Short answer — do I qualify?

Usually yes, if you are a UK‑registered Limited company or an LLP that issues invoices to creditworthy customers and can provide recent company records and bank statements. The most important factors are who owes you money (debtor quality), how long you’ve been trading, and the volume/value of outstanding invoices. Many lenders work with companies and LLPs from first year of trading, but others prefer 6–12 months’ trading and a turnover threshold. If your funding need is from around £10,000 upwards, you’re within the typical range invoice funders cover. Want to check now? Get a Free Eligibility Check and receive tailored matches to lenders and brokers who specialise in your sector: Get Quote Now.

What is invoice finance?

Invoice finance (also called debtor finance or debtor factoring) unlocks the cash tied up in unpaid invoices. Instead of waiting 30–120 days for customers to pay, a funder advances a proportion of each invoice and collects the debt from your customers (factoring) or leaves you to collect while providing the cash and admin support (discounting).

Key variants:

• Invoice factoring: the funder typically handles collections and credit control and advances up to around 70–90% of the invoice value.
• Invoice discounting: you keep control of collections; the funder advances against the invoice ledger, usually more confidential to your customers.
• Selective / spot factoring: finance for specific invoices only, useful if you have mixed debtor quality.

Funds are usually released quickly (often within 24–48 hours of verification) and advance rates and fees depend heavily on debtor credit risk and industry. For a practical overview and options, explore our invoice finance section — invoice finance.

Who can apply: Limited companies vs LLPs

UK Limited Company — typical eligibility

Most invoice finance providers accept UK limited companies that can show:

• Registration at Companies House and correct company details.
• Trading invoices issued to credible customers (UK or international) — ideally with a record of on‑time payments.
• Trading history: many funders prefer 6–12 months’ trading, but specialist funders may work with younger businesses if the debtor risk is strong.
• Minimum funding size: many funders work from around £10,000 of monthly invoice value or higher; smaller invoice volumes are possible with specialist providers but may cost more.
• No recent company insolvency events; adverse director history may be considered but not always an automatic disqualifier.
• Acceptable debtor concentration — fewer than a very high proportion of invoices owed by a single customer unless that customer is a large, very creditworthy business or public sector body.

Typical evidence required: recent Companies House filing, 3–12 months of invoices, company bank statements, debtor ledger and contracts, IDs for directors.

LLP (Limited Liability Partnership) — typical eligibility

LLPs are treated broadly the same as limited companies by most invoice funders. Lenders will look at:

• LLP registration documents and confirmation of trading status.
• Trading history, turnover and clear invoicing to third‑party customers.
• Partner credit history — personal guarantees may be requested in some cases, depending on the lender and the security package required.
• Industry specifics — for example, professional firms or contractors with retentions may face different underwriting terms.

What invoice‑finance lenders look for

Underwriting is primarily about the debtors (the businesses who owe you money). Funders evaluate several practical items:

• Debtor quality: public sector and large corporate debtors carry low risk. Small or unproven buyers raise fees and reduce advance rates.
• Debtor concentration: if one customer represents a very large share of your ledger, lenders price this higher or limit exposure.
• Invoice status and disputes: invoices that are contested, part‑paid or subject to long disputes reduce eligibility.
• Contract type: recurring contracts or long-term purchase orders are attractive; one‑off project invoices can still be funded but may be assessed more closely.
• Industry risk: sectors with retentions (construction) or slow public sector payments may need tailored solutions.
• Company and partner/director history: insolvency, CCJs, or repeated late filing can be an issue, though specialist lenders often consider mitigations.
• Security & guarantees: some funders require a debenture or personal guarantees for higher limits or where additional security is needed.

If you are unsure about how your industry or debtor profile will be treated, Get Quote Now — Free Eligibility Check and we’ll match your business to lenders or brokers who specialise in your sector.

