Invoice Finance for UK Businesses: Unlock Cashflow Fast

Summary: Invoice finance lets UK limited companies and LLPs unlock cash tied up in unpaid B2B invoices. Fast Business Loans is a free, no-obligation introducer that matches your business with specialist lenders and brokers for facilities from £10,000 upwards. Complete a short enquiry to get personalised matches and fast responses from experts who understand your sector. Start with a Free Eligibility Check → Get Started – Free Eligibility Check.

What is Invoice Finance?

Invoice finance is a set of products that let businesses access cash tied up in unpaid B2B invoices. Rather than waiting 30–120 days for customer payment, a finance provider advances a percentage of the invoice value, improving working capital and enabling smoother operations.

Key formats:

• Factoring – the factor advances cash and can manage collections and credit control.
• Invoice discounting – a confidential advance against invoices while you retain control of collections.
• Selective (spot) factoring – finance for individual invoices as required, not the whole book.

Typical outcome: release of up to 80–95% of invoice value quickly (subject to provider terms). Ready to check eligibility? Free Eligibility Check

How Our Free Invoice Finance Matching Service Works

Here’s how Fast Business Loans helps you find the right invoice finance solution — quickly and without obligation.

Step 1 – Tell Us About Your Business

Complete a short enquiry telling us your company details, turnover, debtor profile and the funding you need. This takes around 2 minutes.

Step 2 – We Match You With Specialist Brokers & Lenders

We use your details to match you with one or more finance partners who specialise in your sector and the size of facility you need.

Step 3 – Compare Offers Without Obligation

Brokers or lenders will contact you to discuss options and provide indicative pricing. Compare offers and choose what’s best — you’re under no obligation to proceed.

Get Quote Now — fast introductions and no-obligation options.

Fast Business Loans does not lend. We introduce businesses to lenders and brokers based on the information you provide.

Invoice Finance Solutions Available Through Our Network

We can introduce a range of structures so you can pick the one that fits your operational and confidentiality needs.

Invoice Factoring

Best when you prefer to outsource collections and improve cash flow quickly. Factors typically advance a high percentage of the invoice and provide credit control services — ideal for businesses that want administrative relief as well as funding.

Invoice Discounting

A confidential facility that keeps your customer relationships and collections in-house while releasing working capital. Good for established businesses with professional debtor management.

Selective / Spot Factoring

Use on a case-by-case basis — perfect if you only need finance for a few large invoices rather than the entire book.

Construction & Contract Finance

Specialist facilities that handle staged payments, retention releases and applications unique to the construction supply chain.

Learn more about invoice finance options and how they compare by speaking to our team — Start Your Enquiry.

For further in-depth explanation on invoice-based facilities, see our pillar guide to invoice finance.

Why UK Businesses Use Invoice Finance

Invoice finance is a practical way to unlock growth and stabilise operations. Typical benefits include:

• Bridge cash flow gaps caused by long payment terms (30–90+ days).
• Scale funding automatically as turnover and invoices grow.
• Protect against late payments and reduce reliance on overdrafts.
• Support payroll and supplier payments during growth spurts.
• Option to outsource credit control with factoring.

Invoice Finance vs. Overdrafts or Loans

Quick comparison:

Want to see if invoice finance suits your plans? Free Eligibility Check

Industries & Business Profiles We Commonly Support

We commonly introduce invoice finance to limited companies and LLPs operating B2B across sectors such as:

• Manufacturing, wholesale and distribution
• Construction and contractors
• Logistics and transport
• Recruitment and temporary staffing
• Healthcare and professional services (B2B clients)

Typical client profile: annual turnover from around £250k up to £50m+, businesses with a clear debtor ledger who need facilities from £10,000 upwards.

Example vignette: A recruitment agency facing a monthly payroll peak used selective factoring to draw cash against key client invoices and met payroll without taking on longer-term debt.

Match Me With Specialist Brokers

Eligibility Criteria & Typical Requirements

While exact requirements vary by lender, common factors include:

• Trading history and company structure (UK limited companies and LLPs)
• Quality and concentration of your debtor book
• Debtor creditworthiness and invoice dispute rates
• Minimum invoice values — many providers have thresholds
• Security or personal guarantees may be required in some cases

Invoice Finance Snapshot:

Find out which lenders fit your profile — Get Started.

Understanding the Costs of Invoice Finance

Costs vary by product and provider. Typical components include:

• Discount rate / service fee — a percentage charged on the invoice value for the service.
• Interest — on the advanced funds until repayment.
• Arrangement & admin fees — one-off or ongoing platform charges.
• Additional services — credit checks, bad debt protection, or credit control services.

