Invoice Finance for UK Businesses: Unlock Cash Flow Fast

Summary: Invoice finance (including invoice factoring and invoice discounting) helps UK limited companies release cash tied up in unpaid customer invoices so they can manage payroll, buy stock, or grow. Fast Business Loans does not lend — we introduce businesses (loans from £10,000+) to carefully selected brokers and lenders who offer invoice finance. Complete a short enquiry for a Free Eligibility Check and we’ll match you to providers who understand your sector. This is a no‑obligation service and initial enquiries do not affect your credit score.

What is invoice finance & how it works

Invoice finance is a way for businesses to unlock cash tied up in unpaid customer invoices. Instead of waiting 30–120 days for customers to pay, a lender or factoring house advances most of the invoice value immediately. That working capital can be used to smooth cash flow, pay suppliers or scale operations.

There are different ways invoice finance is arranged; the two main approaches are factoring and discounting (explained below). Facilities can be whole‑ledger (covering all your invoices) or selective (only chosen invoices). Advance rates, fees and collection arrangements vary by provider and your customers’ creditworthiness.

Invoice factoring vs invoice discounting

Understanding the difference will help you choose the right facility.

• Invoice factoring – The factor advances a large portion of each invoice (commonly 70–90%). The factor often manages collections and credit control. Factoring can be visible (your customers know) and is useful for businesses that need outsourced debtor management.
• Invoice discounting – You keep responsibility for collecting invoices. The facility is usually confidential: customers continue to pay you directly. Discounting suits businesses that want to retain control over customer relationships.

Is invoice finance right for your business?

Invoice finance is commonly used by limited companies with B2B sales and unpaid invoices. It can suit businesses that:

• Supply other businesses and face long payment terms (30–120 days).
• Have a regular pipeline of invoices and predictable turnover.
• Need working capital quickly to fulfil orders, hire staff, or cover seasonal peaks.

It may not be suitable if:

• Your customers are predominantly consumers (B2C) rather than businesses.
• You have very low invoice volumes or extremely small ticket sizes under facility minimums.
• Your business relationship with customers would be harmed by third‑party collections (if using visible factoring).

Free Eligibility Check — tell us a few details and we’ll match you to lenders and brokers who specialise in invoice finance.

Advantages & watch‑outs (balanced view)

Key benefits

• Improve cash flow quickly — release funds tied up in unpaid invoices.
• Scale funding with sales — facilities can grow as your invoicing increases.
• Access to expertise — brokers and lenders often provide credit control support and industry insight.
• Faster than many other finance routes — some providers can release funds within 24–48 hours once approved.

Considerations & risks

• Fees and discount rates vary — ensure you understand ongoing charges and how they’re calculated.
• Debtor concentration risk — if your invoices are to a few large customers, lenders may apply restrictions.
• Customer relationships — visible factoring changes how your customers are contacted about payments.
• Contract terms — some facilities have notice periods or minimum terms.

Always review terms carefully. Fast Business Loans introduces you to providers who will explain the costs and implications in detail.

How Fast Business Loans matches you with the right invoice finance partner

Our role is to introduce your business to brokers and lenders that best fit your sector and invoice profile. We follow a simple, transparent 4‑step process:

1. Complete a short enquiry — a few business details, typical invoice values and the funding amount (it takes under 2 minutes). Start Your Enquiry.
2. Smart matching — we match you to a small panel of providers who specialise in your sector and facility type.
3. Rapid response — matched brokers or lenders contact you to discuss suitability, indicative costs and next steps. Initial contact is usually within hours during business days.
4. Compare & decide — review offers directly with providers and choose the one that best suits your needs. There’s no obligation to proceed.

We are an introducer, not a lender, and our service is free. If you’d like tailored options, Get Quotes Now.

Eligibility criteria & what lenders usually ask for

Typical requirements for invoice finance include:

• UK limited company trading with business customers (B2B).
• Minimum monthly invoice volume or turnover (varies by provider — from tens of thousands upward; facilities usually start at c.£10,000+).
• Trading history — many providers prefer at least 6–12 months of trading, though some specialist lenders consider younger businesses with strong contracts.

Documentation commonly requested:

• List of debtors / aged debtor report.
• Recent management accounts and bank statements.
• Company registration documents and director ID.
• Copies of invoices and contracts with customers.

Initial enquiries are non‑binding and will not affect your credit file. Any credit checks are performed by brokers or lenders with your consent during underwriting.

Costs, fees & typical advance rates explained

Fees vary between providers and depend on sector risk, debtor profile and facility structure. Typical elements include:

• Advance rate — the percentage of invoice value released upfront (commonly 70–95%).
• Discount or service fee — charged on the invoice value while it’s outstanding (expressed as a percentage or margin).
• Service fees — monthly account keeping or admin fees.
• Setup fees — one‑off onboarding or legal costs (not always applicable).

Example: a provider may advance 85% of an invoice immediately and charge a discount fee of 0.5%–2% per month until the invoice is paid. Exact pricing depends on your circumstances — matched brokers/lenders will provide transparent quotes once they assess your business.

