Invoice finance for UK businesses — industries we support
Summary: Invoice finance (factoring and invoice discounting) helps trading businesses release cash tied up in unpaid invoices so they can pay staff, buy stock, meet seasonal demand or take new contracts. UK Business Loans introduces businesses (from £10,000 lending amounts upwards) to specialist lenders and brokers who understand sector-specific needs. Our service is free and no obligation — submit a short enquiry to compare quotes. Get a Free Eligibility Check
Important: UK Business Loans is not a lender and does not provide finance itself. We introduce businesses to lender and broker partners who may provide terms. The enquiry form is for matching purposes only — it is not an application.
Quick snapshot — what is invoice finance?
Invoice finance lets companies unlock working capital by borrowing against unpaid trade invoices. Typical products are invoice factoring (the funder manages collections and advances a percentage of each invoice) and invoice discounting (you retain credit control; funding is confidential). Most businesses can access funds within 24–72 hours of a funder approving the facility.
- Who it’s for: UK limited companies and trading businesses with business-to-business (B2B) invoices.
- Typical funding size: we help businesses seeking facilities from around £10,000 and upward.
- Common uses: payroll, materials, seasonal stock, contract delivery and growth.
How invoice finance works
Factoring vs invoice discounting
With factoring a funder buys or lends against your invoices and (usually) takes responsibility for chasing payment. This is visible to your customers unless a confidential (disclosed) arrangement is agreed. Invoice discounting is typically confidential — you keep control of collections while the lender advances funds against invoices.
Types of invoice finance
- Spot factoring — fund individual invoices as needed.
- Selective / invoice-by-invoice — choose which invoices to fund.
- Whole ledger / confidential invoice discounting — facility covers all or most invoices.
- Retention financing & progress claim funding — common in construction where staged payments and retentions exist.
Flow (simplified): invoice issued → funder advances a percentage (commonly 70–90%) → customer pays the invoice to the funder or to you (depending on product) → final balance after fees is released.
Which UK industries we support
UK Business Loans matches each sector to lenders and brokers who specialise in that area. Most invoice finance funders support standard trade invoices from UK and creditworthy international debtors. Below are the sectors we commonly place and the typical lender considerations.
Construction & subcontractors
Use cases: funding staged claims, bridging retentions, buying materials and paying labour. Lenders often accept progress claims and can provide retention financing. Underwriting focuses on contract terms, client (employer) credit, and payment certification processes. Get a quote for construction invoice finance
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
Complete Our 1-Minute Enquiry Form Now – Get a No-Obligation Quote
Manufacturing & engineering
Use cases: purchase of raw materials, funding production runs and delivering large orders. Lenders look at order book visibility, supplier terms and debtor credit strength — recurring or contract invoices score well.
Wholesale & distribution
Use cases: stock purchases, seasonal peaks and supplier settlement. Funders favour predictable order cycles and established customer relationships; high debtor concentration is reviewed but not always disqualifying.
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
Logistics, haulage & transport
Use cases: fuel, vehicle maintenance and driver payroll while awaiting invoices. Many funders understand the sector’s cashflow patterns and can fund invoices tied to logistics contracts and carriers.
Recruitment & staffing agencies
Use cases: payroll funding for temporary staff and umbrella payments. Recruiters are frequent users — specialist funders handle PAYE and umbrella models, and they review timesheet and payroll records during underwriting.
Professional services (B2B)
Use cases: smooth cashflow for consultancies, marketing, legal or accountancy firms that invoice other businesses. Lenders typically look for clear engagement letters, WIP (work in progress) and client credit profiles.
Healthcare, care homes & medical suppliers
Use cases: equipment, agency pay and renovations. Public-sector or NHS-related invoices may require longer payment profiling and sometimes specialist funders who understand public procurement terms.
Hospitality, hotels, restaurants & catering
Use cases: seasonal gaps, refurbishments and bulk supplies. Some funders specialise in hospitality and seasonal trading patterns; clear debtor profiles and turnover history help applications.
Complete Our 1-Minute Enquiry Form Now – Get a No-Obligation Quote
Retail & e‑commerce (B2B sales)
Use cases: wholesale invoices, supplier terms and marketplace payments. Funders assess channels (wholesale vs consumer sales) and how invoices are issued to other businesses.
Food & drink production / wholesale
Use cases: seasonal peaks, purchasing raw ingredients and packing/distribution costs. Lenders consider seasonal cycles and debtor mix (supermarkets, wholesalers, foodservice).
Creative, media & advertising agencies
Use cases: campaign spend, subcontractor payments and talent fees while invoices are unpaid. Recurring retainer invoices and strong client lists improve eligibility.
IT, software & technology (B2B)
Use cases: funding projects, retainers and licence deliveries. Recurring or contract-based invoices are preferred; one-off project invoices can be funded if debtor strength is clear.
Agriculture & farming (B2B)
Use cases: seasonal working capital for inputs, equipment and processing contracts. Lenders that specialise in agri supply chains can consider processor or wholesaler invoices.
Charities, non-profits & social enterprises
Use cases: gap funding between delivery and payment for commissioned services or traded income. Some funders will consider grant-related receivables or contracts with public bodies — specialist review often required.
Public sector contractors & suppliers
Use cases: funding contract invoices to government or local authorities. Lenders may require contract documentation, POs and proof of service acceptance before providing a facility.
Many lenders offer tailored solutions such as selective factoring, retentions financing and contract-based advances. If you’re unsure which product suits your business, Get a Free Eligibility Check and we’ll match you to the right partners.
For a deeper product overview see our dedicated invoice finance guidance at invoice finance.
