Can I fund aged debt with invoice finance?

Quick summary: Sometimes — many lenders and brokers we introduce will consider funding aged invoices, but acceptance depends on the debtor’s credit, how old the invoice is, supporting documents and the type of facility. Older invoices usually attract lower advance rates and higher fees, and some providers will only fund them on recourse or with extra security. Start with a free eligibility check so we can match you to providers experienced in funding aged receivables.

TL;DR — short answer

Short answer: sometimes. Some of the lenders and brokers UK Business Loans introduces will fund aged debt, but it varies by provider. Older invoices often carry higher cost or require extra checks, and a single provider’s appetite will depend on debtor strength, days overdue, and supporting evidence. For a tailored answer, complete a quick Free Eligibility Check so we can match you to the right specialist.

What is invoice finance? A quick primer

Invoice finance is a way to unlock cash tied up in unpaid invoices. Instead of waiting for customers to pay, a finance provider advances you most of the invoice value up front and collects the debtor payment later (or the debtor pays you and you repay the facility). It’s commonly used by limited companies to manage working capital, meet payroll, buy stock or bridge seasonal gaps.

Common approaches include factoring (the funder manages collections), invoice discounting (confidential funding) and spot/single-invoice finance (one-off funding). UK Business Loans connects businesses to brokers and lenders who specialise in these options.

What is “aged debt” vs “new invoice”?

“New invoices” are recent sales invoices within normal payment terms (e.g., issued within 30 days or to be paid in 30/60 days). “Aged debt” means invoices that are past their due date — commonly thought of as 60, 90, 120 or 180 days overdue depending on context.

Example: an invoice issued 10 days ago with 30-day terms is a new invoice. An unpaid invoice that’s 150 days past its due date is aged debt. Each lender sets its own thresholds for what it will accept.

Do the providers we introduce fund aged debt?

Yes — some do, but not all.

• UK Business Loans is an introducer: we don’t lend, we match you with lenders and brokers who may fund aged invoices.
• Some specialist factors and spot funders will buy older invoices where the debtor is financially strong and documentation proves the sale and delivery.
• Other providers only take on newer invoices or require a broader pool of invoices to operate a facility.

Typical outcomes you can expect from a provider that accepts aged debt:

• Lower advance rates (the percentage of invoice value you get up front).
• Higher fees or discount rates to cover increased risk.
• Funding on recourse terms or with additional security/guarantees.
• Decline of invoices that are disputed, have weak debtor credit, or are extremely old (e.g., 12+ months).

To identify providers that specialise in aged receivables, start a Get Quote Now — Free Eligibility Check and we’ll match you quickly.

Types of invoice finance and how each treats aged invoices

Invoice factoring

Factoring providers often manage collections for you. Many factors will consider aged invoices if the debtor is a recognised business with a strong payment record. Expect lower advance rates and higher fees the older the invoice is. Some factors specialise in buying overdue debt — especially when it’s not disputed and documentation is robust.

Invoice discounting

Discounting is usually confidential and aimed at ongoing pools of invoices. Discounters typically prefer newer receivables and steady, predictable turnover rather than very old, isolated invoices. Funding for aged items is possible but less common unless the debtor credit is excellent and the facility terms are adjusted.

Spot factoring / single-invoice finance

Spot funders are designed for one-off requirements and can be the quickest route to cash on an aged invoice. They will focus heavily on the debtor’s credit and the strength of paperwork; a blue-chip debtor increases the chance of acceptance.

Selective facilities and blended solutions

Some brokers arrange selective or blended arrangements that allow funding of certain aged invoices at different rates within a broader facility. Specialist brokers in our network can negotiate these blended terms to suit your needs.

Recourse vs non‑recourse

Non‑recourse (credit risk on the funder) is rare for aged invoices because the funder bears greater risk. Where non‑recourse is offered, it typically requires strong debtor credit, insurance or other mitigations.

For more detail on invoice funding options, see our wider invoice finance resources.

Typical lender criteria for funding aged debt

Providers will usually consider a combination of the following:

• Invoice age limits: many accept up to 120–180 days; some specialist funders will go beyond that for strong debtors.
• Debtor creditworthiness: large corporate or public sector debtors are more likely to be funded.
• Supporting evidence: signed contracts, delivery notes, acceptance certificates and correspondence showing no dispute.
• Company profile: your trading history, turnover and previous dealings with the debtor.
• Security and guarantees: older invoices often require additional security, personal guarantees or a higher reserve.
• Dispute or insolvency checks: lenders will decline invoices with active disputes or debtor insolvency concerns.

Advance rates for aged invoices are typically lower (for example, 50–70%) and fees higher compared to fresh invoices. Expect lenders to explain costs clearly before any agreement.

Practical steps to get aged invoices funded

Make the process faster and improve acceptance odds by preparing:

• An aged receivables report (list invoices, dates, amounts, due dates).
• Copies of invoices, delivery notes, contracts and client sign-off.
• Correspondence showing attempts to collect and any payment promises.
• Debtor details (company number, contact, recent financials if available).
• Bank/payment history showing partial payments or account details.

Once you have these, complete our short enquiry and we’ll match you to lenders/brokers who commonly fund aged debt. A spot funding decision can sometimes be made in days; larger facilities may take longer.

