What is invoice finance?

Invoice finance is a way for businesses to unlock the cash value of invoices owed by your customers. Instead of waiting 30–120 days for payment, a lender or broker advances a percentage of the invoice value up front. When the customer pays, the lender releases the remaining balance minus fees.

Typical flow:

1. You raise an invoice to a B2B customer.
2. You submit or make the invoice visible to the funder.
3. The funder advances a portion (commonly 70–90%) of the invoice value.
4. When the customer pays, the funder returns the balance less fees and interest.

Invoice finance is most effective where you have predictable, trade‑credit customers and invoices of value — Fast Business Loans commonly helps businesses seeking facilities for £10,000 and up.

Types of invoice finance explained

Invoice factoring

With factoring, the funder typically takes responsibility for debtor collections and the customer is usually informed. Factoring can suit businesses wanting to outsource credit control or who need rapid access to working capital.

Invoice discounting

Discounting is usually confidential: your business retains debtor control and customers may not be notified. This option suits businesses that want to preserve customer relationships and keep financing activities discreet.

Selective / spot factoring

Spot or selective factoring allows you to sell single invoices or batches rather than the whole ledger. It’s flexible for one‑off cash flow events or seasonal spikes.

Quick comparison

If you’d like to explore solutions tailored to your sector, start with a Free Eligibility Check or read a detailed guide on invoice finance to learn the differences in depth.

Is invoice finance right for your business?

Invoice finance often fits companies that:

• Operate on B2B credit terms (30–120 days)
• Have growing order books but limited cash on hand
• Need predictable working capital without fixed long‑term debt
• Trade with creditworthy, verifiable customers

Industries that commonly benefit include construction, logistics, wholesale and manufacturing — but many sectors can use invoice finance effectively. If you’re unsure, complete our Free Eligibility Check and we’ll match you to suitable partners for a no‑obligation discussion.

Benefits vs considerations

Always review terms carefully. Fast Business Loans helps you compare options so you understand likely implications before proceeding.

How much does invoice finance cost?

Costs typically include an advance fee (discount rate or factor fee), plus service or admin charges. Pricing depends on:

• Debtor creditworthiness
• Industry risk
• Facility size and structure (confidential vs disclosed)

Illustrative example — not an offer

Invoice: £50,000 | Advance 85% = £42,500 paid on drawdown. Factor fee 1.5% of invoice = £750. When debtor pays, remainder = £7,500 – £750 fee = £6,750 returned to you.

Actual costs will be quoted by lenders/brokers after a review. Request personalised fee ranges via our Free Eligibility Check.

Eligibility criteria & documents

Typical eligibility (varies by lender):

• UK limited company or LLP (we do not handle sole trader situations)
• Minimum facility requests often £10,000 or above
• Sales to B2B customers with credit terms
• Evidence of trading history and debtor ledger quality

Common documents lenders request:

• Recent aged debtor report
• Copies of outstanding invoices
• Company accounts or management accounts
• Bank statements and proof of identity for directors/partners

Submitting an enquiry is a soft, non‑credit‑search information step — it is not a formal application and typically does not affect your credit file.

How Fast Business Loans matches you with lenders

Our process is simple, fast and transparent:

1. Enquiry: You complete a short form with business details and funding need — takes around 2 minutes. Get Quote Now.
2. Match: We compare your request across our panel and select lenders/brokers with sector experience and suitable products.
3. Response: Partners contact you with tailored quotes or follow‑up questions (usually within one business day).
4. Decide: You review the offers and proceed directly with the chosen provider — there’s no obligation to accept any quote.

We act as an introducer — we don’t lend or advise on which product to choose. Our value is saving you time and increasing your chances of a good match.

Start Your Enquiry

Industries we commonly support with invoice finance

We regularly help businesses across:

• Construction & trades
• Manufacturing & engineering
• Wholesale & distribution
• Logistics & transport
• Food & beverage wholesale
• Professional practices with B2B clients (companies/LLPs)

If your sector isn’t listed, still enquire — our partners cover many specialist niches and will advise whether invoice finance is appropriate.

Realistic use cases & outcomes

Case A — Building contractor

Challenge: A contractor had large monthly certified applications but 60–90 day payment cycles, causing cash strain for payroll and materials.

Solution: Confidential invoice discounting facility advanced 85% of invoice value. Outcome: Regular cash flow to meet payroll and buy materials; avoided short‑term overdraft fees.

Case B — Food wholesaler (seasonal stock)

Challenge: Need to buy stock ahead of seasonal orders while awaiting customer payments.

Solution: Selective factoring on large post‑season invoices to bridge the gap. Outcome: Stock purchased early, sales fulfilled on time and working capital maintained.

Figures and outcomes vary by lender and business circumstances. These examples are illustrative and not guarantees of result.

Invoice finance vs other cash flow solutions

Each option has pros and cons. Use our Free Eligibility Check to see which solutions lenders consider for your needs.

Free Eligibility Check: what to expect next

When you submit an enquiry we:

• Quickly review your details and match to relevant partners;
• Share your information only with selected lenders/brokers likely to help;
• Usually receive a contact within one business day (often faster during office hours).

This enquiry is informational only — it is not an application and generally does not trigger a hard credit search. Complete the short form now: Get Started — Free Eligibility Check.

FAQs about invoice finance

How quickly can I access funds once approved?

Timing varies by lender and documentation, but funds are often advanced within 24–72 hours of formal approval and the first approved invoices being submitted. Exact times depend on KYC, account set‑up and customer verification.

Will my customers know I’m using invoice finance?

With factoring customers are usually notified because the funder handles collections. With confidential invoice discounting customers typically are not informed. Your choice of structure affects notification; discuss preferences with your matched broker/lender.

Does invoice finance affect my existing bank facilities?

It can — some banks require notification if you use invoice finance, and facilities may need to be restructured. Always disclose existing agreements to potential funders and seek clarity before signing.

What happens if my customer doesn’t pay?

Responses depend on whether your facility is recourse or non‑recourse. In recourse facilities you may be asked to repay advances for unpaid invoices; in non‑recourse the funder accepts some credit risk but fees are typically higher. Lenders assess debtor risk before offering terms.

Is single‑invoice finance available?

Yes — selective or spot factoring lets you finance individual invoices rather than the entire ledger. It’s useful for one‑off cash needs or testing a funder relationship.

Will enquiring impact my credit score?

No — submitting an initial enquiry through Fast Business Loans is a soft, information‑gathering step and does not typically involve a hard credit search. Lenders may perform checks later in the formal application process.

For further questions, start a short enquiry and a matched broker will call to discuss specifics: Get Quote Now.

Ready to unlock cash flow?

Invoice finance is a practical way for many UK companies to improve cash flow and support growth. Fast Business Loans will match your business with lenders and brokers who understand your sector and needs. Our service is free and there’s no obligation to proceed after you receive quotes.

Get Started — Free Eligibility Check

Disclaimer: Fast Business Loans introduces businesses to lenders and brokers — we are not a lender and do not provide regulated financial advice. Any finance is subject to status, affordability and individual lender assessment. Figures and examples on this page are illustrative only. We will share your enquiry with selected finance partners relevant to your request.