Invoice Finance for UK Businesses: Compare Trusted Brokers with Fast Business Loans

Summary: Invoice finance (factoring and discounting) helps UK businesses unlock cash tied up in unpaid invoices to improve cash flow, pay suppliers, and fuel growth. Fast Business Loans is a free introducer that matches limited companies and incorporated SMEs with vetted invoice finance brokers and lenders for funding from around £10,000 upwards. Use our quick, no-obligation Free Eligibility Check to get matched with the best providers for your situation.

Get a Free Eligibility Check — complete our short enquiry and we’ll match your business to lenders/brokers who specialise in invoice finance. No obligation, free to use.

What is invoice finance?

Invoice finance is a way for incorporated businesses to release working capital from unpaid customer invoices. Instead of waiting 30, 60 or 90+ days for customers to pay, a lender or broker advances most of the invoice value immediately. Two primary models are:

• Invoice factoring — the funder often manages collections and may be visible to your customers.
• Invoice discounting — you retain control of credit control and customer communications; the funder provides a confidential advance against your invoices.

Fast Business Loans does not lend or provide financial advice — we introduce your company to suitable lenders and brokers who can offer and explain options.

How invoice finance works (step-by-step)

1. Your business raises an invoice and supplies goods/services to a customer.
2. You submit the invoice details to the funder (via your broker or directly).
3. The funder advances a proportion of the invoice value (typically 70–90%).
4. When your customer pays the invoice, the funder returns the remaining balance minus fees.

Typical timeline: enquiry → initial offer in 24–72 hours (varies) → due diligence → facility live and funds available against new invoices.

Start Your Free Eligibility Check — tell us about your invoices and we’ll match you with specialists.

Why invoice finance matters for UK SMEs

Invoice finance helps businesses facing:

• Long customer payment terms (30–120 days).
• Rapid growth — needing working capital to fulfil orders.
• Seasonal peaks where cash is tied up in receivables.
• Supplier payment requirements or early-payment discounts to capture.

Industries that commonly benefit include manufacturing, distribution, logistics, recruitment, and trade contractors — essentially any sector that issues B2B invoices on terms.

If you’re not sure whether invoice finance is right for your sector or scenario, our introducer service can connect you quickly to a broker who will assess suitability — Get a Free Eligibility Check.

Invoice factoring vs invoice discounting vs selective options

Choosing between factoring and discounting depends on how much control you want to keep over customer contact and collections, plus cost and confidentiality considerations.

Speak to a specialist to compare features and costs for your business — Compare Invoice Finance Options.

Costs, fees and typical advance rates

Fees vary by lender, sector and debtor quality. Common charges include:

• Advance rate: typically 70–90% of invoice value on approval.
• Discount/finance charge: percentage applied to the advanced amount (often expressed as a monthly or annualised rate).
• Service/setup fees: one-off or ongoing platform and admin charges.
• Additional charges: credit insurance, charge for international collections, CHAPS/transfer fees.

Example cost scenario (illustrative only — actual terms vary)

Invoice value £100,000; advance 85% (£85,000). Finance charge equivalent 1.25% per month on drawn amounts for 30 days = approx £1,062. Service/admin fees £200. When customer pays, balance returned minus fees.

All numbers are indicative; exact pricing depends on debtor profile, sector risk and facility structure. Use our free matching service to get accurate quotes from several providers.

Eligibility checklist & documents to prepare

Typical lender checks for invoice finance facilities:

• Registered UK limited company or PLC (trading history usually required).
• Minimum funding sizes typically from around £10,000 upwards.
• Quality and concentration of your debtors (large proportion owed by one customer can affect terms).
• Proof of delivery or service and clear invoice terms.

Documents to prepare:

• Management accounts / recent VAT returns.
• Aged debtor list and sample invoices.
• Bank statements and company incorporation details.
• Details of any existing lending or charge over assets.

Having these ready speeds up the matching and approval process. When you submit an enquiry, you’ll be told exactly what the partner lenders need.

How Fast Business Loans helps you secure the right invoice finance partner

Our role is to match your business with brokers and lenders who specialise in invoice finance — saving you time and the risk of multiple unsuitable applications. The Fast Business Loans process:

1. Complete a short enquiry form with basic business and invoice details.
2. We match you to a selection of partners who best fit your sector and needs.
3. Partners contact you directly to discuss terms and perform due diligence.
4. You compare offers and choose the provider that suits you best.

