Invoice Finance for UK Businesses: Compare Options & Unlock Cashflow

Summary: Invoice finance helps businesses turn unpaid B2B invoices into working capital fast. Fast Business Loans is a free introducer that matches UK limited companies with lenders and brokers for invoice factoring, discounting and selective funding — typically for funding needs from £10,000 upwards. Complete a short enquiry and we’ll match you to specialist providers so you can compare quotes quickly. Free Eligibility Check

Is Invoice Finance Right for Your Business Right Now?

Invoice finance is typically the right choice when your business sells B2B and is waiting on payment for issued invoices. Consider invoice finance if you:

• Have unpaid invoices aged 30–120 days that are slowing growth or payroll.
• Sell primarily to creditworthy businesses or public-sector organisations.
• Want to fund growth, smooth seasonal cashflow, or finance a large contract without adding conventional debt to your balance sheet.
• Need funding from around £10,000 and upwards.

Benefits include faster cashflow, predictable working capital and the ability to scale without waiting for customer payments. Not sure? Get a Free Eligibility Check and we’ll match you with suitable providers — no obligation.

What Is Invoice Finance?

Invoice finance is a way to access funds tied up in unpaid invoices. Rather than waiting 30–120 days (or longer) for customers to pay, a funder advances most of the invoice value upfront. This is generally structured as:

• Invoice factoring: the funder may handle collections and credit control.
• Invoice discounting: confidential funding where you retain collections.

Invoice finance is an advance against your debtors rather than a traditional business loan. Terms, fees and structures vary between providers — that’s where Fast Business Loans helps by matching your business to lenders and brokers who specialise in your sector. Completing our short enquiry does not commit you to apply and does not affect your business credit score.

Want to dive deeper into invoice finance options and how they compare? Read more about invoice finance or start your Free Eligibility Check.

How Invoice Finance Works in Practice

Step-by-step funding journey

1. You issue an invoice to a qualifying B2B customer.
2. You or your broker submits debtor information and invoices to the funder.
3. The funder advances a percentage (commonly 70–90%) of the invoice value.
4. When the customer pays, the funder pays the remaining balance minus fees.
5. If the funder manages collections, they take responsibility for chasing payment under agreed terms.

Typical timeframes

Application and approval times depend on paperwork and debtor quality. Many businesses receive initial decisions in 24–72 hours and advances as soon as the facility is set up. Fast Business Loans’ partners aim to move quickly — submit our short form to be matched and contacted fast: Get Quote Now.

Types of Invoice Finance We Can Introduce

Invoice Factoring

Factoring is a full-service option where the funder advances most of the invoice and handles credit control and collections. Suitable for businesses that prefer to outsource debtor management.

Invoice Discounting

Discounting is confidential funding: you keep control of collections while borrowing against invoices. Good for businesses that want funding without notifying customers.

Selective / Spot Invoice Funding

Selective funding lets you fund individual invoices or batches rather than transferring your entire book. Useful for one-off cashflow needs or project-based businesses.

Recourse vs Non-Recourse

Recourse funding means you remain responsible if a debtor defaults. Non-recourse (or bad-debt protection) can limit that risk but usually costs more. We can introduce lenders offering both options depending on your needs.

Need help picking the right type? Get Started — Free Eligibility Check.

Eligibility, Application Checklist & What Lenders Look For

While each provider sets its own criteria, funders typically assess:

• Trading history and annual turnover.
• Quality of your debtors (creditworthiness and payment history).
• Debtor concentration — reliance on a single customer can be a risk.
• Contractual terms (are invoices undisputed and due in normal trade terms?).
• Company structure — we introduce funding for limited companies and similar entities (from £10,000 upwards).

Typical documents requested:

• Recent aged debtor ledger and sample invoices.
• Company accounts and management accounts.
• Customer contracts or purchase orders (if applicable).
• Proof of identity and address for directors (at later stages).

If you’ve been declined before, it’s still worth enquiring — different funders have different appetites. Check Eligibility and we’ll find the best match.

Costs, Fees & How to Compare Invoice Finance Deals

Common fees explained

• Discount/advance rate: percentage fee applied to the invoice value (often quoted as a weekly or monthly rate).
• Service fee: a percentage or fixed fee for administration and credit control (more typical with factoring).
• Set-up fee: one-off cost to open the facility.
• Other charges: client-notification fees, collection costs, or early termination fees.

How to compare offers:

• Ask providers for a clear worked example showing advance percentages and total fees on a typical invoice.
• Check contract length and notice periods.
• Confirm whether fees are fixed or variable and how they change with usage.

We’ll introduce you to lenders and brokers who provide full cost breakdowns so you can compare apples with apples. Compare Invoice Finance Quotes.

Real-World Use Cases Across UK Industries

Invoice finance is commonly used across many sectors to solve predictable cashflow issues:

• Construction: bridge payment cycles between progress billing and supplier payments.
• Manufacturing: fund materials and production while awaiting customer settlement.
• Logistics & Transport: maintain fleets and cover fuel and payroll during slower payment cycles.
• Professional services & B2B suppliers: smooth cashflow when clients are slow to pay.
• Wholesale & distribution: free up capital tied in stock and invoices to grow order volumes.