Industries commonly excluded or needing specialist underwriting
Some sectors are harder to place or need specialist funders. Examples include:
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
- Gambling and adult services
- High-risk crypto businesses or speculative commodities
- Certain property development activities (not standard trade receivables)
- Businesses with largely non‑trade receivables (e.g., personal loan receivables)
If your industry is borderline, submit an enquiry — we’ll tell you which funders may consider it and what extra information is needed.
Typical eligibility & documentation
Every funder has its own criteria but common requirements include:
- Minimum trading history (often 6–12 months)
- Recent VAT returns and business bank statements
- Copy invoices, purchase orders and proof of delivery/acceptance
- Debtor profile and concentration details (largest debtor %)
- Company registration details and director ID documents
Lenders may perform debtor credit checks and KYC/AML checks. Submitting an enquiry via UK Business Loans is not a hard credit application; it’s used to match you to suitable partners. Free eligibility check — no hard credit search
Costs, terms and structure
Costs vary by lender, sector and the risk profile of your debtors. Main components include:
- Advance rate — the % of invoice value advanced upfront (commonly 70–90%).
- Discounting fee / factoring margin — a percentage charged on the invoice value (often quoted monthly or as an annualised percentage).
- Facility fees — set-up, administration or renewal fees.
- Interest on reserves or outstanding balances in some structures.
Invoice discounting is typically confidential (no customer notification); factoring can be disclosed. Exact pricing depends on debtor strength, facility size and volume. For tailored pricing, Get Quote Now.
How UK Business Loans helps
Our process is designed to be quick and simple:
- Complete a short enquiry form (takes a few minutes).
- We match your business to lenders and brokers specialising in your sector.
- Selected partners contact you with tailored quotes and next steps.
- Compare offers and decide — there’s no obligation to proceed.
We only introduce businesses to lenders and brokers; we do not provide funds directly. Our service is free and designed to save you time and increase the chance of a good outcome. Start your Free Eligibility Check
Frequently asked questions
What industries can use invoice finance?
Most trading B2B industries can use invoice finance, including construction, manufacturing, wholesale, recruitment, logistics, professional services, healthcare, hospitality and retail. Specialist sectors may need bespoke funders.
How quickly can I get funds?
Many lenders can advance funds within 24–72 hours of approval; initial underwriting times vary by sector and required checks.
Will invoice finance affect my customer relationships?
Depends on the product. Invoice discounting is usually confidential; factoring can involve the funder contacting customers unless confidential factoring is arranged.
Is invoice finance suitable if I have a single large debtor?
Yes, but lenders will assess debtor creditworthiness and concentration risk. Some funders specialise in single‑debtor facilities.
How much does invoice finance cost?
Costs vary by lender, advance rate and debtor strength. Expect a combination of advance rates, discounting fees, and possible facility fees. Get tailored quotes to compare.
Does applying affect my credit score?
Submitting an enquiry via UK Business Loans does not affect your business credit score. Lenders may carry out checks later if you progress an application.
Who can apply?
Limited companies and trading businesses that issue B2B invoices are generally eligible. We do not handle sole trader or professional-only loan enquiries.
Are you a lender?
No — UK Business Loans is an introducer. We connect businesses to lenders and brokers who provide finance offers. Submitting an enquiry is free and not an application.
Ready to get started?
If your business issues invoices and you need working capital, we can match you to specialist lenders and brokers quickly. Complete a short enquiry and you’ll typically hear back from partners within hours.
Get a Free Eligibility Check — it’s fast, free and no obligation.
Related pages
- Home
- Get a Quote / Enquiry
- Invoice finance (detailed guide)
- Asset finance (see site navigation)
- Commercial finance (see site navigation)
1. What is invoice finance and how can it help my UK business? — Invoice finance (invoice factoring and invoice discounting) lets UK businesses unlock cash tied up in unpaid B2B invoices so you can pay staff, buy stock, meet seasonal demand or take new contracts.
2. What’s the difference between invoice factoring and invoice discounting? — Factoring usually involves the funder managing collections (and may be visible to customers), while invoice discounting is typically confidential and keeps credit control with you.
3. Which UK industries can use invoice finance? — Most trading B2B sectors can use invoice finance, including construction, manufacturing, wholesale, logistics, recruitment, professional services, healthcare, hospitality, retail and more, with some specialist funders for niche sectors.
4. How quickly can I access funds with invoice finance? — Many funders can advance funds within 24–72 hours of approving a facility, though initial underwriting times vary by sector and complexity.
5. How much funding can I get with invoice finance? — Facilities typically start from around £10,000 and upwards, with the available amount driven by your ledger size, debtor strength and the funder’s advance rate.
6. Will my customers be notified if I use invoice finance? — It depends: invoice discounting is usually confidential, factoring can be disclosed unless you arrange confidential/disclosed factoring with the funder.
7. What does invoice finance cost and how is pricing structured? — Costs vary but commonly include an advance rate (70–90% advance), a discounting/factoring margin, and facility or administration fees, all depending on debtor risk and facility size.
8. What documents and eligibility criteria do funders usually require? — Typical requirements include 6–12 months trading history, recent VAT returns and business bank statements, invoices, purchase orders/proof of delivery, debtor profiles and company/director ID documents.
9. Are any industries excluded or needing specialist underwriting? — Some sectors (eg gambling, certain crypto or speculative commodity businesses, non‑trade receivables and some property development activities) are harder to place and may need specialist funders or extra information.
10. Is submitting an enquiry via UK Business Loans an application or does it affect my credit, and are you a lender? — Submitting an enquiry is a free, no‑obligation matching request (not a loan application), it does not perform a hard credit search, and UK Business Loans is an introducer that connects you to specialist lenders and brokers rather than lending directly.