Start your free eligibility check — no obligation. No impact to your credit score for the initial enquiry. By submitting you consent to us sharing relevant details with matched lenders/brokers.

Benefits & drawbacks of funding aged debt

Benefits

• Immediate cash from invoices that were previously tying up working capital.
• Stabilises cashflow quickly, avoiding missed payroll or supplier payments.
• Spot solutions can close one-off gaps without a long-term facility.

Drawbacks

• Generally more expensive than funding new invoices.
• May require notification to debtors (if disclosed factoring), which can affect relationships.
• Some providers require extra security or guarantees for older debts.

Compare options via UK Business Loans to find the best balance between cost and speed.

Sector considerations

Appetite for aged debt varies by industry. Specialist funders often serve:

• Construction: certified applications and retentions can be fundable if documentation is clear.
• Trades & building services: common users of invoice finance; older certified invoices may be accepted by niche lenders.
• Professional services: recurring, contract-backed invoices are typically easier to fund.
• Manufacturing & wholesale: large, creditworthy buyers improve funding chances even for aged items.

If your sector has specialist features, tell us in the enquiry so we can match you to lenders who understand your industry.

How UK Business Loans helps

We’re an introducer that matches limited companies to lenders and brokers who specialise in invoice funding — including providers who may fund aged debt. Our process:

1. Complete a short enquiry (about two minutes).
2. We match you with selected partners experienced in aged receivables.
3. Receive quotes and eligibility feedback — compare and decide. There’s no obligation to proceed.

Minimum organised funding typically starts around £10,000 and upwards. Use our quick form to Get Quote Now — Free Eligibility Check. Responses are often within hours, depending on complexity.

Compliance, next steps and reassurance

Important: UK Business Loans does not provide loans or regulated financial advice — we introduce you to lenders and brokers who make the final offers and set terms. Lenders may carry out credit checks and will supply terms that you should read carefully before accepting.

Privacy note: by submitting an enquiry you consent to us sharing relevant details with matched partners. See our Privacy Policy for full details.

Start your free eligibility check — no obligation. No upfront fees.

Frequently asked questions

Can all aged invoices be funded?

Not always. Funding depends on invoice age, debtor credit, supporting documents and whether the invoice is disputed. Specialist funders often accept older invoices for creditworthy debtors, while others prefer newer receivables.

Will funding aged debt affect my customer relationships?

It can. Disclosed factoring notifies debtors that a third party will collect payments; confidential options (like discounting or spot funders) exist but depend on the provider. Discuss notification preferences before agreeing terms.

How quickly can aged invoices be funded?

Spot factoring can pay in a matter of days once checks are complete. Setting up ongoing facilities or larger arrangements may take several days to weeks depending on documentation and due diligence.

Do I need to give security for aged invoices?

Some lenders may ask for additional security or personal guarantees for older invoices, particularly where debtor credit is weak. Each lender’s requirements differ.

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Author: UK Business Loans — lead generation specialists for UK business finance. Updated: 01 November 2025.

Related pages: UK Business Loans • Business Loans • Asset Finance • Privacy Policy

Need tailored help? Complete a short enquiry — we’ll match you to lenders and brokers who may fund aged invoices. Get Quote Now — Free Eligibility Check. No obligation. No impact to your credit score for initial enquiry.

1. Can invoice finance be used to fund aged debt or overdue invoices?
Sometimes — many specialist factors and spot funders will consider aged debt where the debtor is creditworthy, documentation is solid and the invoice isn’t disputed.

2. How old can an invoice be to qualify for funding?
Most providers set practical limits around 120–180 days, though specialist lenders may accept older invoices for strong corporate or public‑sector debtors.

3. Which types of invoice finance are most likely to fund aged invoices?
Spot factoring and specialist factoring (including selective/blended facilities) are most likely to fund aged invoices, while confidential invoice discounting is less commonly used for very old receivables.

4. What advance rates can I expect on aged invoices?
Advance rates for aged debt are typically lower than for new invoices — commonly in the range of 50–70% depending on debtor strength and age.

5. Will funding aged invoices cost more than funding new invoices?
Yes — aged invoices usually attract higher fees, larger reserves and sometimes extra security or guarantee requirements to cover increased risk.

6. Will invoice finance for aged debt affect my customer relationships?
It can if you choose disclosed factoring, which notifies debtors, though confidential options (discounting or spot funding) may be available depending on the lender.

7. How quickly can I get cash for an aged invoice?
Spot funding can sometimes complete in a matter of days after checks, while setting up ongoing facilities typically takes several days to a few weeks.

8. What documents and information do lenders need to fund aged receivables?
Lenders usually require an aged receivables report plus copies of invoices, delivery notes/contracts, collection correspondence and debtor company details or financials.

9. Does using UK Business Loans to find invoice finance affect my credit score?
No — UK Business Loans is an introducer and its free eligibility check does not impact your credit score; lenders may run checks only if you proceed.

10. How do I find lenders or brokers who will fund aged invoices?
Complete UK Business Loans’ short free eligibility check and they’ll match you with trusted brokers and specialist lenders experienced in funding aged receivables.