What is invoice finance and why speed matters

Invoice finance lets you unlock cash tied up in unpaid invoices so you can pay suppliers, staff or take a new opportunity without waiting for customers to pay. Main types are invoice factoring (a lender manages or chases debtor payments), invoice discounting (you retain control of collections) and spot/one-off factoring (sell single invoices for fast cash). For many UK businesses the difference between getting paid in 24 hours or weeks can determine whether a job goes ahead, payroll is met or a seasonal opportunity is seized.

The short answer: typical timescales by product

• Spot factoring / one-off invoice purchase: 24–72 hours once due diligence and debtor checks are complete. Ideal for one-off cash needs.
• Invoice factoring (ongoing): 24–72 hours after each invoice is uploaded and approved; initial facility setup 1–3 weeks for new customers.
• Invoice discounting (confidential): If you already have a facility, drawing down can be 48 hours to 7 days; new setups usually 1–3 weeks.
• New long-term facility (first-time users): 1–3 weeks. This covers KYC, trading checks, credit assessments and contracts.
• Platform/fintech marketplace finance: Same-day to 48 hours in many cases — verification speed varies by platform.

These are typical ranges — exact times depend on documentation, debtor credit checks and the provider’s onboarding process.

What determines how fast you get paid?

Speed depends on a mix of product choice, paperwork and the parties involved. Key factors:

• Product type: Spot factoring is fastest; full facilities need more setup.
• Existing facility: If you already have an active facility with a provider, subsequent draws are much quicker.
• KYC / Anti‑money‑laundering checks: Essential and can take from a few hours to several days depending on responses.
• Debtor creditworthiness: Lenders assess your customers’ ability to pay; high-risk debtors slow approval.
• Debtor notification / approval: Factoring where debtors must be informed or authorised can add time; confidential discounting avoids this delay.
• Invoice quality: Clean invoices with clear terms, correct contacts and confirmed delivery speed up the process.
• Industry sector: Certain sectors (e.g., construction with retentions) require extra checks.
• Lender processing times and working hours: Weekends, holidays or manual underwriting create delays; digital providers are faster.

Quick tip: Have your last three months’ sales ledger and basic company documents ready to accelerate approval.

Step-by-step timeline: from enquiry to funds

1. Enquiry & pre-screening (minutes–hours): Complete a short enquiry form so we can match you to suitable lenders and brokers. This is not an application.
2. Lender/broker contact (same day–48 hours): A matched partner will request documents and confirm product options.
3. KYC & credit checks (24 hours–5 days): ID for directors, company verification and debtor credit checks occur here.
4. Contract and account setup (same day–3 days): E-signatures speed this up; some providers require bank mandate or portal access.
5. Invoice submission & approval (same day–72 hours): Upload invoices to the provider portal; approval times vary by debtor checks and product.
6. Funds release (same day or next working day): Advance (commonly 70–90% of invoice) is paid once an invoice is approved.

Get Quote Now — Free Eligibility Check — tell us about your invoices and we’ll match you with partners who can outline realistic timelines for your case.

How to get money faster — actionable checklist

Prepare these items to speed up approval:

• Director ID and proof of address (photographic ID and household utility or bank statement).
• Company registration documents (certificate of incorporation, shareholder structure).
• Recent bank statements (usually 3 months).
• Sales ledger or list of outstanding invoices (include invoice dates, due dates and debtor contact details).
• Copies of invoices and underlying contracts or delivery notes where relevant.
• Clear debtor contact details and invoice payment terms.
• Agree to e-signatures and quick email replies to remove avoidable delays.

Need cash urgently? Consider fintech spot factoring via marketplace platforms for same‑day or next‑day funding. Start your free enquiry.

Costs vs speed: what to expect

Faster funding commonly comes at a higher price. Providers charge in different ways:

• Discount/finance rate: percentage charged on the invoice value for the time the facility funds are used.
• Advance rate: the % of an invoice paid upfront (typically 70–90%).
• Fees: setup/arrangement fees, monthly service fees, debtor management fees (for factoring).

Example: sell a £10,000 invoice with 85% advance. You receive £8,500 quickly. When the debtor pays, you get the remaining £1,500 minus fees and interest. Exact figures vary — always check the lender’s terms.

All figures are illustrative — full terms come from lenders. Submitting an enquiry is free and not an application.

Who invoice finance suits & when faster options are best

Invoice finance is useful for limited companies and growing SMEs that need working capital. Typical use cases include:

• Seasonal businesses needing stock or staffing ahead of peak.
• Businesses tendering for work and needing cash to start projects.
• Companies with strong sales but slow-paying customers.
• Firms expanding and who want predictable cashflow without taking on extra long-term debt.

Use spot factoring for one-off urgent needs; choose a facility (factoring or discounting) if you need ongoing working capital. UK Business Loans can match you to providers offering suitable options for sums from around £10,000 upwards.

Trust signals, how we work and a short disclaimer

We match your enquiry with experienced brokers and direct lenders. UK Business Loans is an introducer — we do not lend money or offer regulated financial advice. Our service is free to businesses and submitting the enquiry form is not an application. Matches we make may be with partners who are regulated; check each lender’s terms before proceeding.

This financial promotion aims to be fair, clear and not misleading. All finance offers are subject to status and lender checks. Completing our form will not affect your credit score; lenders may do checks later if you proceed.

Frequently asked questions

Will checking my eligibility affect my credit score?

No. Completing an enquiry through UK Business Loans does not affect your credit file. Lenders may carry out credit checks later if you apply with them.

Can I use invoice finance for customers based outside the UK?

Some providers fund invoices for overseas debtors but terms vary by debtor country and risk. Tell us where your customers are in your enquiry so we can match you with suitable partners.

How quickly will a lender contact me after I submit the form?

Often within hours during business days; sometimes the same day. Response times depend on lender working hours and the details provided in your enquiry.

What documents are required to get started?

Basic ID for directors, company registration, recent bank statements and your sales ledger/invoices. Having these ready reduces delays.

Are there industries that cannot use invoice finance?

Some sectors deemed higher risk (e.g., certain international trade lines or businesses with very concentrated debtor risk) may find fewer options, but many providers specialise in niche sectors — tell us about your industry in the enquiry.

Get started — quick, free and no obligation

Complete a short form (around 2 minutes) and we’ll match you with lenders and brokers who can provide a tailored timeline and quote. We only introduce businesses to partners best placed to help; submitting your enquiry is free and not an application.

Get Quote Now — Free Eligibility Check

UK Business Loans arranges funding solutions for businesses seeking £10,000 and up. For general business finance options see our page on business loans.