Invoice Finance: Fast Cash Flow Support for UK Businesses

Summary: Invoice finance turns unpaid customer invoices into working capital so your business can pay bills, meet payroll and seize growth opportunities. Fast Business Loans doesn’t lend — we quickly match limited companies and SMEs seeking £10,000+ with the most suitable UK lenders and brokers. Use our free, no-obligation enquiry to get tailored matches and a rapid response from finance specialists. Free Eligibility Check

Why Consider Invoice Finance Right Now?

Many UK businesses carry significant working capital tied up in customer invoices. Longer payment terms and slow debtor collections can stall growth or create short-term cash crises. Invoice finance unlocks that value quickly — often within 24–48 hours of invoice approval — so you can:

• Pay suppliers and staff on time
• Take advantage of supplier discounts
• Bridge seasonal sales dips
• Invest in equipment or a new contract without waiting for payment

If you need to release cash from invoices to stabilise or scale, a invoice finance solution could be the right choice. Get Started with a Free Eligibility Check

What Is Invoice Finance?

Invoice finance is an umbrella term for facilities that convert unpaid invoices into immediate working capital. Instead of waiting 30, 60 or 90 days for customer payments, you receive a large portion of the invoice value up front and the remainder (less fees) when the debtor pays.

Common approaches include factoring and invoice discounting; both provide advances against debtor invoices but differ in how collections and credit control are handled.

Invoice Factoring vs. Invoice Discounting

Selective & Whole Ledger Options

Invoice finance is flexible. Whole-ledger facilities cover your entire sales ledger. Selective or spot funding lets you fund specific invoices or particular customers — useful when you have a large, creditworthy contract to fund without funding all sales.

How Fast Business Loans Helps You Secure the Right Facility

We are a matching service — not a lender. Our role is to understand your business briefly, then introduce you to lenders and brokers who specialise in invoice finance for your sector and size of deal.

• Fast matching to providers experienced in your industry
• Confidential, no-obligation introductions
• Clear information on likely costs and advance rates
• Support for deals from £10,000 upwards

Our 4-Step Matching Process

1. Complete a short enquiry — the form takes under 2 minutes.
2. We assess your needs and identify suitable brokers/lenders.
3. Matched partners contact you directly with options and indicative pricing.
4. You compare offers and decide — no obligation to proceed.

Get My Invoice Finance Matches

Eligibility Checklist & Typical Requirements

While requirements vary by provider, common criteria include:

• Limited company trading history (often 6–12 months+)
• Outstanding invoices to creditworthy business customers
• Management accounts or recent turnover figures
• No requirement to include the whole ledger for selective facilities
• Minimum deals usually start around £10,000

Even if you’ve had a previous lending refusal, invoice finance can still be viable when your customers have strong credit. Free Eligibility Check

How Much Can You Borrow Against Invoices?

Advance rates typically range from 70% to 95% of an approved invoice value depending on debtor quality and provider. Example: with a 90% advance on a £50,000 invoice you’d receive £45,000 up front; the remaining £5,000 (less fees) is released once your customer pays.

Invoice Finance Costs and How Fees Are Structured

Costs vary significantly. Typical fee elements:

• Advance/discount charge — interest or a percentage of invoice value while funds are outstanding
• Service/management fee — monthly or percentage-based for administration
• Setup fee — one-off on facility arrangement
• Percentage retention — holdback until customer pays

Illustrative scenario: 1.5% discount charge + 0.5% management fee on a £100,000 ledger could mean effective cost of around £2,000–£3,000 per month depending on payment speed. Exact pricing is agreed by the lender/broker — we’ll match you with partners who can give personal quotes. Get Quote Now

Real-World Use Cases Across UK Industries

Invoice finance is widely used because it solves immediate cashflow problems across sectors. Examples:

• Manufacturing: A regional manufacturer used factoring to fund raw material purchases after winning a large contract — delivered within a week.
• Hospitality & Catering: A growing caterer used selective discounting to fund a major event contract without changing day-to-day collections.
• Professional Services (limited companies): A consultancy used confidential invoice discounting to pay contractors while maintaining client relationships.

Comparing Invoice Finance with Other Working Capital Solutions

Quick comparison:

• Invoice finance — unlocks cash from sales ledger, fast access tied to debtor credit.
• Business loans — lump-sum funding based on company credit and security.
• Asset finance — funds against equipment rather than invoices.
• Overdrafts/credit lines — flexible but may be limited and more expensive for high working capital needs.

Your best solution depends on speed, cost tolerance, confidentiality and whether you want to outsource credit control.

How to Prepare for a Successful Application

Preparing documents speeds approval. Typical items to have ready:

• Recent management accounts and turnover figures
• Aged debtor report detailing customers and invoice due dates
• Sample invoices and details of any credit insurance
• Information about any existing borrowing or CCJs

Being organised helps brokers provide accurate, fast quotes.

Safeguarding Your Business – Compliance, Risks and FAQs

Invoice finance is a powerful tool but be aware of risks:

• Fees and charges can add up — always compare full cost illustrations.
• If the funder manages collections, ensure the approach suits your client relationships.
• Some agreements include covenants — understand termination and notice periods.

Common quick FAQs are answered in the structured FAQ above. If you need more detail, our matched brokers will walk through pros and cons for your situation. Speak to an Invoice Finance Specialist

Start Your Free Invoice Finance Enquiry

Ready to explore options? Complete our short enquiry and we’ll match you with lenders and brokers who specialise in invoice finance for businesses like yours. It’s free, confidential and non-binding. Matches typically respond quickly so you can compare offers and proceed only if you’re happy.

Get Started — Free Eligibility Check

Important: Fast Business Loans introduces businesses to UK finance brokers and lenders. We do not lend funds or provide regulated financial advice. Decisions, rates and terms are set by the finance provider. Submitting an enquiry will not affect your credit score; lenders may perform credit checks later if you proceed. Information is correct at publication — always confirm terms with your chosen provider.

– What is invoice finance and how does it work?
Invoice finance lets UK businesses unlock cash tied up in unpaid invoices by advancing 70–95% up front and paying the balance (less fees) when the customer settles.

– How quickly can invoice finance release cash?
Once your facility is set up and an invoice is approved, many providers release funds within 24–48 hours.

– How much can I borrow against my invoices?
Advance rates typically range from 70% to 95% of approved invoice values, with minimum deal sizes usually starting around £10,000.

– What are the typical fees for invoice finance?
Costs usually include a discount/interest charge on funds advanced, a service or management fee, and possible setup or admin fees depending on provider and debtor risk.

– What’s the difference between invoice factoring and invoice discounting?
Factoring is often disclosed and includes outsourced collections, while invoice discounting is usually confidential and you retain credit control.

– Do I have to finance my entire sales ledger?
No, selective or spot invoice finance lets you fund specific invoices or customers rather than your whole ledger.

– What information do lenders ask for when assessing invoice finance?
Expect to provide company details, recent management accounts, an aged debtor report, and sample invoices.

– Will submitting an enquiry through Fast Business Loans affect my credit score?
No, our free eligibility check does not affect your credit score, though lenders may run credit checks if you choose to proceed.

– Is the Fast Business Loans enquiry an application for finance?
No, it’s a free, no-obligation matching enquiry that connects you with suitable UK lenders and brokers.

– Will invoice finance affect my customer relationships?
Confidential invoice discounting keeps funding private from your customers, whereas factoring may involve the funder contacting debtors so you can choose the approach that fits.