Pricing depends on debtor quality, sector risk and facility type. We recommend requesting personalised cost illustrations from matched brokers so you can compare transparently.

Request personalised cost illustrations – Free Quote

How to Prepare for an Invoice Finance Discussion

To speed up the process, have the following ready:

• Latest management accounts and bank statements
• Aged debtor report and sample invoices
• Customer contracts, terms and proof of delivery
• Details of any disputed invoices and your dispute handling process

Accurate debtor data helps brokers run faster assessments. Ready to proceed? Start Your Enquiry

From Enquiry to Funds: What to Expect

• Day 0: Submit our short enquiry (approx. 2 minutes).
• Day 1–2: Broker or lender introductions and an initial call.
• Day 3–7: Indicative offers and due diligence requests.
• Day 7–14: Contracting, facility set-up and first drawdown (times will vary by provider complexity).

Need funds urgently? Indicate urgency on your enquiry and we’ll prioritise fast-responding partners. Get Started Today

Frequently Asked Questions

Is invoice finance the same as a loan?

No. Invoice finance advances cash against unpaid invoices rather than lending a set sum that you repay with interest over time. Repayments are generally tied to when your customers pay.

Will my customers know I’m using invoice finance?

Not always. Factoring is often disclosed, while invoice discounting can be confidential depending on the provider and contract.

Can start-ups access invoice finance?

Some start-ups can if they have a reliable debtor book and credit-worthy customers. Eligibility depends on turnover, debtor profile and provider appetite.

How much of the invoice value can I release?

Advance rates vary but commonly range from 60% to 95% depending on invoice age, sector and debtor credit quality.

Will the enquiry affect our credit score?

Submitting an enquiry through Fast Business Loans does not impact your company credit score. Lenders may perform credit searches later if you proceed with an application.

What happens if a customer doesn’t pay?

Terms depend on the facility: some providers offer bad debt protection, while others pass the recoverability risk back to you. This is an important point to discuss with any broker or lender we introduce.

Still have questions? Request a Call Back

Ready to Explore Your Invoice Finance Options?

Invoice finance can be a powerful tool to stabilise cash flow, support growth and free management bandwidth. Fast Business Loans helps you find the right partners fast — we’re free to use and there’s no obligation when you complete an enquiry. Facilities are typically available from £10,000 upwards and tailored to your debtor book and sector.

Start Your Free Eligibility Check

If you’d rather talk first, request a quick call via the enquiry form and we’ll arrange an introduction to a specialist broker who understands your industry.

Compliance & Disclaimer: Fast Business Loans is an introducer that connects businesses with lenders and brokers. We do not provide loans or financial advice. Eligibility and funding are subject to assessment by the lender or broker and may be subject to status, terms and conditions. Submitting an enquiry does not affect your credit score. Fees, rates and security requirements vary by provider.

1) What is invoice finance and how does it work?
Invoice finance lets UK limited companies and LLPs unlock cash tied up in unpaid B2B invoices by advancing typically 60–95% of the invoice value, which is repaid when your customer pays.

2) How fast can I get funds with invoice finance?
You’ll usually hear from matched brokers within hours of our free enquiry, and once a facility is set up funds can be released in 24–72 hours.

3) Is my enquiry a loan application and will it affect my credit score?
No—our short enquiry is not an application and won’t impact your credit score; lenders may run checks only if you choose to proceed.

4) Are you a lender, and how does Fast Business Loans help?
Fast Business Loans is an introducer, not a lender, and we connect you for free with specialist UK brokers and lenders suited to your sector and facility size.

5) What facility sizes and advance rates are typical?
Facilities commonly start from around £10,000 and can scale to several million, with advance rates typically between 60% and 95% depending on debtor quality.

6) What’s the difference between factoring, invoice discounting and selective (spot) factoring?
Factoring is usually disclosed and includes collections support, invoice discounting is confidential with you handling collections, and selective factoring finances chosen invoices only.

7) Who is eligible—can start-ups qualify?
Eligibility focuses on UK limited companies or LLPs trading B2B with creditworthy debtors, and some start-ups can qualify if they have a reliable debtor book.

8) Will my customers know I’m using invoice finance?
Factoring is typically disclosed to customers, while invoice discounting is designed to be confidential.

9) What documents should I prepare to speed things up?
Have management accounts, bank statements, an aged debtor report, sample invoices, customer contracts/POs and proof of delivery ready.

10) What are the costs and is security required?
Costs usually include a service/discount fee, interest on advanced funds and any arrangement/admin fees, and some providers may require security or personal guarantees with optional bad debt protection available.