For targeted support, our panel includes specialist brokers experienced in sector-specific invoice funding solutions. Get Your Invoice Finance Quote.

Why Use Fast Business Loans for Invoice Finance?

• Speed: short enquiry form and fast matches to relevant providers.
• Specialist matching: we connect you to lenders/brokers who know your industry.
• No cost, no obligation: our introducer service is free to businesses.
• Confidential: your enquiry does not affect your credit score.

After you submit an enquiry we review your details, match you with up to a few relevant partners and those partners will contact you with quotes and next steps. Ready to start? Free Eligibility Check.

Our 4-Step Matching Process

1. Enquiry Form: complete a short form (under 2 minutes).
2. Match: we match your business to lenders/brokers with the right appetite.
3. Contact: matched partners will contact you to discuss terms and request documents.
4. Decide & fund: compare offers and proceed directly with the provider you choose.

We only share information with partners relevant to your request and handle data securely. Submitting a form is not an application and will not trigger a credit search.

Preparing for Conversations with Brokers & Lenders

To speed up the process, have the following ready:

• Sample invoices and aged debtor ledger.
• Recent management accounts or forecast showing funding need.
• Details of major customers and contract terms.
• A clear statement of how you intend to use funds (growth, payroll, supplier payments).

Ask potential funders about contract length, notice periods, advance rates, and collections handling to compare offers effectively.

Alternatives & Complementary Finance Options

If invoice finance isn’t the right fit in every case, other options include asset finance, short-term business loans or revolving credit facilities. Fast Business Loans can also introduce you to partners who offer those solutions — tell us what you need in the enquiry form and we’ll match you accordingly. Talk to us about the right finance mix.

Key Considerations, Risks & Responsible Use

• Understand recourse terms — in recourse funding you may have to repay if a debtor defaults.
• High debtor concentration can limit funding or raise fees.
• Review contract exit terms and notice periods to avoid unexpected costs.
• Invoice finance changes cashflow profiles — use responsibly and ensure affordability.

Fast Business Loans provides introductions only and does not give regulated financial advice. Always read provider terms carefully and seek independent advice if uncertain.

FAQ: Invoice Finance with Fast Business Loans

Is invoice finance a loan?

Invoice finance is an advance against unpaid invoices rather than a conventional loan. You receive a percentage of the invoice value up front, with the remaining balance paid once the customer settles, minus fees.

How fast can I access funds?

Many providers can approve facilities in days and release funds within 24–72 hours after setup. Timing depends on debtor quality and documentation. We’ll introduce you to partners who can move quickly.

Will my customers know I’m using factoring?

With factoring the funder often manages collections and customers may be notified. Discounting is typically confidential, so customers usually remain unaware.

How much of the invoice value can I advance?

Advance rates commonly range from 70% to 90% of the invoice value, depending on sector, debtor creditworthiness and the provider’s terms.

What happens if a customer doesn’t pay?

If you have recourse funding you may need to repay advances for unpaid invoices. Non-recourse options can offer bad-debt protection but are costlier.

Does submitting an enquiry affect my credit score?

No — completing our enquiry form does not affect your business credit score. Lenders may run credit checks only when you decide to proceed with an offer.

Ready to Unlock Cash Tied Up in Invoices?

Fast Business Loans makes it quick and simple to compare invoice finance options and find a partner that fits your business. Our service is free, no obligation, and designed to save you time and increase your chance of a suitable match. Submit a short enquiry now and we’ll connect you to lenders or brokers who may be able to help: Get Started — Free Eligibility Check.

– What is invoice finance and how does it work? It lets UK B2B companies unlock cash tied up in unpaid invoices by advancing around 70–90% now and the balance (minus fees) when the customer pays.

– Is invoice finance a loan? No—it’s an advance secured against your sales ledger rather than a conventional business loan.

– How quickly can I access funds? Many providers approve facilities in days and release cash within 24–72 hours once your facility is set up.

– Am I eligible for invoice finance? You’re typically eligible if you’re a UK limited company selling to creditworthy businesses on 30–120 day terms with a funding need from about £10,000 upwards.

– How much of each invoice can I advance? Advance rates commonly range from 70% to 90% depending on your sector, debtor quality and the provider’s terms.

– Will my customers be notified or will collections change? Factoring usually involves the funder handling collections and notifying customers, while invoice discounting is typically confidential and you keep control.

– How much does invoice finance cost? Pricing usually includes a discount/advance rate plus a service fee (for factoring), setup charges and any additional usage or exit fees.

– What happens if a debtor doesn’t pay? With recourse facilities you may need to repay the advance on unpaid invoices, whereas non-recourse options add bad‑debt protection at a higher cost.

– Does submitting a Fast Business Loans enquiry affect my credit score or commit me to apply? No—the enquiry is simply for matching, it doesn’t affect your credit score and there’s no obligation to proceed.

– Can I fund selected invoices only? Yes—selective or spot invoice finance lets you choose individual invoices or batches rather than your whole ledger.