Invoice Finance for UK Businesses: Compare Options & Get Matched Fast

Unlock cash tied up in unpaid invoices quickly. Fast Business Loans helps growing UK limited companies access invoice funding from specialist brokers and lenders — free, no obligation, and with no impact on your credit score for the initial enquiry.

• Free enquiry and rapid lender matching
• No obligation — use results to compare offers
• Experienced brokers and specialist lenders across sectors

Start Your Free Eligibility Check

We introduce you to lenders and brokers; we do not lend. Enquiries are used to match your business with providers that best fit your needs. Typical facilities start from around £10,000 and upward.

Table of Contents

• Quick Answer
• What is Invoice Finance?
• Key Benefits & Considerations
• Is Invoice Finance Right for Your Business?
• Compare Invoice Finance Solutions
• Typical Costs & Fees
• How Fast Business Loans Matches You
• Eligibility & Documents
• Sector Spotlights
• Illustrative Scenarios
• Getting Started
• Additional Resources
• FAQs
• Compliance & Disclosure

Quick Answer — How Does Invoice Finance Work & How Can Fast Business Loans Help?

Invoice finance lets businesses release cash tied up in unpaid B2B invoices. A provider advances a proportion of the invoice value (typically 70–90%) so you can meet payroll, buy stock or cover unexpected costs without waiting 30–120 days for customer payment.

How Fast Business Loans works:

1. Enquire — complete a short, no-obligation form (under 2 minutes).
2. Match — we connect you to brokers and lenders best suited to your sector and debtor profile.
3. Connect — chosen partners contact you with tailored options so you can compare terms and decide.

Get a no-obligation quote in under 2 minutes.

What Is Invoice Finance?

Invoice finance is an umbrella term for solutions that convert outstanding invoices into working capital. The two main forms are:

• Invoice factoring — the funder manages collections and may contact your customers. This includes full-service support (credit control).
• Invoice discounting — you retain control of collections; only your business knows the funder is involved (customer confidentiality option available with some providers).

Other variations include selective or single-invoice financing (funding an individual invoice) and export invoice finance for overseas debtors. There are also non-recourse options where the funder assumes bad debt risk — this is typically more expensive.

For a deeper guide to the mechanics and providers, see our pillar on invoice finance.

Key Benefits and Considerations

Why Businesses Use Invoice Finance

• Immediate cash flow: access 70–90% of invoice value within 24–48 hours.
• Scalable: facilities grow as your sales and debtor book grow.
• Bridge seasonal gaps, meet payroll and take on new orders without delay.
• Some providers offer credit protection, debtor management and improved cash forecasting.

Points to Consider

• Costs vary: arrangement fees, discount rates and service fees apply.
• Customer notification: factoring may involve informing your customers unless you choose confidential discounting.
• Concentration limits: high dependency on a small number of debtors can influence terms.
• Contract terms: minimum terms and termination notice periods are common — review these carefully with a broker.

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Which Businesses Benefit Most?

Invoice finance suits limited companies with regular B2B invoices and payment terms of 30–120 days. Typical candidates include wholesale, manufacturing, recruitment, staffing, construction supply chains and many service providers with outstanding invoices to creditworthy businesses.

• Turnover: commonly from around £500k+ though some providers consider lower turnovers if debtor quality is strong.
• Invoice values: recurring invoices or large single invoices can both be funded via selective or whole-book facilities.
• Growth & investment: use released cash to fulfil larger orders or invest in expansion without diluting ownership.

Quick tip: Recurring B2B invoices exceeding £50k/month often qualify for advance rates of 70–90% — ask our brokers for indicative advance rates in your sector.

Compare Invoice Finance Solutions

Choosing the right product depends on how much control you want over collections, whether you need credit protection and whether you prefer whole-of-book or selective funding.

Our broker partners cover the full range — we match you to those who specialise in your chosen approach. Get Quote Now.

Typical Costs, Fees and Contracts

Costs vary by sector, debtor quality and facility type. Typical charges include:

• Discount rate / interest: applied to the advanced amount while the invoice is outstanding.
• Service fee: a percentage of turnover or invoice value for administration and credit checks.
• Arrangement or set-up fee: one-off fee for facility establishment and audits.
• Reserve / retention: a small holdback released when invoices are paid.

Rates differ widely — submit an enquiry and our brokers will provide transparent, comparable fee estimates tailored to your circumstances. Request fee comparisons.

How Fast Business Loans Matches You with Invoice Finance Partners

1. Enquiry: you complete a short form with basic business and invoice details.
2. Review: our team and algorithm assess your needs and debtor profile.
3. Introduction: we connect you with 1–3 specialist brokers/lenders who can offer relevant solutions.
4. Decision: you review proposals, negotiate terms with chosen partner and proceed if satisfied.

Our service is free to businesses and there’s no obligation to accept an offer. We handle initial matching and ensure partners understand your objectives. Data is shared only with parties that can provide an appropriate quote.

Invoice Finance Eligibility & What Lenders Look For

Common lender requirements:

• Registered UK limited company trading history (often 12+ months preferred).
• Consistent B2B debtor book with invoices to credible businesses.
• Minimum facility sizes usually from around £10,000 upward.
• Management accounts, aged debtor list, and copy invoices or contracts.

