Invoice Finance for UK Businesses

Unlock cash tied up in unpaid invoices so you can run and grow your business with confidence. Fast Business Loans connects limited companies and trading businesses (loans and facilities from around £10,000 upwards) with specialist invoice finance brokers and lenders—quickly, securely and with no obligation.

• Free eligibility check — takes under 2 minutes
• Matches you with providers who understand your sector
• No obligation, no credit impact from the enquiry

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Summary

Invoice finance converts unpaid invoices into immediate working capital. There are two main approaches—invoice factoring (where the funder may manage collections) and invoice discounting (where collections remain with you). Advance rates commonly range from c.70–90% of invoice value, and funds can be released within 24–48 hours after checks. Fast Business Loans doesn’t lend directly; we match qualifying businesses with brokers and lenders who can provide tailored invoice finance facilities. To see what you could unlock, complete a short enquiry now — it’s free and carries no obligation.

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What is invoice finance?

Invoice finance is a working capital solution that turns unpaid invoices into cash. Instead of waiting 30–120 days for customer payments, a lender or factoring company advances a large percentage of each invoice so you can cover payroll, buy stock or invest in growth.

Factoring vs discounting — quick comparison

• Invoice factoring: The funder typically takes responsibility for collections and may notify your customers. Useful if you want support with debtor management.
• Invoice discounting: Confidential facility where your business keeps control of customer communications and collections.

Both release cash tied up in invoices, but they suit different operational preferences and levels of confidentiality.

How Fast Business Loans can help

Fast Business Loans is a free introducer service that connects you with invoice finance brokers and lenders who specialise in UK SMEs. We:

• Match your business to providers most likely to offer suitable terms
• Reduce time spent contacting multiple lenders
• Explain what different types of invoice finance mean for your operations

We do not provide loans or give regulated financial advice. Rather, we collect a short set of details from you and use those to put you in touch with the most relevant brokers and lenders. Submitting an enquiry with us is not an application and does not affect your credit score.

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Invoice finance — step by step

1. Enquire: You complete a short online enquiry (no obligation).
2. Match: We match you with lenders/brokers suited to your sector and invoice profile.
3. Approval & advance: Once a funder carries out due diligence, they typically advance up to c.70–90% of each approved invoice.
4. Customer pays: Your customer settles the invoice with the funder or your business (depending on the product).
5. Balance release: The funder releases the remaining balance to you, less fees and any withholding (reserve).

Timelines: once the facility is set up, providers can release funds within 24–48 hours for approved invoices. Setting up a facility usually takes days to a few weeks depending on checks and legal requirements.

Who typically uses invoice finance?

Invoice finance is commonly used by limited companies and growing businesses that invoice other businesses (B2B) and need faster access to working capital. Typical sectors include:

Construction & trades

Long payment cycles and staged invoicing can create cash gaps. Invoice finance helps contractors pay suppliers and staff while projects progress.

Manufacturing & engineering

Large production runs and supply costs can be smoothed by advancing invoice value rather than waiting for long customer terms.

Logistics, wholesale & distribution

High volumes and thin margins require predictable cash flow: invoice finance converts receivables into usable capital.

Professional & creative services

Agencies and consultancies with long client payment terms can use discounting to maintain confidentiality while accessing cash.

Benefits & considerations

The bottom line? Invoice finance can be a flexible, fast way to bridge cash flow gaps, but it’s important to compare terms and understand whether factoring or discounting fits your business operations.

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Eligibility & documents checklist

Typical criteria providers consider:

• Business structure: limited companies and trading businesses (not sole traders)
• Minimum facility sizes: most lenders work from around £10,000 upwards
• Turnover and invoice volumes: lenders prefer regular, repeatable invoicing
• Debtor quality: who owes your invoices and their payment history
• Trading history: many lenders prefer an established trading record, though some brokers work with newer businesses if debtors are strong

Common documents requested during assessment:

• Aged debtor report or sample invoices
• Recent management accounts or bank statements
• Details of major customers and contract terms
• ID and company documentation for directors and stakeholders

Fast Business Loans helps identify providers whose criteria align with your situation so you submit the right paperwork to speed approval.

