Invoice finance for UK businesses: unlock cash tied up in unpaid invoices

Summary: Invoice finance turns unpaid customer invoices into immediate working capital. Fast Business Loans doesn’t lend — we match UK limited companies and partnerships with specialist lenders and brokers who can arrange factoring, invoice discounting or selective facilities from around £10,000 upwards. Complete a quick, no‑obligation enquiry and we’ll connect you to the best providers for your sector. Free Eligibility Check — Get Quote Now (no impact to your credit score).

What is invoice finance?

Invoice finance is a commercial funding solution that lets a business release cash tied up in unpaid customer invoices. Instead of waiting 30–120 days for customers to pay, you can access a large portion of the invoice value immediately. This improves liquidity and helps pay staff, suppliers or take on new orders.

Fast Business Loans is an introducer — we match your business with lenders and brokers who can provide invoice finance facilities. We do not make lending decisions. Use our free, no‑obligation enquiry to see if invoice finance could suit your business: Get Quote Now.

How invoice finance works — step by step

1. Issue an invoice to your customer as usual (B2B transactions typically).
2. You submit invoices or your debtor ledger to the invoice finance provider.
3. The provider advances a percentage of each invoice (commonly 70–90%) as immediate cash.
4. When the customer pays the invoice the outstanding balance is released to you, minus fees.

Typical timelines: initial decision in 24–72 hours for established businesses; funds available within 1–5 working days once paperwork is complete. Advance rates and turnaround times vary by provider and sector.

Quick callout: Facilities generally start from around £10,000 and are designed for limited companies and partnerships with B2B invoices. Free Eligibility Check — completing the form will not affect your credit score and is no obligation.

Types of invoice finance

Invoice factoring

With factoring, the provider manages collections and credit control on the invoices in return for an advance and service fees. Factoring is useful for businesses that prefer to outsource debtor management.

Invoice discounting (confidential)

Discounting keeps collections in your control and is usually confidential — your customers aren’t told. It suits businesses confident in their credit control and keen to keep relationships private.

Selective / spot factoring

Selective options let you factor individual invoices rather than the entire ledger — good for businesses with occasional cashflow spikes or seasonal demand.

To read a broader guide to options and use cases, see our pillar resource on invoice finance.

Get invoice finance quotes — Free Eligibility Check

Benefits and risks to consider

Benefits

• Improves cash flow quickly without waiting for customer payments.
• Supports growth: take larger orders, invest in stock or equipment.
• Flexible funding that grows with your sales.
• Factoring can free up time by outsourcing collections.

Risks & considerations

• Costs: arrangement fees, service fees and discount charges reduce net proceeds.
• Customer perception: some customers may react if they learn a third party manages payments (less likely with confidential discounting).
• Contract terms: minimum volumes, notice periods and audit requirements may apply.
• Suitability: not ideal for businesses with few B2B invoices or predominantly consumer sales.

Always check contract terms and ask prospective providers about fees and exit terms. Fast Business Loans can connect you to specialists who explain suitability and costs clearly: Get Quote Now.

Invoice finance eligibility checklist

Ideal profile

• Limited companies or partnerships (B2B trading).
• Regular invoices to creditworthy customers (often net terms of 30–90 days).
• Turnover and facility size typically from £10,000 upwards — lenders vary on minimums.

Documents you’ll usually need

• Recent debtor ledger or list of outstanding invoices.
• Management accounts (three to twelve months) and bank statements.
• Company registration and ID for directors.

Have adverse credit or late payments? You may still be eligible; some providers accept imperfect histories depending on customer strength. Find out quickly with a Free Eligibility Check.

Costs & fees explained (illustrative example)

Invoice finance costs vary. Typical fee components:

• Advance fee / discount charge — percentage of invoice value per time outstanding.
• Service fee — monthly management or account keeping fee.
• Arrangement or set-up fee — one-off on facility acceptance.
• Credit control / audit fees — depending on service level.

Illustrative example (for guidance only)

Invoice value	Advance rate	Advance paid	Fees (approx.)	Balance on payment
£100,000	85%	£85,000	Discount/fees ≈ 2% (£2,000) + service fee £200	£12,800 (after fees and held reserve)

Illustration only — actual costs depend on provider, invoice ageing and sector. Ask for personalised quotes: Get Quote Now. No obligation; completing the form does not affect your credit score.

Why use Fast Business Loans for invoice finance?

• We save you time: one short enquiry connects you to multiple specialist lenders and brokers.
• Sector matching: we find partners who understand your industry and customer base.
• Options compared: see confidential discounting, factoring and selective solutions side‑by‑side.
• Secure and fast: your details are shared only with relevant partners able to help.

We do not lend money or provide regulated advice — we introduce you to providers likely to meet your requirements. Start with a quick enquiry: Start Your Free Eligibility Check (no obligation).

Industries we commonly support

We frequently match businesses in:

• Construction and building services
• Manufacturing and engineering
• Logistics and transport
• Wholesale and distribution
• Professional services supplying other businesses
• Retail (B2B supply lines)

If your business invoices other businesses and needs faster access to working capital, invoice finance could be suitable. Get Quote Now.

