Invoice Finance for UK Businesses

Summary: Invoice finance (factoring and discounting) lets UK companies unlock cash tied up in unpaid invoices so they can stabilise cash flow, pay staff and grow. Fast Business Loans is a free introducer that matches limited companies and SMEs (from around £10,000+) with specialist lenders and brokers. Complete a short enquiry — it’s not an application, it’s a way for us to match you with the right providers quickly and without obligation. Get Started – Free Eligibility Check.

Fast, Fair Introductions to Invoice Finance Specialists

When invoices are paid on long terms, working capital can become a bottleneck. Invoice finance converts outstanding sales invoices into immediate cash so you can operate without waiting 30–120+ days for payment.

Fast Business Loans does not lend. Our role is to gather a few details via a short enquiry and match your business with brokers and lenders best placed to help. The enquiry is quick, free and is not a loan application — it simply helps us recommend the most suitable partners. Free Eligibility Check

Quick note: We typically arrange facilities for limited companies and SMEs seeking funding from £10,000 upwards.

What Is Invoice Finance and How Does It Work?

Invoice finance is an umbrella term covering solutions that unlock the value of unpaid invoices. The two main types are invoice factoring and invoice discounting:

Typical mechanics:

• Upload or assign invoices to the facility.
• Lender advances a percentage (the advance rate) — often 70–90% — within 24–72 hours.
• When your customer pays, the facility releases the balance minus fees (discount/interest and service charges).

Fees vary by lender and risk profile: discount rates (a percentage of invoice value), facility fees, administration and onboarding charges. Specific terms are set by the lender you’re introduced to.

Who Uses Invoice Finance in the UK?

Invoice finance suits companies that invoice other businesses (B2B) and have cash tied up in receivables. Common sectors include:

• Construction and contractors
• Manufacturing and wholesalers
• Recruitment and staffing agencies
• Logistics, transport and distribution
• Professional services (limited companies)
• Retail and wholesale supplying trade customers

Because we match you with sector-aware partners, you’re more likely to be connected with lenders who understand industry-specific payment cycles. Check Your Eligibility in 2 Minutes.

Key Benefits of Invoice Finance for SMEs

Stabilise Cash Flow

Access funds tied up in invoices to cover payroll, supplier costs and routine expenses without new debt facilities or personal guarantees in some cases.

Bridge Long Payment Terms

If your customers take 60–120 days to pay, invoice finance shortens the cash gap so you can run the business day-to-day.

Support Growth & Tendering

Use freed-up working capital to accept larger contracts, invest in stock or scale up operations without waiting for payment runs.

Flexible Facility Options

Facilities can be tailored: whole ledger factoring, selective invoice finance, confidential discounting, and bad-debt protection options. Example scenario: a wholesaler uses selective factoring on seasonal invoices to meet demand peaks.

Invoice Finance Options We Can Help You Explore

Through our network you can explore:

• Whole ledger factoring (all invoices included)
• Selective (spot) invoice finance (choose invoices you want to fund)
• Confidential invoice discounting (customer confidentiality retained)
• Non-recourse factoring / bad-debt protection (where available)
• Digital platforms with upload/portal functionality and faster turnaround

Features to compare: advance rate, discount/interest rate, minimum fees, facility limits, contract length and reporting tools. Get Matched with Specialist Lenders.

Our 4-Step Enquiry Process

1. Complete a short enquiry form — it takes around 2 minutes. This is not an application and does not affect your credit score. Start Your Enquiry.
2. We match your submission to lenders/brokers who specialise in your sector and needs.
3. Partners contact you to discuss indicative terms, timescales and required documents.
4. Compare offers and proceed with the provider you choose — approval and contract terms are determined by the lender.

Costs, Eligibility and Documents You’ll Need

Typical Costs & Fees

• Discount or finance charge: expressed as a percentage of invoice value — example ranges 0.5%–2.5% per month (examples only — lender-dependent).
• Service/admin fees and minimum monthly charges.
• Onboarding and set-up fees in some cases.

These are example ranges only — actual rates are set by lenders based on your sector, debtor creditworthiness and facility type.

Eligibility Snapshot

• Your business should be a UK limited company or SME issuing invoices to other businesses.
• Typical minimum facility value: from around £10,000 upwards.
• Debtor quality matters — invoices to large, creditworthy companies often attract better terms.

