Invoice Finance Solutions for UK Businesses

Summary: Invoice finance unlocks cash tied up in unpaid invoices so your business can pay staff, buy stock and grow. Fast Business Loans doesn’t lend money — we quickly match limited companies and incorporated businesses (loans and facilities from £10,000 upwards) with specialist lenders and brokers who provide invoice factoring, invoice discounting and tailored trade finance. Submit a free eligibility check to see what options you could access and get matched to the best providers for your sector.

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What is Invoice Finance?

Invoice finance is a way for businesses to convert outstanding invoices into immediate cash. Instead of waiting 30, 60 or 90+ days for customers to pay, a funder advances a large percentage of the invoice value so you can use the funds straight away.

Two common structures:

• Invoice factoring: the funder buys or takes control of your sales ledger and usually handles collections. Good if you want to outsource credit control.
• Invoice discounting: you keep responsibility for collections; the funder advances an agreed percentage while remaining confidential (undisclosed) if required.

Fast Business Loans is an introducer — we don’t provide finance directly. Our role is to match your business to lenders or brokers who specialise in invoice finance. Complete a short, no‑obligation enquiry and we’ll connect you to the providers most likely to help.

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Who Uses Invoice Finance & Why It Matters

Invoice finance is widely used by trading limited companies across sectors where sales are made on payment terms. It’s ideal for businesses that:

• Have significant sums tied in unpaid invoices
• Need predictable cash flow to pay staff, buy materials or invest in growth
• Are growing quickly and need working capital to fulfil larger orders
• Want to avoid expensive overdrafts or short-term loans

Typical users include manufacturers, wholesalers, logistics firms, recruitment agencies, professional services companies billing other businesses, construction suppliers and many B2B sellers.

Invoice Finance Options Explained

Invoice Factoring

Factoring means the funder manages your sales ledger and often takes responsibility for collections. You receive a high advance on invoices and the funder handles chasing customer payments.

• Pros: rapid access to cash, removed credit control burden, can help with bad debt management.
• Cons: customer-facing collections may be handled by the funder; costs can be higher than discounting.
• Best for: businesses that want to outsource collections or have limited internal credit control capacity.

Invoice Discounting

Discounting is a confidential facility where you retain control of customer relationships and collections. The funder advances a percentage of invoice value against your ledger.

• Pros: confidentiality, you keep customer-facing functions, often lower fees.
• Cons: requires stronger internal credit control and reporting; some funders set minimums.
• Best for: established businesses with strong credit control processes.

Selective / Spot Factoring

Buy-in for single invoices or selected customers rather than the whole ledger. Flexible and useful for seasonal spikes or one-off large invoices.

Construction & Project-Based Invoice Finance

Designed for staged payments, retention release and contract-based invoicing. Often combined with retentions finance or contract funding.

Trade & Export Invoice Finance

Options available for overseas invoices, multi-currency considerations and export credit protection.

How Much Can You Raise & What Does It Cost?

Advance rates commonly range from 70% up to 95% of the invoice value depending on the funder, industry, customer creditworthiness and whether the facility is disclosed or confidential.

Costs you should expect to see:

• Discount/interest fee: charged on advanced funds until the invoice is collected (often quoted as a percentage per annum).
• Service/management fee: regular fee for administration and account management.
• Setup or due diligence costs: some funders charge one-off onboarding fees.

Every case is unique — providers price based on your debtor book, concentration risk, customer profiles and contract terms. Fast Business Loans will match you to partners who can provide tailored quotes. There’s no cost to use our matching service.

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Example Scenarios

• Manufacturer with strong B2B customers: 85% advance, funds released within 24–48 hours, discount fee charged fortnightly.
• Recruitment agency with recurring invoices: confidential invoice discounting to preserve client relationships, lower service fees.
• Exporter billing in foreign currency: advance in sterling with FX support and export credit checks.

Eligibility & Requirements

Typical eligibility expectations from invoice finance lenders include:

• B2B invoices (invoicing other limited companies or corporates)
• Minimum facility sizes: most providers work with businesses seeking from around £10,000 and up
• Trading history: many funders prefer at least 6–12 months trading, but sector-specialist lenders can consider newer businesses
• Reasonably accurate debtor ledgers and limited levels of disputed invoices

Documents usually requested during assessment:

• Aged debtor report / sales ledger
• Recent management accounts and bank statements
• Copies of major customer contracts or purchase orders
• ID and company documents for directors and beneficial owners

Submitting an enquiry with Fast Business Loans is a no-obligation way to find out if invoice finance is suitable for your business — and it won’t affect your credit score.

