Invoice Finance: Unlock Cash Flow with Trusted UK Lenders

Summary: Invoice finance helps UK limited companies release cash tied up in unpaid B2B invoices so they can pay suppliers, cover payroll or take on new orders. Fast Business Loans is a free introducer service that matches businesses (from £10,000 financing upwards) with the most suitable invoice finance lenders and brokers. Get a quick, no-obligation eligibility check and we’ll connect you with partners who can provide tailored quotes.

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What is invoice finance?

Invoice finance is a collective term for funding solutions that let a business access a portion of the value of its outstanding B2B invoices. Instead of waiting 30–120+ days for customers to pay, a business can receive most of the invoice value quickly and use the cash to manage operations or grow.

Common benefits include improved working capital, predictable cash flow and the ability to accept larger orders or extended payment terms. Invoice finance is typically best suited to companies that trade B2B, issue formal invoices and have clear debtor records. Any finance is subject to lender criteria and affordability checks.

Types of invoice finance

Invoice factoring

With invoice factoring a lender (the factor) buys or advances against your invoices and usually handles collections. The factor may take on credit control responsibilities which can save administration time but may affect how your customers perceive collections.

• Funding advance: typically 70–90% of invoice value initially.
• Pros: immediate cash, outsourced collections, can support rapid growth.
• Cons: customer-facing collections, fees and reserve holdbacks until invoices are settled.

Invoice discounting

Invoice discounting provides confidential funding where you retain control of collections. Lenders provide a secured facility using unpaid invoices as collateral. This option suits businesses that want to keep funding arrangements private from their customers.

• Funding advance: similar advance levels to factoring.
• Pros: confidentiality, you keep customer relationships and collections.
• Cons: requires stronger systems and compliance with lender covenants.

Selective / spot invoice finance

Selective finance lets you choose which invoices to fund — ideal for testing the product, funding one large debtor or supporting a seasonal spike. Fees can be higher per-transaction but it offers flexibility without a long-term facility commitment.

Quick comparison — when each fits:

• Factoring: businesses wanting administrative relief and regular advances.
• Discounting: companies needing confidentiality and control.
• Selective: firms needing one-off or occasional invoice cash releases.

Is invoice finance right for your business?

Invoice finance can be a strong solution where unpaid invoices are a recurring drain on liquidity. Typical suitability factors include:

• Business type: B2B companies issuing commercial invoices to reputable businesses.
• Turnover and scale: providers generally consider businesses needing finance from around £10,000 upwards.
• Debtor quality: stronger, diversified debtor ledgers typically secure better terms.
• Trading history and accounting: lenders look for reliable bookkeeping and systems to support facility monitoring.

Typical eligibility checks

• Company information and trading history
• Sample invoices and debtor list
• Recent management accounts and bank statements
• Customer creditworthiness

Costs & considerations

Costs vary by product and provider and usually include a discount/finance charge, service fees and possible setup or administration costs. Consider:

• Effective cost vs. alternative funding
• Impact on customer relationships if collections are outsourced
• Operational integration (accounting software, reporting)
• Contract length and termination terms

All proposals are subject to lender assessment and the terms they offer. Fast Business Loans helps you compare these without obligation.

Industries & use cases we support

We connect businesses across many sectors to invoice finance partners who know their industry. Common examples:

• Manufacturing — fund materials and production while waiting for payment.
• Logistics & distribution — cover fuel, wages and fleet costs between invoices.
• Recruitment — bridge time between placing candidates and client payment.
• Professional services (B2B) — maintain cash flow while delivering client projects.
• Wholesale & retail suppliers — purchase stock ahead of seasonal demand.
• Construction subcontractors — manage long payment cycles on project invoices.

Use cases: payroll cover, buying bulk stock, supporting growth, smoothing uneven cash flows, or enabling longer client payment terms to win new business.

How Fast Business Loans helps

We don’t lend. We match. Our goal is to make finding invoice finance fast and straightforward so you can compare real offers from lenders and brokers without wasting time.

1. Quick enquiry: complete a short form with basic business and invoice details — it takes a couple of minutes. Free Eligibility Check
2. Targeted match: we connect your request to the lenders or brokers best suited to your sector and finance need.
3. Rapid response: matched partners typically contact you by phone or email to discuss options and request documentation.
4. Compare & decide: review quotes, ask questions and choose the offer that fits — there’s no obligation to proceed.

We only share your details with relevant, approved partners and emphasise data security and privacy. Submitting an enquiry does not affect your credit score; lenders may run checks later if you apply.

