Invoice Finance for UK Businesses — Unlock Cash Flow Fast

Summary: Invoice finance helps UK businesses access cash tied up in unpaid invoices, typically advancing 70–95% of invoice value so you can pay suppliers, staff and grow without waiting for customer payments. Fast Business Loans does not lend money; we match limited companies and SMEs (loans from around £10,000) with specialist invoice finance providers and brokers. Our free enquiry is not an application — it simply helps us find the best partners for your business. Start with a Free Eligibility Check to get matched today: Free Eligibility Check.

What Is Invoice Finance and When Does It Work Best?

Invoice finance is a working capital solution that converts outstanding B2B invoices into immediate cash. Instead of waiting 30, 60 or 90+ days for customers to pay, your business receives an advance against approved invoices. This is ideal when sales are growing quickly, customers take long to pay, or you need funds to bridge payroll, stock or supplier payments.

Invoice finance is not the same as taking a business loan: it’s secured against invoices (your sales ledger) rather than the company’s future earnings or director guarantees. That said, it’s a structured finance product and providers will assess your debtors and trading patterns.

The Core Question We Answer for You

Can invoice finance improve your cash flow quickly and flexibly without adding unsecured debt? We help you answer that by matching your company to lenders or brokers who specialise in your industry and debtor profile.

How Invoice Finance Works — Step-by-Step

1. Raise an invoice: You deliver goods or services and invoice your customer as normal.
2. Get an advance: The provider advances typically 70–95% of the invoice value to your business — often within 24–48 hours after approval.
3. Customer pays the invoice: Your customer pays the invoice to the provider or to you, depending on the product type.
4. Balance released: Once the invoice is collected, the provider pays the remaining balance minus fees.

Enquiring about invoice finance does not affect your credit file — it’s how we match you to the right partners. Ready to see what you could unlock? Free Eligibility Check.

Invoice Factoring vs Invoice Discounting vs Selective Finance

Each solution has trade-offs: factoring provides operational help, discounting keeps arrangements confidential, and selective options let you finance high-value or strategic invoices only.

Key Benefits of Invoice Finance for SMEs

• Immediate access to cash tied up in invoices — improves liquidity quickly.
• Scales with sales — funding grows as your invoiced sales increase.
• Bridges seasonal gaps and smooths payroll or supplier payments.
• Factor providers can offer credit control and debtor protection options.
• Helps maintain supplier relationships and take advantage of early payment discounts.

Potential Risks and Considerations

• Fees and rates: Costs vary by provider — compare discount rates, service fees and setup charges.
• Customer relationships: Factoring involves provider contact with your customers — consider confidentiality preferences.
• Eligibility: Providers assess debtor creditworthiness; invoices to high-risk customers may be excluded.
• Recourse vs non-recourse: With recourse finance you may need to repay advances if customers don’t pay; non-recourse can be pricier.

Always check terms and ask providers about hidden fees or early termination costs before proceeding.

Are You Eligible? Typical Criteria Our Partners Look For

While requirements vary, common criteria include:

• Registered UK limited company or incorporated business (we do not arrange finance for sole traders or professions).
• Minimum invoice values and annual turnover — many partners prefer turnovers from around £50k–£100k, with typical minimum facilities from £10,000 upward.
• Invoices issued to creditworthy B2B customers (public sector, large corporates or financially stable SMEs).
• Trading history — most providers like at least 6–12 months of trading, though selective deals exist for newer companies.
• Invoice terms usually under 120 days for straightforward facilities.

Documents to Have Ready

• Recent aged debtor listing (aged invoices ledger)
• Sample invoices and customer contracts
• Company accounts or management accounts (12–24 months where available)
• Details of directors and beneficial owners

Have these ready to speed up the matching process — then Get a Quote Now.

Cost Structure and Fee Transparency

Invoice finance fees typically involve:

• Advance/discount rate: A percentage charged against the value of invoices (e.g. 0.5%–3% per month depending on debtor risk).
• Service fees: Monthly platform or administration fees.
• Arrangement/setup fees: One-off on-boarding charges (sometimes waived).

Example: For a £100,000 invoice with a 90% advance and a 1% monthly discount rate, an initial advance of £90,000 may be received; the discount fee on the advance would be charged and the remaining balance paid when the invoice is collected (after fees).

Fees differ widely — completing our short enquiry lets us match you with providers who can give transparent, tailored quotes.