Cost structure explained

Invoice finance costs depend on the provider and the product. Typical fee types include:

• Discount or finance fee: a percentage charged on the invoiced amount while it’s outstanding (often expressed as a monthly rate).
• Service fee: for administration, collections and account management.
• Facility or arrangement fee: one-off setup or annual fees in some agreements.

Broad ranges (illustrative only): discount fees can start from around 0.5–2% per month depending on sector, debtor risk and volume. Exact pricing is provided by lenders/brokers after assessment. We’ll connect you with partners who supply clear fee schedules so you can compare like-for-like.

Invoice finance vs alternatives

Case study — illustrative example

Illustrative example: A Midlands-based manufacturing company with 60-day payment terms was regularly overstretched between paying suppliers and wages. By using invoice discounting they accessed 85% of each invoice within 48 hours, smoothing payroll cycles and enabling them to accept larger orders. They paid a monthly finance fee and a small service charge. Individual results vary; this example is illustrative only.

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Why use Fast Business Loans

• Quick smart matching: We connect you with brokers and lenders who specialise in your sector.
• Save time: One short enquiry replaces multiple searches and calls.
• Free & no obligation: Our service is free for businesses and you are under no pressure to accept any quote.
• Secure & confidential: Your details are only shared with partners who can help and for the purpose of matching your enquiry.

Want to find out what your invoices could unlock? Start Your Free Eligibility Check

Frequently asked questions

Disclosure

Fast Business Loans is an introducer. We do not lend and we do not provide regulated financial advice. Any finance offers, pricing and decisions are provided by the lender or broker you are introduced to and are subject to status and terms. Completing our enquiry is a short, no-obligation step that helps us match you with providers who can help. We recommend reviewing any provider terms carefully before accepting an offer.

Learn more about invoice finance and how the product works in depth on our pillar resource about invoice finance.

Your information is handled securely and only shared with approved partners able to help with your request. For a quick comparison of options, Get Your Free Eligibility Check — it’s free and takes under two minutes.

– What is invoice finance and how does it work for UK businesses?
Invoice finance turns your unpaid B2B invoices into immediate working capital by advancing around 70–90% upfront and releasing the balance when your customer pays, minus fees.

– What’s the difference between invoice factoring and invoice discounting?
Invoice factoring usually includes the funder managing collections and notifying customers, while invoice discounting is a confidential facility where you retain credit control.

– How quickly can invoice finance release cash?
Once your facility is live, many UK providers release funds within 24–48 hours for approved invoices, with initial setup typically taking a few days to a couple of weeks.

– How much of each invoice can I access in advance?
Typical advance rates range from about 70% to 90% of the invoice value, depending on sector, debtor quality, and provider terms.

– Who is eligible for invoice finance and what are the minimums?
Providers generally support limited companies and trading businesses that invoice other businesses, with facilities from around £10,000 and some considering early-stage firms if debtors are strong.

– Will submitting an enquiry with Fast Business Loans affect my credit score or obligate me to proceed?
No—our quick enquiry is a free, no‑obligation match and does not affect your credit score, with any checks only happening if you choose to proceed with a specific provider.

– What does invoice finance cost in the UK?
Costs usually comprise a discount/finance fee (often around 0.5–2% per month), a service fee, and sometimes a facility fee, with exact pricing confirmed after assessment.

– What documents will I need for an invoice finance assessment?
Common requests include an aged debtor report or sample invoices, recent management accounts or bank statements, major customer details/contracts, and director/company ID.

– Will my customers know I’m using invoice finance?
In factoring the customer is often notified because the funder handles collections, whereas discounting can remain confidential with you managing payments.

– How does Fast Business Loans help me compare invoice finance providers?
We match your details to specialist UK brokers and lenders who understand your sector so you can compare terms quickly without contacting multiple providers or impacting your credit score.