Invoice Finance for UK Businesses

Summary: Invoice finance converts unpaid invoices into immediate working capital. Fast Business Loans does not lend money — we match UK limited companies to specialist invoice finance lenders and brokers so you can get tailored quotes and a free eligibility check. Our introductions are no-obligation and suitable for facilities from around £10,000 upward. Ready to explore options? Complete a short enquiry at any time: Get Started — Free Eligibility Check.

What is invoice finance?

Invoice finance is a way to unlock cash tied up in invoices you’ve raised to business customers. Instead of waiting 30, 60 or 120 days for payment, a lender or factor advances most of the invoice value up front. The remaining balance (less fees) is released once your customer pays.

Fast Business Loans acts as an introducer — we don’t provide finance ourselves. We’ll match your company with lenders or brokers who specialise in invoice finance so you can compare facility types, costs and speed of funding.

How invoice finance works — step by step

1. Submit your invoice details

Start by telling us a few details about your business and invoices via our short enquiry form. This helps us identify suitable lenders in our panel.

2. Lender advances a percentage

The provider releases an advance — typically 70–90% of the invoice value — within 24–48 hours of approval. The exact percentage depends on the lender, sector and debtor creditworthiness.

3. Customer pays & balance settles

When your customer settles the invoice, the lender pays the remaining balance to you, minus any fees. If the facility is non-confidential, the lender may handle collections.

• Typical timeline: enquiry → match (hours) → due diligence (days) → funds released (24–48 hours after approval).
• Touchpoints: Fast Business Loans matches you → lender/broker contacts you → due diligence → offer.

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Types of invoice finance we can introduce

Invoice factoring

• Facility: factor buys or manages your sales ledger and often handles collections.
• Ideal for: businesses that prefer an outsourced credit-control function.
• Cash advance: typically 70–90% of invoice value.

Invoice discounting

• Facility: confidential funding where you retain control of collections and your customers are not notified.
• Ideal for: established businesses that prefer to manage debtor relationships in-house.
• Cash advance: typically similar advance rates to factoring but confidentiality can attract a small premium.

Selective / spot invoice finance

• Facility: fund individual invoices as needed rather than the whole ledger.
• Ideal for: businesses needing short-term help for occasional late-paying customers or one-off large invoices.

For more on how invoice finance compares to other cashflow options, see our detailed invoice finance guide: invoice finance.

Is invoice finance right for your business?

Invoice finance suits limited companies selling to other businesses (B2B) with unpaid invoices and predictable debtor profiles. It can be particularly useful where you:

• Have long payment terms (30–120 days).
• Need working capital to fulfil larger orders or seasonal demand.
• Want to avoid personal guarantees or secure borrowing against property — terms vary by lender.

Potential considerations

• Minimum facility sizes — many lenders start from around £10,000.
• Costs and fee structures differ; compare total effective charges.
• With factoring, customers may be aware you’re using an external finance provider.

Benefits of invoice finance

• Improves cash flow quickly so you can pay suppliers, staff and reinvest.
• Enables you to accept larger orders and grow without waiting for customer payments.
• Flexible — can grow with your sales ledger.
• Selective options let you fund specific invoices rather than your whole ledger.

Free Eligibility Check

Costs, fees & typical advance rates

Costs vary by lender and business risk. Typical elements include:

• Advance rate: 70–90% of invoice value (varies by lender and debtor creditworthiness).
• Discount or service fee: usually a percentage of the invoice value or a margin applied to the advance period.
• Additional fees: on-boarding fees, credit-control fees, administration or monthly facility fees.

Exact pricing is set by the lender or broker. When you request a quote via our enquiry form we’ll ask partners to supply clear cost breakdowns so you can compare like-for-like.

Eligibility & documents you’ll usually need

Common criteria

• Limited company trading history (many lenders prefer at least 6–12 months trading).
• Invoices issued to creditworthy UK businesses (B2B).
• Stable debtor profile without concentrations in a single weak payer.

Typical documentation

• Copies of recent invoices and the aged debtor ledger.
• Bank statements and management accounts.
• Proof of identity for directors (required at lender stage).

Note: Lenders may carry out credit checks once you decide to proceed. Submitting an enquiry through Fast Business Loans does not affect your credit score.

Industries we commonly support

We work with lenders and brokers experienced across many UK sectors, including construction, manufacturing, logistics, professional services, healthcare, hospitality and retail. If your business issues B2B invoices, invoice finance could be an effective solution — our partners have experience in sector-specific risk assessment and collections.