Documents lenders commonly ask for

When you submit an enquiry, being prepared speeds up assessment. Typical documentation includes:

• Recent Companies House extract and confirmation of company officers/partners.
• Management accounts or profit & loss statements (3–12 months).
• Company bank statements (usually 3–6 months).
• Copies of the invoices you want to fund and a debtor ledger.
• Signed customer contracts or purchase orders where available.
• Proof of ID for directors/partners and proof of address.

Tip: prepare a simple debtor list showing customer names, invoice values and due dates — lenders use this to estimate advance rates and fees quickly.

If you don’t meet standard eligibility — alternatives

If traditional invoice finance isn’t available, options include:

• Selective or spot factoring: fund only the strongest invoices or customers.
• Specialist lenders: some funders take on higher‑risk ledgers for higher fees.
• Other funding types: business loans, asset finance, merchant cash advances or purchase order finance may fit depending on needs and security.
• Invoice insurance: can improve terms if debtor risk is the main concern.
• Using a broker: brokers can source niche funders that underwrite marginal cases.

Even if initial applications are declined, being introduced to the right lender via a broker often opens other possibilities. Start with a quick enquiry: Get Quote Now — Free Eligibility Check.

Costs, terms & what to expect

Invoice finance pricing varies by debtor risk, industry and the funder’s service level. Typical elements include:

• Discount rate / finance charge: often quoted as a monthly or annualised percentage (example: 0.5%–3% per month depending on risk).
• Service and admin fees: monthly or per‑invoice fees for ledger management and collections.
• Advance rate: how much you receive up front — typically 70–95% depending on debtor quality and product.
• Set‑up and exit fees: some agreements include one‑off onboarding fees or notice periods.

Example mini-case:

Invoice value: £10,000. Advance: 85% = £8,500 immediately. Fee: 1.5% flat (on invoice) = £150. Reserve (remaining) £1,350 payable when invoice settles (minus any additional fees). Actual pricing will vary — always compare quotes.

All terms vary by provider; our role is to help you compare real offers so you can choose the most appropriate deal. Get Quote Now to receive tailored quotes from lenders and brokers.

How UK Business Loans helps

We make the search fast and simple:

1. Complete a short enquiry detailing your company type, turnover band and monthly debtor balance.
2. We match you to lenders and brokers who specialise in companies/LLPs like yours and in your sector.
3. Partners contact you with quotes and next steps — you compare and decide. There’s no obligation to proceed.

Our service is free to use and designed to save you time and increase your chances of finding suitable invoice finance, from £10,000 upwards. Ready to see your likely options? Get Quote Now — Free Eligibility Check.

Frequently asked questions

Can a start‑up limited company get invoice finance?

Yes — some funders will consider start‑ups if your invoices are to creditworthy customers or you have strong contract evidence. Specialist funders and brokers can help place younger businesses.

Does the location of my debtors matter?

Yes. UK and major international corporate or public sector debtors are seen as lower risk. Export invoices can be funded but may attract higher fees or require export factoring and additional checks.

Will applying affect my credit file?

Submitting an enquiry through UK Business Loans does not affect your credit file. Lenders may perform credit checks only if you proceed with their application.

Do lenders require personal guarantees?

Sometimes. Many invoice finance deals are secured against the debtor ledger only, but some lenders may ask for director or partner guarantees or a company debenture for larger facilities.

How quickly can I get funds?

Once approved, advances are often made within 24–48 hours of invoice verification. The overall time to approval depends on the completeness of documentation and the lender’s onboarding process.

Trust & compliance

UK Business Loans introduces companies and LLPs to finance brokers and lenders; we are not a lender and we do not provide regulated financial advice. We handle your details securely and only share them with selected partners to obtain quotes for you. See our Privacy Policy and Terms for full details.

Start a free eligibility check

Ready to find out if you qualify and get matched to lenders who can help? Complete a short enquiry (it takes under two minutes) and receive no‑obligation quotes. Get Quote Now — Free Eligibility Check.

If you prefer to talk, call us on 020 7XX XXX XXX and ask for an invoice finance specialist.