Quick answer (TL;DR)

• UK Business Loans can introduce you to lenders and brokers offering invoice finance for contractors delivering fit-outs.
• We act as an introducer only — we do not lend or provide regulated advice. Submitting an enquiry is not an application; it helps us match you.
• Typical process: 2‑minute enquiry → match to 2–4 suitable partners → lenders/brokers contact you with indicative terms (often within 24–72 hours).
• If you’re a limited company or LLP working on staged fit-outs and need cash to pay suppliers or cover labour, invoice finance is a common solution for facilities from around £10,000 upwards.

What is invoice finance for a fit-out project?

The basics (for non-finance readers)

Invoice finance converts unpaid invoices into immediate working capital. Instead of waiting 30–120+ days for a client to pay, a lender advances a percentage of the invoice value (the advance rate). When the client pays, the lender returns the remaining balance less fees (the discount or factoring fee). Main types are:

• Factoring: The financier manages collections and the client is usually notified that payments should go to the factor.
• Invoice discounting: Confidential — you retain control of collections and your clients may not be aware.
• Selective or spot invoice finance: Fund individual invoices or batches rather than your entire ledger — useful for one-off fit-out contracts.

Fit-out specific points

Fit-outs often involve staged works, supplier invoices for materials, retention clauses and delayed client payments — which can squeeze cashflow. Invoice finance is commonly used to:

• Pay suppliers and subcontractors promptly.
• Cover material purchases and wages during project delivery.
• Bridge the gap where a client pays only at stages or with retention periods.

How UK Business Loans helps — our role and process

We introduce you to lenders and brokers (no cost, no obligation)

UK Business Loans connects businesses with lenders and brokers experienced in construction and fit-out invoice funding. We do not provide funds or regulated financial advice — we simply introduce you to providers who can help. Our service is free to use and signing up is not an application; it’s a way for us to find the best matches for your case.

Typical process:

1. Complete a short enquiry (about 2 minutes).
2. We match your requirements to a small panel of lenders/brokers who specialise in construction and fit-outs.
3. Selected partners contact you with indicative terms and documentation requests (often within 24–72 hours).
4. If you accept an offer you’ll complete lender paperwork and draw down funds once the facility is in place.

What you’ll receive from introduced lenders

Lenders or brokers will typically provide:

• Indicative advance rates and fee ranges.
• A list of required documents and minimum facility size (many providers work from roughly £10,000 upwards).
• Estimated turnaround times for set-up and first drawdown.

Get Started — Free Eligibility Check (No obligation; your enquiry helps us find the right lenders/brokers.)

Who can use invoice finance in a fit-out (common scenarios)

Principal contractors managing a fit-out for a client

Principals use invoice finance to fund materials and labour between invoice issue and client payment or retention release. It keeps projects moving without tapping overdrafts or owner funds.

Subcontractors delivering part of a fit-out

Subcontractors can use selective invoice finance to fund specific invoices tied to a larger fit-out. Lenders will review who the payer (debtor) is — strong payer credit improves terms.

Clients, landlords and assignment of invoices

Clients rarely take invoice finance on behalf of contractors. More common is a contractor assigning invoices to a funder; sometimes lenders require client acknowledgement of assignment. This is usually straightforward but should be discussed early in the process.

Practical tip: ensure your contract terms, invoicing and proof of delivery are clear — lenders will look for enforceable invoices and a transparent chain of supply.

For other fit-out funding options, read more about our fit-out finance services on our dedicated fit-out finance page: fit-out finance.

Costs, fees and how pricing usually works

Typical fee components

• Advance rate: usually 70–90% depending on debtor credit and sector.
• Discount/factoring fee: typically 1.5–3% per month (varies by risk and product).
• Set-up or arrangement fees: one-off charges in some facilities.
• Admin fees: management, statement or minimum monthly fees.
• Reserve: a held amount to cover disputes or bad debts.