Your enquiry does not affect your credit score. We only share your details with partners who can help and who we believe are relevant to your request. Ready to compare? Get Quote Now — Free Eligibility Check.

Risk considerations & responsible use

Invoice finance can be a powerful tool, but consider:

• Customer relationships — factoring may change how customers perceive your collections.
• Concentration risk — over-reliance on one or two debtors may limit facility size.
• Contract terms — check notice periods, termination fees and minimum usage clauses.

Work closely with your chosen broker or lender to understand all terms before committing. Fast Business Loans introduces you — decisions and contracts are between you and the provider.

Case study snapshot (illustrative)

Midlands manufacturer: trading history 3 years, £1.2m turnover, invoices to national retailers on 60-day terms. Using invoice finance they released £250k in working capital, used the cash to buy raw materials and accept a large order. Outcome: improved supplier terms, production scale-up and 15% revenue growth in 12 months.

See what a facility could do for your business — Start Your Free Eligibility Check.

FAQs – Invoice finance with Fast Business Loans

How quickly can I receive funds after approval?

Speed varies by provider and completeness of documentation, but many businesses receive advances within 24–72 hours of facility approval.

Will invoice finance affect my customer relationships?

Factoring can involve the funder contacting customers about payments; discounting is typically confidential. Your matched broker will explain the options and likely customer impact.

Can I access invoice finance for one-off invoices?

Yes — selective or spot invoice funding lets you factor or discount individual invoices without a full facility. Our partners can advise on suitability.

Does applying through Fast Business Loans affect my credit score?

Submitting an enquiry with Fast Business Loans does not affect your credit score. Individual lenders may run checks later if you decide to proceed.

What if my customer doesn’t pay?

Options depend on facility structure: recourse facilities hold you liable if a debtor fails to pay; non-recourse with bad-debt protection may transfer most of the credit risk but usually cost more. Discuss with your broker.

What is the minimum facility size?

Many providers work from around £10,000 upwards, though exact thresholds differ across lenders and sectors.

Next steps: start your invoice finance enquiry

Fast Business Loans makes it fast and simple to compare invoice finance options. Complete our short enquiry to be matched with specialist brokers and lenders who can provide quotes tailored to your invoices and industry.

Start Your Free Eligibility Check — it takes less than two minutes and is completely free with no obligation.

For more detailed background on types of invoice funding and how they can be applied to your business, see our pillar guide to invoice finance.

Compliance & transparency

Fast Business Loans is an introducer — not a lender or financial adviser. Our service is free for businesses and we do not charge applicants. We receive referral fees or commissions from partners in some cases; this does not increase the cost quoted to you by lenders. All matched providers will set out their fees and terms; please read these carefully and consider professional advice if you are unsure before entering any agreement.

Information on this page is correct at the time of publication and is indicative only. Terms and availability are subject to change.

– What is invoice finance and how does it work?
Invoice finance lets UK limited companies unlock 70–90% of unpaid invoices upfront, with the balance released when your customer pays minus fees.

– What’s the difference between invoice factoring and invoice discounting?
Factoring outsources collections and is often visible to customers, while discounting is usually confidential and you retain credit control.

– How quickly can I get funds after approval?
Many providers release funds within 24–72 hours of facility approval and receipt of invoice details.

– Will submitting an enquiry with Fast Business Loans affect my credit score?
No—our quick enquiry is not a loan application and won’t affect your credit score, though lenders may run checks if you proceed.

– What’s the minimum facility size and who is eligible?
Facilities typically start from around £10,000 for UK limited companies with trade invoices and some trading history, subject to sector and debtor quality.

– What documents do I need to provide?
You’ll usually need management accounts, bank statements, VAT returns, an aged debtor list and sample invoices as proof of delivery/service.

– What are the typical costs and fees for invoice finance?
Costs commonly include a finance/discount rate on funds drawn plus service or setup fees and any extras like credit insurance or transfer fees.

– Can I fund just one or a few invoices?
Yes—selective or spot invoice finance lets you fund individual invoices without committing to a full ledger facility.

– What happens if my customer doesn’t pay?
Recourse facilities leave you liable if a debtor doesn’t pay, while non-recourse with bad-debt protection can cover most of the risk at a higher cost.

– Is Fast Business Loans a lender and how do you help?
Fast Business Loans is a free introducer that matches your business to vetted invoice finance brokers and lenders, with no obligation to proceed.