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When Invoice Finance May Not Be Suitable

• Businesses with predominantly cash sales or consumer invoices
• High levels of disputed or unpaid invoices
• Very small or one-off invoice volumes below minimum facility thresholds

How Fast Business Loans Supports Your Application

We offer a four-step process designed to be fast and transparent:

1. Complete a short enquiry: details about your business, turnover, debtor profile and required facility size.
2. We match you: our system selects lenders and brokers that specialise in invoice finance for your sector.
3. Receive offers: matched partners contact you directly with indicative quotes and next steps.
4. Choose and proceed: you decide whether to proceed with the chosen provider — we do not pressure you to accept any offer.

Benefits of using our broker network:

• Speed — fewer forms and faster matches
• Choice — multiple options from lenders and brokers tailored to your sector
• Expertise — introductions to providers who understand your industry
• No upfront cost — our service is free to businesses

Get Started – Free Eligibility Check

Industries We Commonly Support with Invoice Finance

• Construction suppliers and subcontractors — manage staged payments and retentions
• Manufacturing & engineering — free up working capital for production
• Wholesale and distribution — fund inventory and large orders
• Logistics and transport — smooth seasonal cashflow
• Recruitment and professional B2B services — finance invoices while maintaining client relationships
• Hospitality and catering (B2B contracts) — cover supplier costs and payroll

For industry-specific invoice finance, see our specialist information about invoice finance options and how they apply in practice at our invoice finance resource.

invoice finance

Invoice Finance vs Other Funding Routes

When to choose invoice finance:

• You have a healthy pipeline of B2B invoices and need regular working capital.
• You want funding that grows with your sales — facility size often scales with your ledger.
• You prefer to avoid long-term secured debt against property or assets.

Step-by-Step – From Enquiry to Funding

1. Submit a short enquiry (under 2 minutes) with key business and invoice details — Start Your Enquiry.
2. We match you to suitable lenders/brokers and pass on your details securely.
3. A matched partner will typically contact you within hours to request the aged debtor report and supporting documents.
4. Once approved, funds are released against approved invoices — many providers can release funds within 24–48 hours.

What Happens After You’re Matched?

A lender or broker will discuss terms, required documentation and the funding timetable. If you accept an offer, you’ll be asked to complete the provider’s onboarding checks and supply debtor details. The provider manages administration and funds are advanced against invoices as agreed.

Start Your Enquiry – Takes Less Than 2 Minutes

Tips to Strengthen Your Invoice Finance Application

• Keep an up-to-date aged debtor ledger and highlight major customers.
• Resolve or clearly document any disputed invoices before applying.
• Limit customer concentration risk where possible — diversified debtor books are more attractive.
• Demonstrate consistent invoicing and good payment histories for your customers.
• Be transparent with documentation — accurate information speeds approvals.

Frequently Asked Questions

Ready to Unlock Cash Flow?

If unpaid invoices are holding your business back, invoice finance can free working capital quickly and flexibly. Fast Business Loans will connect you to lenders and brokers experienced in your sector so you can compare options and choose the right solution.

Get Started – Free Eligibility Check

Compliance & Transparency Statement

Fast Business Loans is an introducer that connects businesses to finance providers. We are not a lender and we do not provide financial advice. All finance is subject to status, terms and eligibility checks by the provider you ultimately choose. Our service is free to businesses; providers we introduce may pay us for introductions. Please read the provider’s full terms and privacy policy before proceeding. For details on how we handle your data, see our privacy policy and terms.

– What is invoice finance and how does it work? It lets UK businesses turn unpaid B2B invoices into immediate cash advances (typically 70–95%) so you can improve cash flow while the funder waits for customer payment.

– What’s the difference between invoice factoring and invoice discounting? Factoring usually means the funder manages collections and is disclosed to customers, while invoice discounting is typically confidential and you retain credit control.

– How quickly can I access funds? After approval and onboarding, many providers release funds within 24–48 hours against approved invoices.

– How much can I raise and what are the minimum facility sizes? Facilities commonly start from around £10,000 and scale with your sales ledger quality, sector and customer creditworthiness.

– What does invoice finance cost? Pricing usually includes a discount/interest fee on funds drawn plus a service fee and any setup costs, tailored to your debtor book and risk profile.

– Who is eligible for invoice finance? UK limited or incorporated businesses that invoice other businesses (B2B), have a reasonable trading history (often 6–12 months), and maintain a manageable debtor ledger are typically eligible.

– What documents will I need to provide? Expect an aged debtor/sales ledger, recent management accounts and bank statements, key customer contracts or POs, and director ID/company documents.

– Will my customers know I’m using invoice finance? With disclosed factoring they may interact with the funder, whereas invoice discounting can be confidential so customers are usually unaware.

– What happens if a customer doesn’t pay the invoice? Options vary by provider, but you can consider non-recourse/bad debt protection or standard facilities where you or the funder pursue recovery.

– Is the Fast Business Loans eligibility check an application and will it affect my credit score? No—it’s a free, no‑obligation enquiry used to match you with lenders/brokers and it won’t affect your credit score.