there’s no obligation to proceed.

We only make revenue when businesses complete the enquiry form and are introduced to providers. Our aim is to save you time and increase your chance of a suitable outcome.

Invoice finance vs alternative funding options

Invoice finance suits working-capital needs when money is tied up in receivables. Alternatives to consider:

• Business loan: Fixed-term borrowing with regular repayments — better for one-off investments.
• Overdraft / revolving credit: Flexible short-term borrowing but may be withdrawn by banks.
• Asset finance: Secured funding for vehicles or equipment.
• Merchant cash advance: Advance based on card sales — can be expensive and variable.

Speak to matched brokers to understand which option is most cost-effective for your plans.

Real-world scenarios we support

Here are three anonymised, practical examples of how invoice finance helps UK businesses:

• Manufacturer: A growing manufacturer used invoice discounting to free up working capital to buy raw materials for a large order — enabling on-time delivery and increased margins.
• Recruitment agency: An agency with 60-day client payment terms used factoring to fund payroll and reduce late-payment stress, while outsourcing collections to the factor.
• Logistics firm: A haulage company with concentrated invoices to a few large clients improved cashflow via discounting and won new contracts requiring upfront costs.

What to prepare before you enquire

Having the right documents speeds up matching and quoting:

• Recent aged debtor report / outstanding invoices.
• Latest 12 months turnover and management accounts.
• Details of top customers (concentration risk).
• Company incorporation details and director information.
• Any current CCJs or insolvency history (be transparent — many lenders can still help).

Submitting an enquiry to Fast Business Loans is a soft process initially — partners may request further documentation only after initial interest. Check Your Invoice Finance Options.

Frequently asked questions about invoice finance

How quickly can invoice finance release funds?

Many providers can advance up to 70–90% of an approved invoice within 24–72 hours of completing checks. Final balance is released after your customer pays, less fees.

Does enquiring affect my credit score?

Submitting an enquiry via Fast Business Loans does not affect your credit score. Partner lenders or brokers may perform soft or hard credit checks later if you choose to proceed.

Will my customers know I use invoice finance?

It depends. With factoring customers are usually notified and pay the factor. With confidential invoice discounting they typically will not know.

Can I finance international invoices?

Some funders specialise in foreign receivables and export finance. Eligibility depends on your customers’ countries and the contract terms.

What’s the difference between recourse and non-recourse factoring?

Recourse means you remain ultimately responsible if a debtor doesn’t pay; non-recourse transfers some bad-debt risk to the funder (usually more expensive and subject to terms and debtor creditworthiness).

What happens after I submit the enquiry form?

We match your details to suitable lenders/brokers who contact you directly to discuss options and request documents. There’s no obligation to proceed and you can compare quotes before deciding.

Get Invoice Finance Quotes Today

Start your invoice finance enquiry

Ready to unlock cash from unpaid invoices? Complete our short enquiry to receive matched quotes from lenders and brokers who specialise in invoice finance. It takes under 2 minutes, is free, and initial enquiries do not affect your credit score.

Free Eligibility Check — Get Quote Now

For further reading on structured invoice finance options and how they compare, see our detailed guide on invoice finance.

Fast Business Loans connects UK businesses with lenders and brokers for invoice finance and other business funding solutions. We are not a lender and do not provide financial advice. Information on this page is for general guidance only — costs, eligibility and terms vary between providers. Always review provider agreements and consider independent financial advice where appropriate. Our service is free and there is no obligation when you submit an enquiry.

– What is invoice finance and how does it work? It lets UK businesses unlock cash tied up in unpaid B2B invoices by advancing around 70–90% now and releasing the balance when the customer pays, minus fees.

– Is invoice finance right for my business? It typically suits limited companies and established SMEs that invoice other businesses, have creditworthy customers, and want smoother cash flow for payroll, stock, or growth.

– What’s the difference between invoice factoring and invoice discounting? Factoring usually includes the provider managing collections with customer notification, while discounting is confidential and you retain credit control, often at a lower service cost.

– How quickly can invoice finance release funds? Many providers can advance funds within 24–72 hours after approval and basic checks.

– How much of each invoice can I get upfront? Advance rates commonly range from 70–90% of the invoice value, with a small reserve released after payment clears.

– What are the typical costs and fees of invoice finance? Pricing generally includes a discount/interest rate on the advance plus service and setup fees, varying by sector, debtor quality, and facility type.

– Will my customers know I’m using invoice finance? With factoring they’re usually informed and pay the factor, while invoice discounting is typically confidential.

– Does submitting an enquiry via Fast Business Loans affect my credit score? No—our initial enquiry is a free, no‑obligation soft process that doesn’t affect your credit score, though partner checks may occur if you proceed.

– What documents do I need to start an invoice finance enquiry? An aged debtor report, recent turnover/management accounts, top-customer details, company and director information, and any CCJ/insolvency history help speed up quotes.

– How does Fast Business Loans’ matching process work and what does it cost? You complete a quick free eligibility check, we match you with suitable UK lenders/brokers who provide quotes, and our service is free with no obligation to proceed.