Invoice Financing for UK Businesses
Need access to instant cash? No personal guarantees, no paperwork, no debt
Get set up in under an hour and then access 99% of your invoice value in minutes
Open-ended facilities available up to £250k
Turn Invoices into Instant Cash Flow
What is invoice finance?
Invoice finance is a way for businesses to release cash tied up in unpaid customer invoices rather than waiting for normal payment terms to end.
Once you have supplied your goods or services and raised an eligible invoice, an invoice finance provider can make an agreed percentage of its value available to you early. When your customer eventually pays the invoice, the facility is settled and any remaining balance is released, less the applicable fee.
For UK businesses trading on 30, 60 or 90-day payment terms, invoice financing can help bridge the gap between completing work and receiving payment.
Unlike a traditional business loan with a fixed lump sum and repayment schedule, the amount of funding available through invoice finance is linked to the value of your eligible unpaid invoices.
Accredited and registered. British Business Funding is a member of the National Association of Commercial Finance Brokers (NACFB) and the Financial Intermediary and Broker Association (FIBA). Registered in England, company number 12752630.
How does the invoice fianance facility work with BBF?
Your British Business Funding invoice finance facility is completely pay-as-you-go, with costs only incurred on what you use.
A straightforward discount fee per transaction is applied, calculated using a daily rate on the invoice value – for example, 0.06% daily, which amounts to 1.8% for a 30-day invoice.
That’s all there is to it.
The facility remains free whenever you don’t use it, and you’re free to stop using it at any time.
The Best Invoice Finance Facility
Fast – open a facility and advance invoices in minutes
Simple – no personal guarantee, no securities, no paperwork
Discreet – invisible to your clients
Flexible – large facility that grows with your business
Fair – one simple fee per transaction, no hidden fees
Convenient – available to use online 24/7, whenever you wish
What do you need to apply?
Eligible businesses are UK Limited companies or LLPs that have been trading B2B with commercial or public sector clients for over two years, have an annual turnover above £100k, can connect their business bank account via Open Banking, and hold a receivables portfolio not already pledged to another lender.
Instant capital in minutes, apply now!
Enhance cash flow and accelerate your growth with invoice financing. Complete an order, issue an invoice, and receive payment in 48 hours or less.
You can either keep control of your sales ledger or let the lender handle collections.
Access cash from unpaid invoices or borrow funds for necessary materials. Enjoy the flexibility to focus on growing your business instead of chasing payments.
What are the alternatives to an invoice finance facility?
Funding via
Business loans
Funding via
Purchase Order Finance
Funding via
Business Credit Cards
Funding via
Revolving Credit
Funding via
Merchant Cash Advance
Commonly Asked Questions About Invoice Financing
How does invoice financing work?
The exact process depends on the provider and type of facility, but invoice financing generally works in a few simple stages.
Your business first supplies goods or services to a customer and raises an invoice with agreed payment terms.
You then submit or select an eligible invoice through your invoice finance facility. The provider assesses the invoice and makes an agreed proportion of its value available to your business.
You can use the advance for normal business purposes such as paying suppliers, wages, VAT, purchasing stock or supporting growth rather than waiting for the customer to settle the invoice.
Depending on your facility, either your business continues to collect payment from the customer or the invoice finance provider manages the collection process.
When the customer pays, the amount advanced is settled with the provider. Any remaining balance is then made available to your business after the agreed invoice finance fee has been deducted.
This means your business receives access to much of the value of an invoice considerably earlier than it would by simply waiting for the customer’s payment terms to end.
What are the different types?
Invoice finance includes invoice financing (or discounting) and invoice factoring (or receivables financing), with options like selective invoice finance for specific accounts. The key difference is that with invoice financing, you retain control and are responsible for collecting invoices, while with invoice factoring, a third-party lender takes over collections. Invoice financing is confidential, whereas invoice factoring is typically known to your customers.
How much does invoice finance cost?
Invoice finance costs vary between providers and depend on factors such as your turnover, customer quality, invoice values, payment terms and the type of facility.
The facility available through British Business Funding uses a pay-as-you-go discount fee on invoices you choose to finance. For example, a daily rate of 0.06% would equal 1.8% over 30 days.
Other invoice finance providers may use different pricing structures, including separate service fees and discount charges. Your exact rate and terms will be confirmed before you proceed with a facility.
Can a small business use invoice finance?
Yes, invoice financing could be suitable if your annual turnover is at least £100,000 and you have invoice terms of 14 days or more. Key factors for approval include meeting the minimum turnover, having business-to-business (B2B) customers, invoice terms that align with lender criteria, a strong payment history, and your most recent set of accounts.
Can I use invoice financing with bad credit?
Probably. Invoice financing approvals depend mainly on the financial strength and payment history of your customers, as well as your invoice terms, rather than your personal credit. Lenders will typically review recent accounts and possibly bank statements to ensure your business is financially stable. Sole traders and some partnerships may have their personal credit reviewed, while limited companies are assessed based on their company credit ratings.
We partner with UK invoice finance companies that cater to borrowers with poor credit. Even if you’ve been declined for other loans, you might still secure funds through invoice financing. Register with us to discuss your funding options.
Will my customers know I'm using invoice finance?
Not necessarily.
With confidential invoice discounting, your business can normally continue communicating with customers and collecting invoices in the usual way, so the finance arrangement may remain undisclosed.
With invoice factoring, the provider generally takes a more active role in credit control and collecting invoices. Customers are therefore usually aware that a factoring company is involved and may be instructed to make payment to an account controlled by the provider.
There are variations between lenders, so if maintaining a confidential arrangement is important to your business, this should be established before choosing a facility.