Invoice Finance for UK Businesses

Compare Invoice Finance Providers

InvoiceWise helps UK businesses compare the best funding options through a single, straightforward enquiry. It only takes a few minutes, and you can skip the usual sales pitch. We connect agencies with FCA-approved lenders that routinely release up to 95% of an invoice’s value within 24 hours of approval.

Why UK Businesses Use Invoice Finance

Stuck waiting 30, 60, or even 90 days for invoices to clear? This is a common challenge for UK businesses, especially SMEs and startups. But invoice finance can unlock up to 95% of your unpaid invoices in as little as 24 hours, allowing you to keep operations running smoothly while you wait for customers to pay.

There are various types of invoice finance to suit different needs, including invoice discounting, invoice factoring, and selective invoice factoring. If you’re weighing up your options, InvoiceWise can help. We’ll provide a personalised invoice finance quote and help you figure out exactly what kind of facility you need.

You can also check out our breakdown of different types of invoice finance for more information.

How Does Invoice Finance Work?

What Is Invoice Finance?

Invoice finance is an umbrella term for invoice factoring, invoice discounting, and selective invoice finance. It is a quick and easy way for UK businesses to unlock cash against unpaid invoices.

A finance provider buys your customer’s unpaid invoices and advances you a large share of the money upfront (usually 80-95%). Depending on which facility you choose, when the invoice is due, your customer either pays you or the provider. The provider then settles the rest of the invoice amount, minus fees.

Invoice finance is ideal for B2B businesses operating in recruitment, manufacturing, hospitality, and more.

The Benefits of Invoice Finance for UK Businesses

Many small-medium-sized businesses choose invoice finance over traditional bank loans because it offers more flexibility, faster access to cash, and better supplier terms.

Cash in 24-48 Hours

No waiting around for complicated loan approvals. Invoice finance unlocks immediate working capital from money you're already owed.

Funding That Grows with You

Your borrowing limits will automatically increase along with your sales ledger, so you can enjoy flexible access to cash when you need it.

Smooth Operations

Say goodbye to complicated admin and long applications. Simply plug your cash flow gaps and focus on running your business.

No Large Debt Repayments

Because you're accessing money you've already earned, you can avoid the large monthly repayments and heavy commercial debt that come with traditional bank loans.

Who Is Invoice Finance For?

Am I Eligible for Invoice Finance?

You’ll generally be eligible for invoice finance if you run a B2B (business-to-business) or B2G (business-to-government) company that sells goods or services to other businesses on credit.

Here are some of the criteria:

Credit terms. You’ll need invoices with clear payment terms that “guarantee” repayment within 30-120 days.
Invoice status. You can only raise unpaid invoices for goods or services that have already been delivered. Purchase order finance might be better if you need cash upfront before completing a contract.
Customer credit history. Invoice finance providers will assess the creditworthiness of your customers, rather than your business, to assess their likelihood of paying on time.

Providers will automatically assess your eligibility when you apply through InvoiceWise.

Different Types of Invoice Finance for UK Businesses

Who Offers Invoice Finance?

There are many different providers in the UK, ranging from specialist invoice finance companies and fintechs to banks and other financial institutions.

At InvoiceWise, we compare quotes from a range of FCA-approved providers to suit your needs and situation. No more spending hours on the phone going through eligibility criteria with different lenders. Just clearer terms, better rates, and super-fast payouts.

One quick application puts your details in front of multiple providers. So, whether you’re looking for a one-off solution to fill a temporary gap or long-term steady working capital, we’ll help you find the best facility.

Let Us Help You Find the Right Invoice Finance Provider

We're connected with hundreds of FCA-approved lenders, and we're ready to help you unlock cash from your unpaid invoices.

Experience & Reputation

We'll connect you with lenders who have experience in your specific industry, that understand your customers and can provide the best, most suitable service.

Rates & Fees

We'll help you find the best fees and interest rates so you're not paying more than you need to.

Common Misunderstandings About Invoice Finance

Many UK businesses end up leaving money on the table because of outdated ideas about invoice finance and who it’s for. Let’s clear up some misconceptions.

“Invoice finance costs a lot.” Our providers offer rates as low as 0.05%, which in some cases is less than a traditional bank loan. Fees scale with the amount you’re borrowing.
“It means you’re struggling.” Many successful UK businesses use invoice finance, including those with turnovers of over £1m. It’s a convenient, scalable way to cover costs and grow without taking on heavy commercial debt.
“It ruins your public image.” With confidential arrangements like invoice discounting, your customers don’t even need to know you’re borrowing.

Invoice finance is a legitimate, well-regulated funding option for companies that sell goods or services on credit terms and regularly experience cash flow gaps.

How Much Does Invoice Finance Cost?

The cost of invoice finance depends on a number of factors, such as your specific provider, your customers’ payment terms (30 vs 90 days), and the Annual Percentage Rate (APR).

Providers usually charge between 1 and 5% of the invoice’s total value for a discounting or factoring facility. You may also pay a service fee, which is a flat percentage of your total gross turnover (0.5 to 3%). APR may be around 2% of the invoice’s total cost per 30 days.

Invoice discounting is usually slightly cheaper than invoice factoring, because you retain control of your collections process. Invoice finance generally costs more than a traditional bank loan because you’re paying for faster access to cash and more flexibility.

Additional costs can include monthly minimums, transaction transfer fees, and exit penalties. InvoiceWise is here to help you find the best deal possible with FCA-approved lenders.

Use our Invoice Finance Calculator to check how much you could receive.

Why Businesses Choose InvoiceWise

Looking for invoice finance? Let us do the heavy lifting, so you can get on with running your business. Tell us what you need, and we'll cut through the jargon and put the best offers right in front of you.

Safety

Your data is 100% secure every step of the way. All our lenders are overseen by the FCA and we operate with full data protection.

Fast Funding

Unlock cash from your unpaid invoices in as little as 24-48 hours, instead of spending weeks applying for a bank loan.

Low Rates

Our network of lenders provides low-interest invoice finance every day! Let us help you find the most competitive rates.

100s of Providers

We'll only match you with the top, most trusted lenders - there are hundreds to choose from, but we'll do the legwork.

Keeping Your Data Safe and Secure

Handing over your financial data requires absolute trust. We only ever partner with regulated UK lenders who treat your commercial information with total respect and strict data compliance.

Here’s what we guarantee:

FCA oversight. The Financial Conduct Authority oversees every lender in our network to ensure UK regulations are being followed at all times.
GDPR compliance: We adhere to all GDPR standards and regulations. Transparency forms the cornerstone of our invoice finance comparison service, so your data is 100% safe with us.
Secure technology: Every InvoiceWise interaction is backed by state-of-the-art encryption and data protection technology. We offer the best protection for ultimate peace of mind!