Documents Commonly Requested

• Recent invoices and debtor ledger
• Company accounts / management accounts
• Bank statements
• Director ID and company registration details

Making an Informed Decision: Pros, Cons & Considerations

Before agreeing: confirm notice periods, confidentiality clauses, whether the facility is recourse or non-recourse, and how your customers will be contacted (if at all). Discuss these with your introduced broker/lender.

FAQs on Invoice Finance (UK)

Is Fast Business Loans a lender?

No. We introduce businesses to lenders and brokers. We do not provide finance ourselves and we do not give regulated financial advice.

How quickly can invoice finance release funds?

Once a lender has accepted invoices, advances can be provided within 24–72 hours, depending on the provider and onboarding speed.

Will invoice finance affect my client relationships?

With confidential discounting, clients are usually unaware. With factoring, the factor may contact customers — reputable providers handle this sensitively. Discuss communication preferences with your chosen provider.

Can start-ups qualify?

Newer limited companies may be eligible if they have creditworthy debtors or director guarantees; eligibility varies by provider.

What happens if my customer doesn’t pay?

That depends on whether your facility is recourse or non-recourse. In recourse facilities, the business remains responsible for unpaid invoices. Non-recourse or bad-debt protection may cover certain defaults — subject to terms.

Does my enquiry count as an application or affect my credit rating?

No — submitting our enquiry form is not a credit application and does not trigger a credit search. Lenders may perform checks later if you proceed.

What information is required in the enquiry form?

Basic business details, approximate annual turnover, type of invoice finance required and contact details. This lets us match you to suitable lenders quickly.

Related Business Finance Solutions

If invoice finance isn’t the right fit, our partners also offer other options: asset finance, cashflow loans and commercial loans. You can explore different routes when you Get a Quote Now.

For more detail on how invoice lending compares to similar tools, read our pillar guide to invoice finance.

Compliance & Disclosure

Fast Business Loans is an introducer, not a lender or financial adviser. Our service is free to businesses. We aim to be clear, fair and not misleading in line with industry guidance. When you submit an enquiry we will only share details with lenders and brokers who can assist your request. Data is handled in accordance with applicable data protection rules.

If you’re unsure which solution suits you best, complete our short enquiry and a specialist partner will contact you to explain options and likely costs — there’s no obligation to proceed. Start Your Free Eligibility Check.

Ready to explore invoice finance? Complete our short, free enquiry and we’ll match your business with specialist lenders and brokers who can provide quotes and next steps. It’s quick, confidential and not an application: Get Started – Free Eligibility Check.

– What is invoice finance and how does it work?
Invoice finance lets UK SMEs unlock typically 70–90% of the value of unpaid B2B invoices within 24–72 hours, with the balance released when customers pay minus fees.

– What’s the difference between invoice factoring and invoice discounting?
Factoring includes the provider managing your sales ledger and chasing payments, while confidential invoice discounting keeps collections with you so customers are usually unaware.

– How quickly can I get funds through invoice finance?
Once onboarding is complete and invoices are accepted, funds are commonly advanced within 24–72 hours by the lender.

– What are the typical costs of invoice finance?
Costs vary by lender but often include a discount/finance charge of around 0.5%–2.5% per month plus service, admin and possible setup fees.

– Who is eligible for invoice finance in the UK and what’s the minimum facility?
UK limited companies that invoice other businesses are typically eligible, with facilities from around £10,000+ and better terms for strong, creditworthy debtors.

– Will submitting an enquiry with Fast Business Loans affect my credit score?
No—our quick enquiry is not a loan application and does not trigger a credit search (lenders may check later if you proceed).

– Will my customers know I’m using invoice finance?
With confidential invoice discounting they’re usually unaware, whereas with factoring the provider may contact them in a professional, agreed manner.

– Can I fund only selected invoices or add bad-debt protection?
Yes—many partners offer selective (spot) invoice finance and optional non-recourse/bad-debt protection, subject to provider terms.

– What documents will I need to provide?
Lenders typically ask for recent invoices and debtor ledgers, bank statements, company/management accounts, and director ID/company registration details.

– Are you a lender, and is your service free and without obligation?
Fast Business Loans is an introducer (not a lender) and our eligibility check and introductions are free with no obligation to proceed.