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
How does the invoice factoring facility work with BBF?
Your British Business Funding invoice factoring 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.
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.
The Best Invoice Factoring 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
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.
Commonly Asked Questions About Invoice Financing
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 financing keeps you in control of your sales ledger and collection efforts, resulting in lower administrative costs and fees compared to invoice factoring. UK invoice financing companies typically earn through interest and credit management fees, with interest rates ranging from 1.5% to 3% over the Bank of England base rate and credit management fees between 0.25% and 0.5% of turnover. These costs are comparable to traditional business funding options like overdrafts and loans. Register with us to receive a tailored quote for terms and costs that fit your business needs.
Can a small business use invoice finance?
Yes, invoice financing could be suitable if your annual turnover is at least £30,000 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.