Invoice Finance for UK Businesses | Fast Business Loans

Summary: Invoice finance (factoring and discounting) lets businesses release cash tied up in unpaid invoices, improving working capital and supporting growth. Fast Business Loans connects UK limited companies and LLPs to lenders and brokers who specialise in invoice finance facilities from £10,000 upwards. Complete a short, no‑obligation enquiry — it’s not an application and won’t affect your credit score — and we’ll match you with suitable providers for quick quotes. Free Eligibility Check

What is invoice finance and how it works

Invoice finance is a form of working capital finance that converts unpaid customer invoices into immediate cash. Instead of waiting 30, 60 or 90 days for customers to pay, a lender or broker advances a percentage of the invoice value to your business. Once the invoice is paid by your customer the remaining balance (less fees) is released to you.

This type of finance is commonly used to: shorten cash flow cycles, fund large contracts, smooth seasonal peaks, and support rapid growth without taking on secured bank debt. Fast Business Loans does not provide finance directly — we match businesses to lenders and brokers who can offer the right facility for your needs. To start, you can complete a short enquiry form for a Free Eligibility Check.

Invoice factoring vs invoice discounting

Why use Fast Business Loans for invoice finance?

If you need to release cash quickly from outstanding invoices but don’t have time to search the market, we simplify the process. Fast Business Loans is a lead introducer — we connect your business to lenders and brokers experienced in invoice finance for amounts from £10,000 upwards. Our service is free and there’s no obligation to proceed once you’re matched.

Our 4-step matching process

1. Complete a 2-minute enquiry (this is an enquiry only; not an application).
2. We match your details to lenders and brokers who specialise in your sector.
3. Selected partners contact you by phone or email with quotes and next steps.
4. You compare offers and decide which provider to progress with.

Submitting an enquiry triggers a soft review only; lenders may perform hard credit checks later if you accept an offer. Get Started – Free Eligibility Check

Invoice finance options we can introduce

Fast Business Loans can introduce a range of invoice finance products depending on your needs. We don’t advise or lend; we match you to providers who can.

Selective invoice finance

Advance against specific invoices you choose. Ideal if only part of your ledger needs funding or you have a mixed debtor profile. Advance rates typically 70–90% depending on debtor credit quality.

Whole-ledger factoring

Facility covers your entire debtor book. Useful for businesses needing a comprehensive funding and credit control solution. Often includes credit insurance and reporting.

Confidential invoice discounting

Maintains customer relationships while you retain control of collections. Suitable for established businesses with strong internal credit control systems.

Sector / project-based solutions

Specialist structures for construction, manufacturing or large one-off contracts (including CHOCs-style arrangements). These are tailored and may include retention release mechanisms.

For a deeper guide on options and when each is suitable, read our pillar information on invoice finance.

Eligibility checklist for UK SMEs

Being prepared speeds up decisions. Typical lender requirements include:

• Company type: UK limited companies and LLPs (no sole trader/profession-only references here).
• Minimum facility size: many providers start around £10,000 or higher.
• Trading history: most lenders prefer several months’ trading; requirements vary.
• Invoice profile: regular invoices issued to creditworthy businesses or public sector bodies are ideal.
• Low debtor concentration: too many invoices to a single customer can be a risk.

Documents to prepare

• Aged debtor report (showing invoices outstanding)
• Recent management accounts and bank statements
• Copies of key invoices and customer contracts
• Director ID and company registration details

Cost structure & fees explained

Costs vary by provider and depend on risk, debtor quality and facility type. Key elements to understand:

Advance rate vs retained balance

Advance rate = percentage of invoice value paid upfront. Retained balance = amount held until customer settles, minus fees.

Discount fee & service fee

Discount fee is the core cost (a percentage of invoice value, charged for the time the invoice is outstanding). Service fees may cover administration, credit control or online portal access.

Hidden costs to query

• Onboarding/set-up fees
• Minimum monthly fees
• Audit or account monitoring charges
• Notice periods and termination costs

Always ask prospective providers for a total cost example based on your average invoice values and payment terms.

