Invoice Finance: Unlock Cash from Your Invoices — Fast

Summary: Invoice finance helps limited companies release cash tied up in unpaid B2B invoices so you can pay suppliers, meet payroll and grow. Fast Business Loans doesn’t lend — we match UK businesses with lenders and brokers who offer invoice factoring, invoice discounting and selective solutions. Use our free, no-obligation enquiry to get a tailored match and rapid responses from providers. Get Started

What is Invoice Finance?

Invoice finance is a form of working capital that turns unpaid B2B invoices into immediate cash. Instead of waiting 30–120 days for customers to pay, a provider advances most of the invoice value up front and releases the balance (less fees) when payment arrives. There are different models — factoring, discounting and selective/spot finance — each suited to different businesses and preferences. Fast Business Loans helps you understand options and connects you to lenders or brokers who specialise in your sector. Free Eligibility Check

Invoice Factoring Explained

Factoring means the provider typically manages your sales ledger and collections. You receive an advance (often 70–90%) and the factor handles debtor chasing and credit control. This is helpful if you want outsourced collections support or lack internal resource. Because the factor may interact with your customers, this model is often chosen by firms comfortable with customers being notified.

Invoice Discounting Explained

Invoice discounting advances funds against invoices while you retain control of collections. The arrangement is confidential, so your customers usually don’t know. Discounting suits businesses with strong in-house credit control that want to keep the relationship with their customers private.

Selective & Spot Invoice Finance

Selective (or spot) finance lets you choose particular invoices to fund rather than your entire ledger. This offers flexibility for seasonal peaks, one-off contracts or new customers. It’s ideal where only specific invoices need advancing.

How Invoice Finance Works — End to End

1. Issue an invoice to a business customer as normal.
2. Submit the invoice to the finance provider or broker.
3. The provider advances a percentage of the invoice value (e.g., 80%).
4. When the customer pays, the remainder is released to you, minus fees.

Typical timeline: onboarding can take several days; once set up many providers advance against new invoices within 24–72 hours. Submitting an enquiry via Fast Business Loans is not an application and will not affect your credit score. Get Quote Now

Is Invoice Finance Right for Your Business?

Invoice finance works best for limited companies that:

• Sell B2B with payment terms of 30–120 days
• Have a steady flow of invoices and predictable debtor ledgers
• Need working capital of £10,000 and above
• Are scaling quickly or managing seasonal demand

Industries that commonly use invoice finance: construction contractors, manufacturers, recruitment firms, logistics and transport, wholesale and distribution, professional services to corporate clients. If you’re unsure whether it fits your situation, submit a quick enquiry and we’ll match you with a lender or broker who can advise. Free Eligibility Check

Benefits and Considerations

Always compare offers — fees, advance rates and service levels vary. Fast Business Loans connects you to multiple partners to help you compare before committing. Get Quote Now

Understanding Costs & Fees

Typical charges include:

• Advance fee / discount fee — applied to the value advanced
• Service fee — monthly or per-invoice for account management
• Interest on drawn balances (rare on pure factoring)
• Onboarding and exit fees (check terms)

These are illustrative figures. Actual costs vary by sector, debtor credit quality and provider. Our matched lenders provide detailed term sheets once they assess your files. Get Quote Now

Invoice Finance vs Other Cashflow Options

Combining products is common — e.g., invoice finance for working capital and asset finance to buy machinery.

Eligibility Checklist & Documents

Typical eligibility criteria:

• Limited company trading for 6–12+ months (exceptions exist)
• Minimum invoice values and B2B invoices
• Customers with a trackable payment history

Documents lenders usually request: aged debtor report, management accounts, recent bank statements, copies of invoices, company information and ID for directors (for AML checks). The enquiry form collects high-level info; matched partners request full documents later.

How Fast Business Loans Matches You with Providers

Our simple four-step process:

1. Complete a short enquiry (takes minutes).
2. We match you to lenders/brokers suited to your industry and invoice profile.
3. Matched partners contact you with next steps and indicative terms.
4. Compare offers, choose a provider and proceed to their application.

Our service is free and no-obligation. We only share your details with partners relevant to your request. Free Eligibility Check

Real-World Scenarios from Our Network

Example 1 — Recruitment agency: Short-term payroll pressure during growth. Invoice factoring provided an 85% advance, covering wages while the agency placed contractors.