Invoice Finance Compared with Other Fast Funding Options

How it stacks up:

• Business Loan: Fixed term loan provides lump sum; invoice finance grows with sales and is tied to invoices.
• Overdraft: Revolving credit but can be withdrawn; invoice finance is secured against receivables and often more stable.
• Merchant Cash Advance: Repayments linked to card takings; can be expensive and inflexible vs invoice finance which is linked to sales ledger.

How Fast Business Loans Connects You With the Right Provider

Our process is fast and simple:

1. Quick Enquiry: You complete a short, free form (takes under 2 minutes).
2. Smart Match: We match your profile to lenders and brokers specialising in invoice finance for your sector.
3. Rapid Response: Matched partners contact you with quotes and next steps — usually within hours.
4. Choose and Proceed: Compare offers and proceed directly with the provider you choose. There’s no obligation to accept any quote.

We’re an introducer — not a lender — and our service is free for businesses. Ready to see your options? Start Your Free Eligibility Check.

Industries We Commonly Support With Invoice Finance

We frequently match businesses in these sectors:

• Construction & Trades: Fund materials and staged projects despite long payment cycles.
• Manufacturing & Engineering: Bridge cash for raw materials and export orders.
• Recruitment & Staffing: Cover payroll while waiting on client invoices.
• Logistics & Distribution: Smooth fleet, fuel and warehousing costs during growth.
• Professional Services & B2B Suppliers: Maintain cash flow between client billing and receipt.

Real-World Scenarios: When Invoice Finance Makes Sense

FAQs About Invoice Finance (UK)

Will my customers know I’m using invoice finance?

Factoring usually involves notifying customers because the provider manages collections. Discounting can be kept confidential so customers continue to pay you directly.

What’s the minimum invoice value or facility size?

Many providers work from facilities of around £10,000 and upward. Minimum invoice values vary by lender.

Can I finance international invoices?

Yes — many providers can finance export invoices, though fees and eligibility will depend on the buyer’s location and credit risk.

What happens if a customer doesn’t pay?

With recourse finance you may need to repay the advance if an invoice becomes irrecoverable. Non-recourse options provide bad debt protection but can be more expensive. Check each provider’s terms.

How quickly can I access funds?

Once approved, many providers can release funds within 24–48 hours, subject to checks and onboarding.

Does enquiring affect my credit score?

No — your free enquiry is not an application and does not affect your credit file. Lenders may run checks later if you choose to proceed.

Getting Started — Fast, Free, No Obligation

If invoices are slowing your growth, invoice finance may be the practical, scalable solution you need. Fast Business Loans will match your business to specialist lenders and brokers who understand your sector and debtor profile. Complete a simple enquiry (takes under 2 minutes) and receive tailored responses from partners who can help.

Free Eligibility Check — Get Matched Today

Please note: Fast Business Loans introduces businesses to lenders and brokers and does not provide loans or regulated financial advice. All finance is subject to lender assessment and terms.

Want to read more?

Learn about detailed invoice finance options and features on our pillar guide to invoice finance.

– What is invoice finance and how does it work?
Invoice finance lets UK SMEs unlock 70–95% of the value of approved B2B invoices for immediate cash flow, with the remaining balance paid on collection minus fees.

– How quickly can I get funds through invoice finance?
After approval and onboarding, many providers release cash within 24–48 hours.

– How much of my invoice value can I advance?
Typically 70–95% depending on your customers’ credit quality, sector and provider assessment.

– What’s the difference between invoice factoring and invoice discounting?
Factoring involves the provider managing collections and notifying customers, whereas discounting is confidential and you retain credit control.

– Will my customers know I’m using invoice finance?
Usually yes with factoring, but no with confidential invoice discounting.

– Am I eligible for invoice finance as a UK business?
Providers commonly look for a UK limited company invoicing creditworthy B2B customers, with around £50k–£100k+ turnover, 6–12 months’ trading, and invoice terms under 120 days.

– What’s the minimum facility size for invoice finance?
Many partners offer facilities from around £10,000 upward, with minimum invoice values varying by lender.

– What does invoice finance cost in the UK?
Expect a discount rate of roughly 0.5%–3% per month on funds advanced plus service and setup fees, all varying by provider and risk.

– Can I finance selected or international invoices?
Yes—selective/spot facilities and export invoices may be supported subject to provider criteria and buyer creditworthiness.

– How does Fast Business Loans help, and does the Free Eligibility Check affect my credit score?
Fast Business Loans is an introducer that matches you to specialist invoice finance providers via a free, no‑obligation enquiry that does not affect your credit score.