What is invoice finance and how it works

Invoice finance is a form of working capital that unlocks the cash tied up in unpaid customer invoices. Instead of waiting 30, 60 or 90+ days for payment, a provider advances a large percentage of the invoice value immediately, helping you pay staff, suppliers and invest in growth.

Two common approaches are invoice discounting (you keep control of credit control and customer relationships) and invoice factoring (the provider may manage collections). Advances commonly range from around 70%–90% of invoice value, with the remainder paid (less fees) once your customer settles the invoice.

How it typically plays out:

1. Submit details of your debtor book and business via a quick enquiry.
2. Provider performs checks—often a soft search—and issues a proposal.
3. On agreement, you receive an advance against your outstanding invoices.
4. When the customer pays, the provider releases the remaining balance minus fees.

Free Eligibility Check • Soft search • Takes under 2 minutes.

Invoice finance options we can introduce

Invoice discounting

Best for businesses that want discreet funding and to retain control of customer relationships. Advances are usually high and confidentiality can be preserved with “undisclosed” arrangements.

Invoice factoring

Offers funding plus outsourced collections and credit control. Useful if you want time back from chasing payments or need support managing debtor risk.

Selective / spot factoring

Finance individual or batches of invoices rather than an entire book. Flexible when you have irregular cash needs or want to trial the product.

Sector-specific solutions

There are specialised products for construction milestone billing, recruitment payroll funding, and export-focused invoice finance that consider international debtor risk.

Typical advance: 70%–90% of invoice value (varies by provider and debtor credit quality).

Get Quote Now — we’ll match you to providers that offer these options.

Why UK businesses choose invoice finance

• Improves cash flow predictability so you can run payroll and pay suppliers on time.
• Supports growth — spend on stock, staff or expansion without waiting for customer payments.
• Helps businesses with seasonality or long payment terms avoid overdrafts or emergency borrowing.
• Can allow you to take on larger customers or bigger contracts with confidence.
• Selective options let you fund only the invoices you want.

Start your Free Eligibility Check — no obligation, no fee from us.

How Fast Business Loans matches you with the right invoice finance partner

We don’t lend. We introduce. Our role is to connect your business to lenders and brokers that fit your needs, saving you time and increasing your chance of a suitable offer.

1. Quick enquiry

Complete a short form in under two minutes to tell us about your business, turnover and the funding you need. This does not affect your credit score.

2. Targeted matching

We use your sector, debtor profile and funding amount to match you with specialist lenders and brokers who understand your industry.

3. Rapid responses

Partners typically respond within hours to discuss terms, provide indicative costs and next steps.

4. Choose the best offer

Compare quotes and pick the provider or broker that suits your priorities. There’s no obligation to proceed.

Get Started — Free Eligibility Check • Takes under 2 minutes • Soft search • No broker fees from us.

Invoice finance across UK sectors

We commonly help limited companies and growing businesses across:

• Manufacturing and engineering
• Construction and subcontractors
• Logistics and transport
• Recruitment and professional services
• Wholesale, retail and e-commerce
• Healthcare suppliers and clinics

Different sectors have different risk profiles and payment cycles — we match you to partners who specialise in your area.

Invoice finance eligibility and what lenders look for

While exact criteria vary by provider, these are commonly required:

• Trading history (many lenders prefer at least 6–12 months trading, though specialist panels can consider shorter histories)
• Quality of invoices — clear terms, verifiable debtor details
• Debtor creditworthiness — providers assess the strength of your customers
• Turnover and debtor concentration — high reliance on a single large debtor may affect terms

Documents often requested: aged debtor report, recent management accounts, VAT returns and sample invoices.

Funding range: many providers work from around £10,000 upwards to multi‑million facilities, depending on turnover and sector.

Free Eligibility Check — we’ll advise which documents to prepare.

Costs, risks and questions to ask

Invoice finance is not free. Key cost elements include:

• Discount rate / finance fee — charged on the value drawn down against invoices
• Service or management fees — monthly minimums or administration charges
• Onboarding or legal costs — sometimes applied for complex facilities

Risks and considerations:

• Confidentiality — with disclosed factoring your customers will be told; undisclosed discounting keeps this private but can be more restrictive.
• Customer relationships — if the provider manages collections, agree clear service levels.
• Contract length and termination terms — review notice periods and transfer conditions.

Questions to ask prospective providers: What is the typical advance rate? Are there minimum monthly fees? Who handles customer communications? What notice is required to cancel?

Real‑world use cases

Want similar results? Get a Free Eligibility Check.

How invoice finance compares with other funding options

When to prefer invoice finance:

• You have strong invoices but slow-paying customers.
• You need ongoing working capital linked to sales.
• You prefer flexible, scalable funding that grows with turnover.

Alternatives to consider:

• Business loans — better for one-off investments or where debtor quality is poor.
• Overdrafts — short-term, but limits can be withdrawn and can be expensive long-term.
• Asset finance — suitable for funding equipment rather than receivables.

We can introduce providers across these options — Get Quote Now to explore the right fit.

Get your free invoice finance eligibility check

Ready to see what invoice finance could do for your business? Complete our short enquiry and we’ll match you with lenders and brokers who understand your sector and needs. You’ll receive fast, no‑obligation quotes so you can compare without pressure.

Start your Free Eligibility Check — takes under 2 minutes • Soft search • No fee from us.

What happens next:

1. We review your submission and match you to suitable partners.
2. A partner gets in touch to discuss options and any documents needed.
3. Receive proposals and choose the best fit for your business.

Invoice Finance FAQs

Is invoice finance suitable if I’ve been declined elsewhere?

Possibly. Different providers have different appetite and criteria. Our matching increases the chance of finding a panel member who will consider your circumstances. Provide clear trading figures and debtor details for the best outcome.

How quickly can funding be released after approval?

Many providers can advance funds within 24–48 hours of completing checks and contractual steps, but timescales vary by provider and the complexity of the facility.

Will my customers know I’m using invoice finance?

It depends. With factoring customers are usually notified; with invoice discounting you can often keep the arrangement confidential. Ask providers about disclosure options when comparing offers.

Will applying affect my credit score?

Submitting an enquiry via Fast Business Loans does not affect your credit score. Lenders may conduct credit checks only once you choose to proceed with them.

Do I have to finance every invoice?

No — selective or spot factoring lets you fund individual invoices as needed. Full-book facilities finance your entire eligible debtor ledger.

Still have questions? Get a Free Eligibility Check or contact our team via the enquiry form.

Disclosure, privacy and contact

Fast Business Loans is an introducer, not a lender. We do not provide financial advice; we connect businesses with lenders and brokers who can discuss products and suitability. Our service is free to business owners. Completing the enquiry form does not affect your credit score. Always read provider terms and consider independent advice if you are unsure.

Privacy & data: we only share your details with partners relevant to your enquiry and handle data in line with applicable data protection law. For full details see our privacy policy.

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