Real-world examples & outcomes

Case snapshot 1 — Manufacturing

Challenge: Manufacturer waiting 60–90 days for payment, missing supplier discounts. Outcome: Matched with a selective invoice discounting broker; advance funded production runs, reduced supplier costs and increased margins.

Case snapshot 2 — Logistics

Challenge: Rapid growth meant cash was tied up in invoices. Outcome: Introduced to a factoring provider who advanced 80% of invoices and provided credit control support — business expanded fleet and won larger contracts.

Want similar outcomes? Get a Free Eligibility Check — it takes under two minutes and is no obligation.

Invoice finance vs other funding options

Funding type	Speed	Security	Best for
Invoice finance	Fast (days)	Usually secured against invoices	Businesses with B2B invoices needing working capital
Business loan	Slower (days–weeks)	Secured or unsecured	Fixed-term projects or investment
Overdraft	Quick if pre-approved	Often unsecured	Short-term cash buffering
Asset finance	Fast–moderate	Secured against asset	Buying equipment or vehicles

Each option has pros and cons. We’ll match you to specialists so you can compare the right solutions for your situation: Compare Options — Free Eligibility Check.

From enquiry to funding with Fast Business Loans

1. Complete our quick online enquiry — takes under 2 minutes.
2. We match you to appropriate lenders and brokers based on your sector and requirements.
3. A provider contacts you to request documents, carry out checks and agree terms.
4. Sign and receive funds — timing depends on provider and paperwork.

We only introduce you to providers who can help — Fast Business Loans does not make lending decisions. Start your Free Eligibility Check. No obligation. Completing the form does not affect your credit score.

Frequently asked questions

Is invoice finance suitable for small businesses?

Yes — many small and growing businesses use invoice finance to smooth cash flow. Providers differ on minimum facility sizes; our matching service will find options from around £10,000 upwards.

How quickly can I receive funds?

Once approved and paperwork is complete, funds can be available within 24–72 hours for many businesses. Exact timing depends on the provider and the complexity of your debtor ledger.

Will my customers know I’m using invoice finance?

It depends. Factoring usually involves third‑party collections and may be visible to customers. Confidential invoice discounting keeps your credit control in-house and is not disclosed to customers.

What happens if a customer doesn’t pay?

Protection depends on the facility. Non‑recourse factoring can protect against customer insolvency (at higher cost). With recourse facilities you may remain liable. Always check contract terms with the provider.

Does using Fast Business Loans affect my credit score?

No — submitting an enquiry via Fast Business Loans does not affect your credit score. Some lenders may carry out credit checks later during underwriting if you proceed.

Ready to improve cash flow?

If unpaid invoices are slowing your business, invoice finance can unlock working capital quickly. Fast Business Loans will match you with lenders and brokers who specialise in the right solution for your sector. Complete a short enquiry now and get tailored quotes:

Get Quote Now — Free Eligibility Check

No obligation. Completing the form does not affect your credit score. Fast Business Loans is an introducer; we do not provide loans or regulated financial advice. Final terms depend on provider assessment and your circumstances.

1) What is invoice finance and how does it work?
Invoice finance lets UK businesses unlock cash from unpaid B2B invoices by advancing typically 70–90% upfront and releasing the balance (minus fees) when the customer pays.

2) Who is eligible for invoice finance and what’s the minimum facility size?
It suits UK limited companies and partnerships that invoice other businesses to creditworthy customers, with facilities usually starting from around £10,000.

3) How quickly can I get funding through invoice finance?
Initial decisions often take 24–72 hours and funds can be released within 1–5 working days once paperwork is completed.

4) What’s the difference between factoring, invoice discounting and selective/spot finance?
Factoring outsources collections and is often disclosed, invoice discounting keeps credit control in‑house and is usually confidential, and selective/spot lets you fund individual invoices as needed.

5) What happens if a customer doesn’t pay their invoice?
Protection depends on the facility: non‑recourse can cover customer insolvency at higher cost, while recourse facilities usually leave you liable—so check terms carefully.

6) What documents will I need to provide?
You’ll typically need a recent debtor ledger, management accounts and bank statements, plus company registration details and director ID.

7) How much does invoice finance cost?
Costs vary but commonly include a discount/advance charge, a service/management fee and sometimes arrangement or audit fees—so compare personalised quotes.

8) Will my customers know I’m using invoice finance?
With confidential invoice discounting customers usually aren’t told, while factoring is generally visible because the provider manages collections.

9) Can I get invoice finance with adverse credit or if I’ve been declined elsewhere?
Some providers will consider adverse credit if your debtor book is strong, so it’s worth completing the free, no‑obligation eligibility check.

10) Is Fast Business Loans a lender, and will submitting an enquiry affect my credit score or cost anything?
Fast Business Loans is an introducer (not a lender), and submitting our quick enquiry is free, no obligation, and does not affect your credit score.