Invoice Finance for UK Businesses

Summary: If your business carries unpaid invoices and needs faster access to cash, invoice finance can release the cash tied up in your sales ledger. Fast Business Loans doesn’t lend money — we match established UK companies (typically from £10,000 facility value upward) with specialist invoice finance lenders and brokers who best fit your sector and debtor profile. Use our free, no-obligation eligibility check to compare factoring, invoice discounting and selective finance without affecting your credit score. Free Eligibility Check

What is Invoice Finance?

Invoice finance is a working capital solution that enables a business to access a large portion of the value of an issued invoice immediately, instead of waiting for customers to pay on 30–120 day terms. It is not a traditional loan secured against property — it is a facility that advances funds against your sales ledger to smooth cashflow, pay suppliers, hire staff, or invest in growth.

Key benefits at a glance: faster cashflow, improved working capital, and the ability to scale without waiting on customer payments. Fast Business Loans can introduce you to providers who specialise in your sector and debtor type so you get a structure that fits your needs.

How Invoice Finance Works (Step by step)

1. Tell us about your business. Complete a short enquiry so we can understand your turnover, average invoice sizes and debtor profile. This is a matching step — not an application. Get a Free Eligibility Check.
2. We match you to suitable lenders/brokers. Based on your details we introduce you to up to several partners who specialise in your industry and invoice types.
3. Lender performs due diligence. The chosen provider will review your invoices, debtors and accounts. This may include identity checks and credit checks with your consent.
4. Facility goes live and you draw funds. Once agreed, you upload invoices and receive an advance (typically a percentage of the invoice value). The balance is released to you minus fees when the customer pays.

Note: submitting an enquiry to Fast Business Loans does not affect your credit file. Lenders may run checks later during the formal application process with your permission.

Illustrative Cashflow Timeline

Invoice Finance Options We Can Introduce

We work with brokers and lenders offering a range of invoice funding structures. Your business needs, control preferences and customer relationships determine the right option:

Invoice Factoring

Factoring releases funds and typically includes collections and credit control services. The factor may contact your customers directly to collect payments.

• Pros: immediate cash, outsourced debtor management, often accepts wider debtor risk.
• Considerations: customers usually become aware; costs can be higher than confidential discounting.

Invoice Discounting

Discounting is usually confidential — you retain control of customer communications and collections while getting advances against invoices.

• Pros: discreet, suits businesses that want to keep credit control in-house.
• Considerations: typically requires stronger internal controls and financial reporting.

Selective & Spot Invoice Finance

Selective or spot funding lets you choose which invoices to fund rather than the whole ledger — ideal for seasonal spikes or one-off large contracts.

• Pros: flexibility, can often be arranged quickly.
• Considerations: per-invoice fees may be higher; availability varies by provider.

For sector-specific solutions (for example construction invoice finance) we can match you to partners experienced in those industries. You can also read more about invoice finance options on our detailed guide to invoice finance.

Is Invoice Finance Right for Your Business?

Invoice finance suits limited companies that:

• Sell products or services to other businesses and raise invoices on credit terms;
• Need working capital without adding long-term debt on the balance sheet;
• Have reliable / creditworthy customers (debtors are as important as the business);
• Seek flexible facilities from around £10,000 upwards.

Common Sectors Using Invoice Finance

• Construction and subcontractors
• Manufacturing and wholesalers
• Logistics and transport
• Recruitment agencies and professional services
• Healthcare suppliers and trade distribution

If you’re unsure whether invoice finance fits your plans, complete a quick enquiry and we’ll match you with the right specialist to discuss options. Free Eligibility Check.

Costs, Fees and Key Considerations

Costs vary by provider, debtor risk and facility type. Be clear on the structure and ask for a full cost breakdown from any lender or broker you speak to. Typical fee elements include:

• Advance rate (percentage of invoice value advanced up front).
• Discount rate (interest-style fee applied to invoice value while outstanding).
• Service fees (facility fee, management fee, setup or renewal fees).
• Bad debt protection premium (if non-recourse facility).

Indicative ranges (illustrative only): discount rates often start from around 0.5%–2.5% per month depending on debtor risk and volume; smaller or higher-risk invoices cost more. Always obtain a written example scenario from the lender.

Example Cost Scenario

Figures are illustrative—actual terms depend on lender assessment. Ask potential funders for a worked example before committing.

How Fast Business Loans Helps You Secure the Right Facility

We act as a free introducer to a panel of lenders and brokers. Our process is designed to save you time and increase your chances of a suitable match.

1. Short enquiry: tell us a few details about turnover, invoice profile and funding needs.
2. Fast matching: we shortlist partners with relevant sector experience.
3. Introduction: selected lenders or brokers contact you directly to perform due diligence.
4. Compare and decide: review offers and choose the best fit. There’s no obligation to proceed.