Why use Fast Business Loans for invoice finance introductions?

Specialist matching

We maintain a panel of lenders and brokers who specialise in invoice finance and sector-specific needs. That means you’re more likely to be matched to a provider who understands your trade and debtor base.

Transparent, no-obligation process

Our service is free to use and there’s no obligation to proceed after receiving offers. We provide clear next steps and help you compare provider quotes side-by-side.

Quick response & supportive experts

Complete our short enquiry and a matched lender or broker will typically contact you within hours to discuss options and next steps.

Match Me with Invoice Finance Lenders

How to get started today

1. Complete our short enquiry (under 2 minutes): Start Your Enquiry.
2. We curate matches from our lender/broker panel and introduce the most relevant partners.
3. Discuss tailored options with the lender or broker — receive fee schedules and timescales.
4. Decide with no obligation. You only proceed when you accept an offer from a lender/broker.

Our introductions are designed to save time and increase the likelihood of a good match. Facilities are available from around £10,000 upwards, depending on the provider.

Real-world example: invoice finance in action

A regional manufacturer had £120,000 tied up across 45 invoices with average 60-day terms. After a quick introduction through Fast Business Loans they were matched to a factoring broker. The facility advanced 85% of each invoice value, releasing approximately £102,000 in working capital within 48 hours of approval. The company used the funds to buy raw materials, accept new orders and avoid late-paying supplier penalties. Example results vary by business and lender assessment.

Invoice finance FAQs

How quickly can I access funds?

Many lenders release an advance within 24–48 hours of final approval; initial due diligence is the main timing factor.

Will my customers know I’m using invoice finance?

With factoring, often yes. With invoice discounting, typically no. We’ll help you compare confidential and non-confidential options.

Do start-ups qualify?

Some lenders consider new businesses that issue invoices to creditworthy firms, but minimum requirements vary. We’ll match your case to suitable partners.

What if a customer doesn’t pay?

Terms differ: recourse facilities make you responsible for unpaid invoices; non-recourse facilities shift some risk to the lender. Always review contract terms before agreeing.

Does applying affect my credit score?

Submitting our enquiry does not affect your credit score. Lenders may perform checks later if you proceed.

Important information & disclaimers

Fast Business Loans is an introducer that connects UK businesses with lenders and brokers. We do not lend and we do not provide financial advice — all lending decisions and final terms are made by the lender or broker. Fees, advance rates and eligibility are set by the lending partner. Please assess suitability carefully and consider independent advice if unsure.

Ready to unlock cash from your invoices?

If you have B2B invoices and want a quick, no-obligation review of invoice finance options (facilities typically from £10,000+), complete our short enquiry now and we’ll match you to suitable lenders and brokers: Get Started — Free Eligibility Check.

– What is invoice finance and how does it work?
Invoice finance lets UK B2B companies unlock 70–90% of an invoice upfront, with the balance (minus fees) released when the customer pays.

– How quickly can I access funds through invoice finance?
Once approved, many facilities release funds within 24–48 hours, subject to due diligence and lender timelines.

– Is the Fast Business Loans enquiry an application and will it affect my credit score?
No—our quick enquiry is not a loan application and won’t affect your credit score; lenders may run checks only if you decide to proceed.

– How does invoice finance compare to a business loan or overdraft?
Unlike fixed-term loans or overdrafts, invoice finance uses your invoices as security to provide fast, flexible working capital that scales with sales.

– What are the typical advance rates and fees for invoice factoring or discounting?
Typical advances are 70–90% with service/discount fees and possible setup/admin charges, all varying by lender, sector and debtor quality.

– What is the minimum facility size—can you fund invoices over £10,000?
Facilities usually start from around £10,000, and larger invoices can be funded subject to lender assessment of your debtor book and trading history.

– Will my customers know I’m using invoice finance?
It depends on the product—factoring usually involves notifying customers, while invoice discounting is typically confidential.

– Do start-ups or newer businesses qualify for invoice finance?
Some partners consider start-ups that invoice creditworthy businesses, though many lenders prefer 6–12 months’ trading history.

– What happens if a customer doesn’t pay—what’s the difference between recourse and non-recourse?
With recourse you may need to buy back unpaid invoices, while non-recourse (bad-debt protection) shifts some or all of the risk to the lender, depending on terms.

– Do I need security or a personal guarantee for invoice finance?
Requirements vary by lender and product, but many facilities are secured primarily against the debtor book and may also request a personal guarantee based on risk.