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Why businesses choose us for invoice finance

Fast Business Loans saves time and increases the chance of finding a competitive solution by matching you with specialists who understand your sector. Key advantages:

• Speed — reach relevant lenders quickly without searching multiple panels.
• Sector expertise — we match you to partners experienced with your industry.
• No obligation — comparing quotes is free and optional.
• Transparency — we explain the introducer role clearly: we don’t lend and we don’t provide regulated advice; we introduce you to providers who do.
• Suitable scale — we focus on facilities from around £10,000 upwards.

Your details are only shared with partners able to help and who agree to treat your enquiry fairly. There are no hidden fees for using our matching service.

Case snapshot

Midlands Manufacturer — the challenge: a Midlands manufacturing firm won a large contract requiring upfront material purchases but was waiting 60 days for milestone payments. Using selective invoice finance introduced via Fast Business Loans, they unlocked £150,000 against a cluster of invoices within five working days. The facility covered materials and temporary labour, enabling them to fulfil the contract and deliver on time. The business later converted to a longer-term invoice discounting facility once volume stabilised.

Invoice Finance FAQs

What’s the difference between factoring and discounting?

Factoring usually involves a third party managing collections and may be visible to your customers. Discounting is a confidential facility where your business keeps control of collections while using invoices as security.

How quickly could funds be available?

Times vary by provider and paperwork, but funds can often be advanced within a few business days of an agreement. Spot funding for a single invoice can be faster.

Will applying affect my credit score?

Making an initial enquiry through Fast Business Loans will not affect your credit score. Lenders may perform checks if you proceed to a formal application.

Are there minimum turnover or invoice size requirements?

Requirements vary by lender. Many providers work with facilities from around £10,000 upwards; some have minimum debtor or invoice size thresholds. We match you to partners that fit your scale.

What documents do lenders usually request?

Typical requests include company registration details, recent management accounts, bank statements, a debtor ledger and copies of sample invoices and purchase orders.

What happens if a customer doesn’t pay?

The outcome depends on the product and your agreement. Under non-recourse factoring some credit losses may be covered by the factor; under most discounting facilities the business retains liability. Your matched broker or lender will explain options and protections.

Can start-ups use invoice finance?

Newer businesses can be eligible if they supply creditworthy B2B customers and can provide the necessary documentation. Each lender has different minimum criteria.

How do fees work?

Fees typically include a funding/discount rate applied to invoice value and administration or service charges. Rates depend on debtor risk, sector, facility type and volume.

Ready to unlock cash flow?

If unpaid invoices are holding your business back, start with a quick eligibility check. Complete our short enquiry and we’ll match you with invoice finance brokers and lenders who can provide tailored quotes — free and without obligation.

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Learn more about invoice finance products and when they might suit your business on our detailed guide to invoice finance.

Your enquiry is handled securely and only shared with appropriate finance partners. You are free to accept or decline any offers — Fast Business Loans simply connects you to potential providers so you can make an informed decision.

Important: Fast Business Loans is an introducer that connects businesses with lenders and brokers. We do not provide loans nor regulated financial advice. Any finance is subject to the provider’s assessment of your circumstances, status and affordability. No obligation to proceed. Offers, eligibility and timescales vary by lender.

1) What is invoice finance and how does it work? Answer: It lets UK B2B companies unlock around 70–90% of unpaid invoice value as immediate cash, with the balance (minus fees) released when the customer pays.

2) What types of invoice finance are available (factoring, discounting, selective)? Answer: Options include invoice factoring (disclosed, lender manages collections), invoice discounting (confidential, you collect), and selective/spot finance (fund chosen invoices only).

3) How quickly could funds be available? Answer: After matching and document review, funds are often released within a few working days, with spot deals sometimes faster.

4) Will submitting an enquiry through Fast Business Loans affect my credit score? Answer: No—our free eligibility check is not a credit application, though lenders may run checks if you proceed.

5) What does invoice finance cost? Answer: Pricing usually combines a discount/funding rate with service or admin fees that vary by sector, debtor quality, volume, and facility type.

6) What are the eligibility criteria and minimums? Answer: Lenders typically look for UK B2B invoicing, creditworthy debtors, reliable records, and facilities from around £10,000 upwards, subject to status and affordability.

7) What documents do lenders usually request? Answer: Expect company details, recent management accounts, bank statements, a debtor ledger, and sample invoices or purchase orders.

8) Can start-ups use invoice finance? Answer: Yes—if you invoice reputable B2B customers and can supply the required documents, some providers will consider you.

9) What happens if a customer doesn’t pay? Answer: Under non-recourse factoring some bad debts may be covered, while most discounting facilities leave the payment risk with your business per the agreement.

10) Is there any obligation or fee to use Fast Business Loans, and how do you help? Answer: Our service is free and no-obligation—we’re an introducer that securely matches your enquiry (not an application) to suitable UK lenders and brokers so you can compare tailored quotes.