Invoice finance, also known as debtor finance or factoring, helps businesses unlock cash tied up in unpaid invoices by providing an upfront advance of up to 95% of the invoice value. The remaining balance, minus fees, is paid once the customer settles the invoice.
Types of invoice finance facilities include:
Costs typically include:
To qualify for an unsecured business loan, lenders typically look at your business’s credit history, annual revenue, trading duration (usually 6+ months), and your ability to repay. Unlike secured loans, you don’t need to offer collateral, making it ideal for fast-growing or asset-light businesses.
Unsecured business loans usually range from £5,000 to £500,000. The amount you're eligible for depends on your revenue, creditworthiness, and lender criteria. We work with lenders who offer flexible borrowing limits tailored to your needs.
Some of our lending partners offer decisions within 24 hours, and funding can be released as quickly as the same day. The process is online, streamlined, and hassle-free, so you can focus on growing your business.
Unsecured loans can be used for almost any business purpose, including cash flow management, stock purchases, equipment upgrades, marketing campaigns, or hiring new staff. It’s up to you how to invest in your growth.
Interest rates for unsecured business loans typically range from 6% to 25% APR, depending on the lender, loan amount, and your credit profile. Repayment terms vary between 6 months and 5 years. We’ll match you with the best rates available for your situation.
Complete our quick online form with a few details about your business and what you need funding for. No commitment, no jargon.
A dedicated finance expert will get in touch to understand your needs and tailor options that work for your business.
We’ll match you with trusted lenders from our panel, offering competitive rates and flexible terms suited to your sector.
Review your finance offers with full transparency. We’ll guide you through the details so you can make a confident decision.
Once approved, your funds are released quickly — often within 24–48 hours — so you can get back to growing your business.
Healthcare & Life Sciences
Technology & Telecommunications
Manufacturing & Industry
Transportation & Logistics
Services
With invoice finance, you can typically access between 80% and 95% of the invoice value upfront, depending on the lender, the type of facility, and your business profile. For example, some providers may offer a higher advance rate if you have reliable clients, strong trading history, or a lower-risk industry profile.
The remaining balance, usually 5–20%, is paid to you once your customer settles the invoice, minus the lender’s fees. This structure enables your business to unlock working capital tied up in unpaid invoices, improving cash flow and liquidity without waiting for customers to pay.
Both invoice factoring and invoice discounting allow you to convert sales invoices into immediate cash, making it easier to cover operational costs, invest in growth, or manage seasonal fluctuations.
One of the main advantages of invoice finance is the speed at which you can access your money. Once an invoice has been verified and approved by the provider, funds can be released within 24 to 48 hours.
For existing clients with an established facility, the process can be almost instant, with same-day funding in many cases. The exact timeframe will depend on how quickly the lender can validate your invoices and confirm your customers’ creditworthiness.
This makes invoice financing an ideal solution for businesses that need fast access to working capital to manage payroll, purchase stock, or take advantage of new opportunities, without waiting for long payment terms to clear.
Setting up a new invoice finance facility generally takes between one and three weeks, though the timeline can vary depending on your business structure and the provider’s processes.
The setup involves an initial consultation to assess your funding needs, submission of key business documents (such as financial accounts, invoices, and customer details), and credit checks on both your company and your clients.
Some lenders offer express setup services for straightforward applications, meaning businesses with simple invoicing arrangements could access funding in just a few days.
Once your facility is active, drawing funds against invoices becomes a smooth and repeatable process, providing a reliable source of ongoing cash flow.
Whether or not your clients know about your invoice finance facility depends on the type of service you choose:
Invoice Discounting is confidential, meaning your customers remain unaware that a third party is involved. You retain full control of your credit management and collections process.
Invoice Factoring, on the other hand, is a disclosed arrangement where the finance provider manages collections directly, contacting clients to verify invoices and chase payments.
Both options have benefits, confidential discounting offers discretion and control, while factoring provides convenience and outsourced credit management. Your choice will depend on your business size, resources, and customer relationships.
Commitments for invoice finance facilities vary between lenders. Some providers offer flexible, rolling agreements that allow you to use the facility as needed, while others may have minimum term contracts, often ranging from 6 to 12 months.
Even when a term is set, most agreements allow businesses to exit early with advance notice, although a small termination fee may apply. It’s also quite common for businesses to switch from one invoice finance provider to another for better rates, improved service, or more suitable terms.
Both your current provider and your new lender will usually assist with a smooth transition, ensuring that your cash flow remains uninterrupted throughout the process.
.png)
"Invoice finance transforms unpaid invoices into working capital, giving businesses a flexible and often cost-effective funding solution. While it’s sometimes misunderstood, modern invoice finance can adapt to diverse needs, helping businesses improve cash flow without waiting for client payments."