Typical documents to prepare:

• Aged debtor list (by value and customer)
• Most recent management accounts and bank statements
• Signed customer contracts or purchase orders
• Company information (registration, directors)

Submit Your Details — We’ll Handle the Rest

Sector-Specific Invoice Finance Examples

Construction & Trade Contractors

Progress payments and staged billing can be turned into immediate working capital to pay subcontractors and suppliers — useful where payments are held for certification or retention periods.

Manufacturing & Wholesale

Release cash to fund raw materials for large orders or to bridge export receivables. Many brokers specialise in export debt and multi-currency invoices.

Agencies, Recruitment & Professional Services

Recruitment firms often use invoice finance to meet payroll ahead of client payments. Agencies and consultancies can smooth cash flow between client billing cycles.

Illustrative Scenarios from Broker Partners

Examples are illustrative; individual terms vary by provider and business circumstances.

What Happens After You Enquire?

Expect a rapid initial response — often within hours during business days. Brokers will request supporting documents, complete due diligence and present indicative terms. From enquiry to funded facility can range from days (for single-invoice or selective funding) to a few weeks for whole-book facilities.

Get Started — Free Enquiry

Helpful Resources & Next Steps

• FCA guidance on commercial finance (informational)
• Alternative funding options (on this site)
• Privacy policy — how we handle your data

Bookmark this page and return when you’re ready to compare quotes from our broker panel.

Invoice Finance FAQs

Is invoice finance a loan?

Not strictly. Invoice finance is an advance against unpaid invoices. Some providers structure facilities as credit lines; others treat them as financing arrangements. The accounting treatment depends on the provider and contract.

How fast can funds be released?

For single invoices or selective funding, funds can be advanced within 24–48 hours once documentation is complete. Whole-book facilities may take longer for set-up and audits.

Will my customers know?

With factoring, customers are typically notified. Invoice discounting can be confidential so customers continue to pay you directly — discuss confidentiality options with brokers.

Can start-ups use invoice finance?

Newer companies may qualify if they have a strong debtor book backed by reliable customers. Many funders prefer some trading history, but specialist brokers can identify suitable options.

What happens if a customer doesn’t pay?

Treatment depends on the contract: with non-recourse facilities the funder may absorb the bad debt risk (at higher cost). With recourse facilities, the business may need to repay advances for unpaid invoices.

Are there minimum or maximum facility sizes?

Minimums typically start around £10,000 in funded advances. Facilities can scale into millions for larger corporates — broker matching will indicate providers for your size.

How does invoice finance affect my balance sheet?

Accountancy treatment varies. Some facilities are recorded as borrowing, others as a sale of receivables. Consult your accountant or the introduced broker for guidance.

Can I exit an existing facility?

Yes, though you should review termination clauses and any notice periods. Brokers can assist with switching providers if better terms are available.

Compliance & Disclosure

Fast Business Loans is an introducer connecting businesses with lenders and brokers. We do not lend or provide regulated financial advice. Completing our enquiry is free, non-obligatory and does not affect your credit score. We only share your details with partners who can provide an appropriate quote. See our privacy policy and terms for more information.

Start Your Free Eligibility Check

– What is invoice finance and how does it work?
Invoice finance lets UK businesses unlock 70–90% of the value of unpaid B2B invoices upfront—via factoring or discounting—with the balance paid on settlement minus fees.

– What’s the difference between invoice factoring and invoice discounting?
Invoice factoring includes outsourced credit control with customer notification, while invoice discounting advances cash but you keep collections and it can be confidential.

– How fast can my business get cash from unpaid invoices?
Selective or single-invoice finance can fund in 24–48 hours once documents are complete, while whole-book facilities may take a few days to a few weeks to set up.

– Will submitting an enquiry affect my credit score?
No—Fast Business Loans’ free eligibility check is non-obligatory and doesn’t impact your credit score, with any credit checks only occurring if you proceed with a provider.

– Am I eligible for invoice finance and what do providers look for?
UK limited companies with regular B2B invoices (often 12+ months trading) and creditworthy debtors typically qualify, with facilities usually starting from around £10,000.

– What documents do I need for invoice finance?
You’ll usually need an aged debtor list, recent management accounts and bank statements, copies of invoices or contracts, and basic company and director details.

– What are the typical costs and fees for invoice finance?
Common charges include a discount/interest rate on the advanced amount, a service fee, an arrangement/set-up fee, and a small retention released when invoices are paid.

– Can I fund a single invoice or keep invoice finance confidential from customers?
Yes—selective or single-invoice finance is available, and confidential invoice discounting lets you retain collections without notifying customers.

– What happens if a customer doesn’t pay an invoice?
With non-recourse invoice finance the funder may absorb bad-debt risk (at a higher cost), while with recourse facilities you’re responsible for repaying advances on unpaid invoices.

– How does Fast Business Loans help me compare invoice finance providers?
Complete a 2-minute free enquiry and we’ll match you with 1–3 specialist UK brokers or lenders so you can compare tailored invoice finance quotes with no obligation—we’re an introducer, not a lender.