What is invoice finance and how does it work?

Invoice finance allows UK businesses to unlock cash tied up in unpaid invoices before customers pay. The lender advances up to 90% of the invoice value within 24 hours, then collects the full payment when the invoice is due. Spark Finance compares invoice factoring and invoice discounting from 250+ UK lenders to find the right solution.

What is the difference between invoice factoring and invoice discounting?

With invoice factoring, the lender manages your sales ledger and credit control on your behalf. With invoice discounting, you retain control of collections and the facility remains confidential to your customers. Both release up to 90% of invoice value. Spark Finance advises on which suits your business and finds the most competitive rates.

How quickly can I get invoice finance set up in the UK?

Most invoice finance facilities arranged by Spark Finance can be set up within 1-2 weeks from initial application. Once live, advances against new invoices are typically released within 24 hours. Apply at apply.sparkfinance.co.uk to get started.

What's the difference between factoring and discounting?

With factoring, the lender manages your credit control and chases payment. With discounting, you retain full control of customer relationships and collections.

How much does invoice finance cost?

Costs typically include a service fee (0.5-3% of turnover) and a discount charge (base rate + 2-5%). We find you the most competitive structure.

Which businesses are eligible?

Businesses that invoice other businesses (B2B) on credit terms. Most sectors are eligible. Minimum turnover is usually £50,000-£100,000 per year.

Can I finance specific invoices?

Yes - selective or spot invoice finance lets you choose which invoices to advance against, without committing your whole ledger.

Invoice Finance - Unlock Cash from Invoices | Spark Finance

Invoice Finance

Unlock cash tied up in your unpaid invoices

Improve cash flow without taking on new debt - funding tied to your sales ledger

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Finance Purpose

Jump toHow It Works Invoice Factoring Vs Discounting FAQs

How it works

Get funding in three simple steps

Check

Answer a few quick questions about your business and funding needs. No credit check required at this stage.

Chat

A dedicated Spark adviser will discuss your options and recommend the best funding structures for you.

Receive

Once approved, funds are released quickly - often within 24-48 hours of completing your application.

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Intelligent Lending

Our proprietary matching platform and data infrastructure gives UK SMEs access to the right lender faster than any traditional route.

Our technology

Spark can help

Cash flow challenges?

Invoice Factoring

We advance up to 90% of invoice value immediately, then collect payment from your customers on your behalf. Ideal for businesses that want credit control handled for them.

Apply now Work out costs

Invoice Discounting

Access up to 90% of invoice value while retaining control of your own credit control and customer relationships. Typically confidential to your customers.

Apply now Work out costs

Selective Invoice Finance

Choose which individual invoices to finance rather than your whole ledger. Perfect for businesses with occasional cash flow gaps.

Apply now Work out costs

Why Spark Finance

Why businesses choose us

Flexible

Finance your whole ledger or cherry-pick individual invoices as needed.

Specialists

We work with specialist invoice finance providers across all B2B sectors.

Fast decisions

Facilities set up in as little as 48 hours. Access funds the same day invoices are raised.

Tailored solutions

Confidential or disclosed, recourse or non-recourse - we find the right structure.

Who we help

Finance by Industry

Access funding for machinery, equipment upgrades, stock finance and operational cash flow.

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Common questions

Invoice Finance FAQs

Invoice finance lets you borrow against outstanding invoices, receiving up to 90% of their value immediately rather than waiting for customers to pay.

Find us near you

Invoice Finance across the UK

Spark Finance arranges invoice finance for businesses across England, Scotland, Wales and Northern Ireland. Select your nearest city for local rates and expert support.

London

South East

East of England

South West

Midlands

North West

Yorkshire

North East

Wales

Scotland

Northern Ireland

Invoice Finance in Belfast

Available in 173 cities and towns across the UK. Contact us if your location is not listed above.

Testimonials

What our clients say

Don't just take our word for it. Hear from the businesses we've helped access the right finance.

SECURE YOUR FINANCE

"Could not recommend Finn more highly enough. Fantastic service and communication from start to finish. Was happy to answer 100 questions and always there for any support."

James

Verified Trustpilot Reviewer

"Charlie was amazing throughout the entire process! He responded quickly to all our queries and kept us informed every step of the way. His support and dedication made the experience smooth and stress-free. Highly recommend working with him!"

Sarah T.

Verified Trustpilot Reviewer

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