Example 2 — Construction supplier: Large purchases for a contract created cashstrain. Selective invoice finance advanced payment on specific project invoices to complete the job and retain margins.

Outcomes commonly reported by our matches: faster supplier payments, improved cash conversion cycles and the ability to accept bigger contracts.

Invoice Finance FAQs

How quickly could my business receive funds?

Once a provider has completed onboarding, many release the initial advance within 24–72 hours for approved invoices. The first facility setup often takes longer for due diligence and checks.

Will my customers know about the facility?

With invoice factoring customers are usually notified because the factor handles collections. With confidential invoice discounting the arrangement is typically private. We pass your preference to matched lenders.

What happens if my customer pays late?

If a debtor pays late, the provider retains the advance until payment is received; fees may increase. Some providers include debtor insurance or offer protection for certain debtor default scenarios—ask your matched partner for exact cover details.

Can start-ups use invoice finance?

Some lenders accept newer businesses if your customers are large, creditworthy organisations. Selective and spot finance providers are often flexible — we’ll match you accordingly.

Does applying affect my credit score?

Submitting a non-binding enquiry through Fast Business Loans will not affect your credit rating. Lenders may carry out checks later if you proceed to full application.

What’s the minimum invoice size?

Minimums vary by provider; some accept small invoices from £500, while others require larger values. Typical facility sizes start from around £10,000 of monthly invoice value.

Important Information & Disclaimers

Fast Business Loans is an introducer and connection service — we do not lend and we do not provide regulated financial advice. Matching and introductions are free and no obligation. We encourage you to review lender terms carefully; there are no guarantees of approval or specific rates. Enquiry via our form is not an application and does not affect your credit score. When you proceed with a lender or broker they may perform identity and credit checks as required by their processes. Your information is shared only with relevant finance partners selected for your enquiry.

Ready to Unlock Cashflow?

Get matched to invoice finance lenders and brokers who understand your sector. What happens after you click Start:

• Complete a short enquiry (2 minutes).
• We match you with the best-suited partners.
• Receive rapid quotes and compare options — no pressure to proceed.

Get Started today for a free, no-obligation eligibility check and see which invoice finance options might be available to your business.

Want to read more about invoice finance options? See our detailed guide to invoice finance.

– Q: What is invoice finance and how does it work?
A: Invoice finance lets UK limited companies unlock cash tied up in unpaid B2B invoices by advancing around 70–90% upfront and releasing the balance, minus fees, when your customer pays.

– Q: What’s the difference between invoice factoring and invoice discounting?
A: Invoice factoring includes outsourced credit control with customer notification, while confidential invoice discounting leaves collections with you and keeps the facility private.

– Q: How quickly can I get funds from approved invoices?
A: After onboarding, many providers release up to 80–90% within 24–72 hours, with the initial setup taking a few days for due diligence.

– Q: Will my customers know I’m using invoice finance?
A: Factoring is usually disclosed to customers, whereas invoice discounting is typically confidential—tell us your preference and we’ll match accordingly.

– Q: How much does invoice finance cost in the UK?
A: Costs vary by provider and sector but usually include a discount/advance fee and a service fee, often totaling roughly 0.4%–1.5% of invoice value in the examples shown.

– Q: What are the typical eligibility requirements?
A: Most providers look for UK limited companies trading 6–12+ months with B2B invoices and a clear aged debtor ledger, though criteria vary by lender and sector.

– Q: Can start-ups or newer businesses use invoice finance?
A: Yes—some selective and spot providers work with newer companies if their customers are large, creditworthy organisations, and we can identify those lenders for you.

– Q: What documents will lenders ask for?
A: Expect to provide an aged debtor report, recent bank statements, management accounts, example invoices, company details, and director ID for AML checks.

– Q: Can I choose specific invoices to fund (selective or spot invoice finance)?
A: Yes—selective/spot facilities let you fund chosen invoices or contracts rather than your whole ledger, ideal for seasonal peaks or one‑off jobs.

– Q: Does submitting an enquiry with Fast Business Loans affect my credit score or count as an application?
A: No—our quick enquiry is free, no‑obligation and not a loan application, so it won’t affect your credit score; lenders may run checks only if you proceed.