Worked example

Invoice: £100,000. Advance 80% = £80,000 upfront. Fee 2%/month and the client pays in 60 days (2 months). Fee = 4% of £100,000 = £4,000. Reserve returned = £20,000 − £4,000 = £16,000. Net funds received by business = £96,000 (£80,000 + £16,000).

Alternatives and when invoice finance is best

Alternatives include bridging loans, supplier finance, retentions funding and traditional bank facilities. Invoice finance is usually best when cash is tied to creditworthy payers and you need ongoing access to working capital rather than one-off short-term borrowing.

Compare lenders — Get a fast quote

Eligibility, paperwork & common underwriting points

While each lender has its own criteria, common checks include:

• Business structure: typically limited companies and LLPs (we do not assist with sole trader funding on this page).
• Minimum trading history: often 6–12 months; many lenders prefer longer trading histories for larger facilities.
• Debtor quality: who pays the invoices and their credit strength.
• Debtor concentration: high concentration (one or two major payers) can increase fees or limit advance rates.
• Contracts and evidence of work: signed contracts, delivery notes, valuations and approvals.

Documents lenders typically ask for

• Sample invoices and contract copies.
• Company accounts and management accounts.
• Business bank statements.
• Proof of delivery, photographs or site sign-offs.
• Details of the payer (client) and any retention clauses.

How to improve your chances

• Secure client acknowledgement of assignment where possible.
• Break invoices into staged claims that match contract milestones.
• Keep clear, signed site records and timely invoicing.
• Reduce debtor concentration by diversifying clients where feasible.

Pros, cons & risks — honest assessment

Benefits

• Immediate cashflow to keep fit-outs on schedule.
• Ability to take multiple jobs without tying up capital.
• Pay suppliers and staff on time — reduce delay penalties.

Downsides & risks

• Costs can be higher than a low-rate bank loan if invoices take long to collect.
• Some clients must be notified or give consent for assignment.
• Recourse factoring means you remain liable if a client doesn’t pay; non-recourse is available but more costly.
• Contractual terms (retentions, disputed invoices) can reduce available advance.

Bottom line: invoice finance can be a powerful short- to medium-term working capital tool for fit-outs — but compare alternatives and pricing carefully.

Step-by-step: How to obtain invoice finance for your fit-out via UK Business Loans

1. Prepare key details: value of invoices, contract length, client details and anticipated payment terms.
2. Complete our short enquiry form (takes ~2 minutes): Get Quote Now — Free Eligibility Check.
3. We match you to 2–4 suitable lenders or brokers who specialise in construction and fit-outs.
4. Partners contact you with indicative terms and a documentation request.
5. Review offers, choose a partner and complete their paperwork.
6. Once the facility is set up, draw down funds and proceed with the project.

Note: Submitting an enquiry is not a loan application — it’s a quick way for us to connect you to the right providers.

Frequently asked questions

Can UK Business Loans itself provide invoice finance?

No. UK Business Loans acts as an introducer only. We match you to lenders and brokers who provide invoice finance; any funding decisions and contract terms come from those providers.

Will submitting an enquiry affect our credit score?

No. Making an enquiry through UK Business Loans will not affect your credit score. Lenders may perform credit checks later with your consent if you progress with an application.

Do clients need to be notified if we use invoice finance?

Often yes. Some products require assignment and client notification; others (invoice discounting) can be confidential. Your chosen lender will advise.

How quickly can I get funds?

Once a facility is agreed, final set-up and first drawdown can often happen within 24–72 hours, depending on the lender and documentation speed.

Can invoice finance cover retentions?

Some lenders offer retention funding or retentions guarantees, but these usually need additional security and proof of eventual release. Discuss specifics with introduced partners.

Next steps & compliance note

Ready to explore invoice finance for your fit-out? Complete our brief enquiry and we’ll match you to lenders and brokers who can provide tailored terms and next-step guidance. Start your free eligibility check — no obligation.

Important: UK Business Loans is an introducer. We do not lend money or provide regulated financial advice. Your details are shared only with selected finance partners to help match you to appropriate lenders or brokers. Lenders/brokers will provide full terms, conditions and any required checks.