Our service is free for businesses. We are paid by the partner you choose should you proceed — completing the enquiry is not an application and does not commit you to any lender. Get Quote Now.

Our Matching Process (Fast, Free, No Obligation)

• We keep your data secure and only share it with partners that can help;
• Introductions are made quickly — many businesses hear back within hours during business days;
• We do not provide financial advice; partners will outline products and costs for you to consider.

Benefits of Using Fast Business Loans vs Going Direct

Eligibility & Documents Checklist

Common information lenders request:

• Company name, registration number and address;
• Annual turnover and management accounts or filed accounts;
• Sample ledger or list of outstanding invoices (debtor names, invoice dates, values);
• Details of top debtors and average payment terms;
• Recent bank statements and any existing finance agreements.

Having these ready will speed up lender assessments. Remember: enquiry is non-binding and does not affect your credit score.

Invoice Finance FAQs

What types of businesses qualify for invoice finance?

Businesses that invoice other limited companies or public-sector bodies on credit terms—typically B2B suppliers across construction, manufacturing, logistics and services—often qualify. The key is the quality and predictability of your debtors.

Can I finance a single invoice or must I fund the whole ledger?

You can do either. Full ledger facilities fund most or all invoices; selective/spot finance allows you to pick which invoices you want to fund.

How quickly can we receive funds once approved?

Once a facility is agreed, funds for eligible invoices can be advanced within 24–48 hours of invoice submission, subject to lender processes and verification.

Will our customers know we’re using invoice finance?

If you use factoring, customers will usually be notified because the factor handles collections. Confidential invoice discounting keeps collections in your control and customers may not be aware.

What happens if a customer doesn’t pay?

It depends on facility type. With non-recourse facilities the lender bears specific bad debt risk (subject to terms). With recourse facilities your business may be required to repay advances for unpaid invoices. Always check terms carefully.

Does submitting an enquiry affect our credit score?

No. Completing Fast Business Loans’ enquiry form does not affect your credit score. Providers may run credit checks later with your consent.

Get Started in Minutes

Ready to unlock cash from unpaid invoices? Complete our short enquiry and we’ll match you with vetted lenders and brokers who specialise in invoice finance. The form takes under two minutes and is a free, no-obligation eligibility check. Start Your Enquiry

Important Information & Disclaimers

Fast Business Loans is an introducer — we do not lend money and we do not provide regulated financial advice. We introduce businesses to lenders and brokers who may offer finance subject to status, credit checks and the lender’s due diligence. All finance costs, terms and conditions are set by the lender or broker you choose. Completing an enquiry does not commit you to proceed and will not affect your credit score. Fast Business Loans may receive a fee or commission from partners when introductions lead to completed facilities.

Questions? Visit our home page or complete a quick form to get matched with invoice finance specialists. For privacy or complaints information see our site footer links.

– What is invoice finance and how does it work? It’s a facility that advances a percentage of your B2B invoices within 24–48 hours, with the balance paid to you (minus fees) when your customer settles.
– What’s the difference between invoice factoring and invoice discounting? Invoice factoring includes collections and usually notifies customers, while confidential invoice discounting lets you keep credit control in-house.
– Can I fund a single invoice or do I have to finance my whole ledger? You can choose selective/spot invoice finance for individual invoices or a full-ledger facility to fund most invoices.
– Who is eligible for invoice finance in the UK? UK limited companies that regularly invoice other businesses on credit terms—often in construction, manufacturing, logistics, recruitment and services—may qualify, typically from around £10,000 facility value upwards subject to debtor quality.
– How quickly can I receive funds once set up? After approval, eligible invoices are commonly advanced within 24–48 hours, subject to provider verification.
– Does submitting an enquiry affect my credit score? No—Fast Business Loans’ free eligibility check is non-binding and won’t impact your credit score, though lenders may run checks later with your consent.
– What does invoice finance cost? Fees typically include an advance rate, a discount rate of roughly 0.5%–2.5% per month while invoices are outstanding, service/management fees, and optional bad debt protection.
– Will my customers know I’m using invoice finance? With factoring they’re usually notified because the factor collects payments, while confidential invoice discounting generally keeps customers unaware.
– What happens if a customer doesn’t pay? In a non-recourse (bad debt protected) facility the funder may bear specified credit risk, whereas in recourse facilities you’re responsible for repaying advances on unpaid invoices—always check terms.
– Is Fast Business Loans a lender and how do you help? We’re not a lender; we’re a free introducer that matches UK businesses to suitable invoice finance lenders and brokers so you can compare options with no obligation.