Quick answer – Is invoice finance right for your business?

Short answer: invoice finance can be a fast, flexible way for limited companies to unlock cash tied up in unpaid B2B invoices. It suits businesses with approved customers, recurring invoices and working capital needs for growth, payroll or supplier payments.

• Typical advance: often 70–90% of invoice value on drawdown, subject to lender assessment.
• Speed: many facilities release funds within 24–72 hours after onboarding.
• Minimum facility size: we usually introduce facilities of around £10,000 and up.

Need a quick, no-obligation eligibility check? Get Started – Free Eligibility Check.

How invoice finance works

Step-by-step process

1. You raise a normal sales invoice to a creditworthy business customer.
2. You submit the invoice(s) to the invoice finance provider (or your broker does this on your behalf).
3. The provider advances a percentage of the invoice (the advance rate) into your business bank account.
4. When your customer pays the invoice, the provider returns the remaining balance minus fees.

What to expect from Fast Business Loans

We’re an introducer — not a lender. Tell us about your business through a short enquiry and we’ll match you to specialist lenders or brokers who understand your sector and debtor profile. Submitting an enquiry is not an application and won’t affect your credit score. If a lender wants to proceed they will explain checks and terms to you before any contract is signed.

Types of invoice finance we can introduce

Invoice factoring

Factoring means the provider takes responsibility for credit control and collections. Best for businesses that prefer outsourced debtor management or those with rapid growth.

• Advance rate: typically 70–90%.
• Fees: service/discount fee and possibly a setup fee.
• Pros: improves cash flow and reduces time spent chasing payments. Cons: customer-facing collections may change customer experience.

Invoice discounting

Discounting is usually confidential: your business retains control of collections and customers may not know you use a facility.

• Advance rate: commonly 70–90% depending on debtor quality.
• Fees: discount fee and arrangement or admin fees.
• Pros: confidential and keeps debtor relationships in-house. Cons: requires stronger internal credit control systems.

Selective or spot invoice finance

Selective facilities let you choose which invoices to fund. Ideal for companies that occasionally need a cash boost but don’t want a full facility.

• Advance rate and fees: variable and often slightly higher per-invoice due to flexibility.
• Pros: pay-as-you-go, lower commitment. Cons: may cost more per invoice than a long-term facility.

For a detailed overview of options and to compare what suits your business, see our full guide on invoice finance.

Who benefits most from invoice finance?

Invoice finance suits limited companies across many sectors where B2B invoices create cashflow gaps. Common industries we assist include:

• Construction – cover materials and labour while waiting for stage payments.
• Recruitment – bridge the period between paying contractors and receiving client invoices.
• Manufacturing & wholesale – smooth seasonal demand and supplier payments.
• Logistics & haulage – manage fleet costs and fuel while invoices are settled.
• Professional practices operating through limited companies (where suitable) – manage client billing cycles.

If your business invoices other businesses and needs faster access to cash, our partners may have a solution. Free Eligibility Check.

Eligibility factors & what lenders look for

Each lender has its own appetite, but typical criteria include:

• Business type: limited companies with B2B invoices (not sole traders).
• Minimum invoice and facility sizes: usually from around £10,000 in facility value upwards.
• Debtor quality: lenders assess the creditworthiness of your customers.
• Trading history and turnover: many lenders prefer some months of trading and a demonstrable turnover.
• Credit history: adverse credit doesn’t automatically exclude you, but it influences pricing and terms.

Remember: rates and terms vary by provider. Our role is to match your profile to lenders most likely to offer competitive terms and explain the likely checks before you apply.

Costs, fees and key terms explained

Invoice finance costs can include several elements. Below are the most common:

• Advance fee / discount rate: charged on the advanced portion of invoices (often expressed as a percentage per month).
• Service or management fee: covers administration and ongoing account management.
• Setup / due diligence fees: one-off charges when the facility is established.
• Reserve/retention: amount held back until customer payment — the balance is released after collection minus fees.
• Recourse vs non-recourse: recourse means your business remains liable if a customer doesn’t pay; non-recourse transfers some bad-debt risk to the provider but costs more.

Typical ranges vary widely; providers will explain exact costs during the quoting process. All introductions from Fast Business Loans are transparent: we’ll tell you what to expect before you proceed.

Invoice finance vs other working capital solutions

How invoice finance compares with common alternatives:

• Business overdraft: flexible but may have lower limits and less predictable pricing.
• Term business loan: fixed repayment schedule and often better for one-off capital purchases rather than ongoing cashflow.
• Asset finance: secures funding against equipment, not invoices.

If your main issue is cash tied up in unpaid invoices, invoice finance is often faster and more tailored than loans. Unsure which suits you? Get Quote Now and we’ll introduce you to partners who can compare multiple solutions.

How Fast Business Loans matches you with trusted partners

Our simple 4-step matching process:

1. Submit a short enquiry with basic company and invoice details.
2. We assess your requirements and match you to brokers or lenders on our panel who specialise in your sector.
3. Selected partners contact you to request documents, explain fees and provide quotes.
4. You review offers, ask questions, and choose the deal that suits you.

We only introduce you to providers that fit your needs; there’s no obligation and the initial check is free. Ready to unlock working capital? Start Your Enquiry.

Documents & information to prepare

Preparing these in advance speeds up quotes and onboarding:

• List of invoices or aged debtor report (who owes what and when invoices are due).
• Copies of the invoices you want to fund.
• Recent management accounts and bank statements (often last 3–6 months).
• Company registration details and ID for directors.
• Details of any existing finance agreements or security in place.

Tip: when you apply through Fast Business Loans you typically only supply documents once and we share them with relevant partners to speed decisions.

Frequently asked questions

How quickly can invoice finance release funds?

Many lenders can advance funds on approved invoices within 24–72 hours of onboarding. The overall process from contact to first drawdown typically takes a few days to a couple of weeks depending on checks.

Will using invoice finance affect my customer relationships?

Factoring may involve the provider dealing directly with your customers for collections — this can be positive if professional. Discounting is confidential so customers usually won’t know.

Can start-ups access invoice finance?

Businesses with a limited company structure may access selective or short-term invoice finance if they can demonstrate invoices to credit-worthy businesses. Lenders consider trading history and debtor quality.

Does invoice finance affect my balance sheet?

Accounting treatment varies by product and provider — some facilities appear as borrowings; others reduce receivables. Your accountant can explain the impact for your business.

What happens if a customer fails to pay?

If you have recourse finance, you remain liable for unpaid invoices. Non-recourse options shift some bad-debt risk to the provider but are typically more expensive and subject to terms.

Is my data secure with Fast Business Loans?

Yes. We share your information only with selected finance partners who may be able to help. Submitting an enquiry does not commit you to any product or affect your credit score.

Can I exit an invoice finance agreement early?

Exit terms vary. Many agreements have notice periods and potential termination fees. Your introducing broker or lender will outline exit terms before you sign.

Get started – Free eligibility check

Fast Business Loans makes it quick and simple to explore invoice finance options. Complete our short enquiry now — it’s free, confidential and not an application. We’ll match your company with lenders or brokers suited to your sector and invoice profile, and you’ll receive quotes directly from them.

Get a Free Eligibility Check

Fast Business Loans is an introducer and does not provide credit or financial advice. All finance is subject to status and approval by the lender; terms and conditions apply.