Benefits and risks to weigh up

Talk to vetted brokers – Free Quote

Industries we frequently support with invoice finance

We commonly introduce finance to businesses in:

• Construction – fund materials and labour while projects are billed
• Manufacturing – bridge supplier payments during production cycles
• Wholesale & distribution – fund larger stock purchases
• Recruitment – smooth payroll while waiting for client payments
• Logistics & transport – cover fuel, drivers and fleet costs
• Care & healthcare services – manage billing delays from commissioners
• Technology & B2B services – where recurring invoices exist

Step-by-step: submitting your enquiry

1. Click the enquiry link and complete the short form (2 minutes): Free Eligibility Check.
2. We securely share relevant details with matched partners only.
3. Expect a call or email with questions and indicative quotes.
4. Compare offers and proceed with the provider you choose; they will complete any formal checks.

Your enquiry is not a credit application and will not, by itself, harm your credit record. Data is handled securely and in line with our privacy policy.

Frequently asked questions about invoice finance

How quickly can funds be released?

Once a facility is agreed, many lenders can advance funds within 24–72 hours of receiving verified invoices and completing onboarding checks. Timelines vary by provider.

Will my customers know I’m using invoice finance?

With factoring, customers are normally notified because the lender may collect payments. With confidential discounting customers usually remain unaware. Discuss confidentiality preferences with brokers.

What happens if a customer doesn’t pay?

Terms differ. Under recourse agreements your business may be liable for unpaid invoices. Non-recourse options exist but are usually more expensive and depend on debtor creditworthiness.

Does applying affect my credit score?

Submitting an enquiry through Fast Business Loans triggers a soft check only. Lenders may carry out hard credit checks later if you accept an offer.

Is invoice finance suitable for all businesses?

It is best suited to businesses that invoice other businesses or public sector organisations on credit terms and want faster access to cash. Minimum facility sizes are typically from £10,000.

How much does invoice finance cost?

Costs vary, but expect a discount/finance fee plus service or admin charges. Always request worked examples from providers based on your typical invoices.

Ready to unlock cash flow? Start your free eligibility check

If invoices are slowing your growth, our quick enquiry connects you to specialist lenders and brokers who can provide tailored quotes. It’s fast, free and non‑binding. Complete your short enquiry now and get matched to providers who can quote for facilities from £10,000 upwards: Get My Invoice Finance Quote.

Important information: Fast Business Loans is an introducer — we do not lend and we do not provide financial advice. Completing the enquiry form is not a loan application; it enables us to match your business with appropriate lenders and brokers. Outcomes, terms and costs vary by provider and by business circumstances. Consider affordability carefully.

No guarantees of approval. Enquiries do not constitute applications. For privacy, complaints and terms see our site footer links.

– What is invoice finance and how does it work?
Invoice finance converts your unpaid B2B invoices into immediate working capital, with a lender advancing funds now and releasing the remainder (less fees) when the invoice is paid.

– How quickly can funds be released?
After setup, many lenders fund within 24–72 hours of receiving verified invoices, though timelines vary by provider.

– How much can I advance against my invoices?
Typical advance rates are 70–90% of eligible invoice value, with facilities generally starting from £10,000.

– Who is eligible for invoice finance?
Most providers support UK limited companies and LLPs that invoice creditworthy businesses or public bodies, prefer some trading history and a diversified debtor book, and will ask for basics like an aged debtor report.

– Will submitting an enquiry affect my credit score?
No — our online enquiry is not a loan application and triggers only a soft review; hard checks may occur later only if you accept an offer.

– Will my customers know I’m using invoice finance?
Factoring is usually disclosed because the lender manages collections, while confidential invoice discounting keeps the facility private and you retain control.

– What does invoice finance cost?
Expect a discount (finance) fee plus service/admin charges, and check for any setup, minimum monthly, audit or termination fees to understand the total cost.

– What happens if a customer doesn’t pay?
Under recourse facilities you’re liable to repurchase or replace unpaid invoices, whereas non-recourse options may cover bad debt but at higher cost and subject to criteria.

– What types of invoice finance can I access through Fast Business Loans?
We can introduce selective invoice finance, whole-ledger factoring, confidential invoice discounting and sector/project-based solutions (e.g., construction) via trusted lenders and brokers.

– How do I get started and do you charge a fee?
Complete the Free Eligibility Check to be matched with suitable lenders/brokers — Fast Business Loans is an introducer (not a lender), the service is free, and there’s no obligation to proceed.