Note: We do not publish or compare live rate tables on site — matched partners will discuss fees and terms directly with you.

Industries we commonly help unlock working capital

Our panel includes providers that specialise in a wide range of UK sectors. Common sectors include:

• Construction — long payment cycles between subcontractors and main contractors.
• Manufacturing & Engineering — funding for raw materials and expansion while awaiting customer payment.
• Logistics & Haulage — immediate cash for fleet, fuel and payroll.
• Recruitment & Labour Hire — cover payroll while waiting for client invoices to clear.
• Wholesale & Distribution — turn stock into cash and fulfil larger orders.
• Technology & B2B Services — smooth revenue timing between project delivery and invoicing.

If your sector isn’t listed, tell us about it — we work with lenders who serve many specialist industries. Get Started Free Eligibility Check.

Case study snapshot

Example (illustrative only): A UK manufacturer with £250k tied up in invoices agreed a whole‑ledger factoring facility. The factor advanced 85% of invoice value, releasing £212,500 immediately. The business used the cash to buy raw materials and hire temporary staff, fulfilling a large order and increasing monthly turnover. Outcomes vary and this is only an example.

Getting started: what happens after you submit an enquiry

After you complete the short enquiry form, here’s what to expect:

• We review the details and match you with a small number of appropriate brokers/lenders.
• Matched partners contact you (phone or email) to request any missing information and provide indicative terms.
• If you want to proceed, partners will carry out due diligence and formal underwriting — timeline depends on the facility and documentation supplied (some approvals can be achieved within 24–72 hours).

We handle introductions only. All offers and contracts come from the lenders/brokers you’re connected to. Start Your Enquiry and one of our partners will be in touch.

Invoice finance FAQs

What types of invoice finance can I access?

Through our panel you can be introduced to providers offering invoice factoring, invoice discounting, selective invoice finance and whole‑ledger facilities. The right product depends on your sector and customer profile.

How quickly could funds be released once approved?

Some providers can release funds within 24–48 hours of approval. The full onboarding timeline depends on paperwork, legal checks and the facility type.

Will applying affect my credit score?

No — completing our initial enquiry does not affect your credit file. Lenders or brokers may perform credit checks later with your consent as part of underwriting.

What’s the minimum turnover or invoice volume required?

Minimums vary by provider. Many facilities suit businesses with recurring invoice volumes from around several thousands per month upwards, and our introductions typically focus on facilities for sums of £10,000 and above.

Can I use invoice finance alongside other funding?

Yes — many businesses combine invoice finance with other options such as asset finance or overdrafts. Discuss combined structures with the matched provider.

What happens if a customer doesn’t pay?

Providers have different processes for disputed or overdue invoices. Factoring providers often manage collections and may require reserves or indemnities. Your matched provider will explain default procedures during onboarding.

How do I start?

Complete our short enquiry form to get matched — Free Eligibility Check.

Ready to unlock cash from unpaid invoices?

Fast Business Loans connects your company to invoice finance brokers and lenders who understand your industry — quickly and with no obligation. Tell us a few details and we’ll match you to the best providers for your needs. Get Quote Now.

Fast Business Loans is an introducer, not a lender or financial adviser. We connect businesses with third‑party brokers and lenders who provide finance products directly.

/invoice-finance

– What is invoice finance and how does it work?
Invoice finance lets UK businesses unlock cash tied up in unpaid B2B invoices by receiving an immediate advance (often 70–95%) from a lender or factor, repaid when the customer pays.

– What’s the difference between invoice factoring and invoice discounting?
Factoring typically advances most of the invoice and manages collections visibly to your customers, while confidential invoice discounting lets you collect payments yourself and keep control of customer relationships.

– Am I eligible for invoice finance as a UK business?
You’re usually eligible if you’re a UK limited company selling to other businesses with regular invoice volumes (facilities from around £10,000+), and ideally 6–12 months’ trading, subject to debtor quality and basic documents like an aged debtor report.

– What’s the minimum turnover or facility size required?
Minimums vary by provider, but many start around several thousand in monthly invoices with facility sizes typically £10,000 and above.

– How quickly can I receive funds from my invoices?
Once approved and onboarded, some providers can release funds within 24–48 hours.

– What advance rate can I get against my unpaid invoices?
Typical advance rates range from 70% to 95% depending on your sector, customer creditworthiness and facility structure.

– What are the costs and fees for invoice finance?
Pricing usually combines a discount/service fee charged while the invoice is outstanding plus any account or setup fees, with exact costs quoted by the matched broker or lender after assessment.

– Will my customers know I’m using invoice finance?
With invoice factoring your customers often know because the factor handles collections, whereas invoice discounting is usually confidential.

– What happens if a customer doesn’t pay an invoice?
Processes differ by provider, but factors may manage collections, hold reserves or require indemnities, and recourse/non‑recourse terms are explained during onboarding.

– How do I start and will my enquiry affect my credit score?
Start by completing our Free Eligibility Check—Fast Business Loans is an introducer (not a lender), your enquiry isn’t an application, carries no obligation, and won’t affect your credit score.