Can you help with invoice finance and releasing cash from invoices?
Short answer
Yes — Best Business Loans can help you explore invoice finance and options to release cash tied up in unpaid invoices. We don’t lend directly; instead we match your business to lenders and brokers who specialise in invoice finance so you can compare suitable solutions quickly.
What is invoice finance?
Invoice finance is a way for a business to access working capital by using unpaid invoices as security. It converts a percentage of your outstanding invoices into an immediate cash advance, helping to smooth cash flow. Common forms include factoring and invoice discounting, and both are widely used by UK SMEs.
How Best Business Loans helps
Our platform uses AI-driven matching to identify lenders and brokers that regularly provide invoice finance for businesses like yours. We gather the key facts about your business and funding needs, then introduce you to relevant providers who may be able to help. You remain in control — you decide which introductions to follow up and which offers to progress.
Types of invoice finance explained
Factoring involves selling your invoices to a factor who handles collections and advances a portion of the invoice value. Invoice discounting lets you borrow against invoices while your business retains control of credit control and collections. There are also hybrid and selective solutions such as spot factoring, disclosed vs undisclosed arrangements, and supply-chain/SME-specific variants.
Factoring vs invoice discounting — quick comparison
- Factoring: factor manages customer collections and often visible to customers.
- Invoice discounting: business keeps collections private and manages customer relationships.
- Selective/spot options: suitable if you only want to finance certain invoices or customers.
Who benefits most from invoice finance?
Invoice finance suits established B2B firms that invoice other businesses on credit terms and need predictable cash flow. Common sectors include manufacturing, distribution, transport, wholesale and services where invoice values are significant. It is less suitable for businesses that invoice consumers or have very low invoice values.
Key benefits
Invoice finance releases immediate cash so you can pay suppliers, invest in growth or bridge seasonal gaps. It improves working capital ratios and can reduce the need for overdrafts or high-interest short-term loans. Many providers offer flexible facilities that grow with your turnover, making them useful as your business scales.
How to get invoice finance through Best Business Loans
Step 1: Complete our Quick Quote — it takes a few minutes and captures turnover, debtor profile and finance needs. Step 2: Our AI analyses your profile and matches you with lenders and brokers that lend to your sector and business size. Step 3: You’ll receive introductions and can request decisions in principle or formal proposals from providers you choose to contact.
Typical documents and eligibility
Providers commonly ask for recent management accounts, aged debtor ledger, VAT returns and company formation documents. Lenders will assess debtor quality, average invoice size, sector risk and historic payment performance. Many invoice finance facilities require a minimum turnover and operate best for incorporated businesses rather than sole traders.
Timescales and costs
Initial eligibility checks can be rapid, often within 24–72 hours depending on provider workload. Once underwriting completes, facilities can be set up in days to a few weeks for standard cases. Fees typically include an advance fee (discount), a service or management fee, and occasionally arrangement or renewal charges — all of which should be disclosed before you sign.
Risks, common concerns and compliance
Invoice finance can be more expensive than traditional bank lending, especially where invoices are overdue or customers are higher risk. Disclosed factoring will change the customer relationship because customers are notified; some businesses prefer invoice discounting for confidentiality. Always check contract terms for termination clauses, reserve percentages and bad debt protections.
Is this regulated and what we disclose
Best Business Loans is an introducer and does not provide regulated credit itself; we connect you with regulated lenders or appointed brokers who will explain terms. We operate transparently and aim to present clear, fair information so you can make an informed decision. For specific regulated product advice you will be put in touch with providers who must meet FCA rules and advertising standards where applicable.
Frequently asked questions
Q: How quickly can I access cash? Advances can be available within 24–72 hours after a lender approves your facility in straightforward cases.
Q: Will my customers know? With factoring customers are usually notified; with invoice discounting your customer relationship usually remains unchanged.
Q: What does it cost? Costs vary by provider and debtor risk and normally include an advance rate, a discount/service fee and arrangement fees.
Q: Can start-ups use invoice finance? Many providers prefer established businesses with trading history; however some specialist brokers may consider younger companies if debtor quality is strong.
Key takeaways
- Invoice finance releases cash tied up in unpaid invoices and is suitable for many UK B2B firms.
- Factoring and invoice discounting are the two main options each with different operational impacts.
- Best Business Loans does not lend but uses AI and a network of lenders/brokers to match your business to suitable invoice finance options.
- Complete a Quick Quote to get matched and obtain a Decision in Principle from relevant providers.
If you want a tailored match, start a Quick Quote now and we’ll introduce you to lenders or brokers who specialise in invoice finance. You can also explore other funding types that might suit your needs on our business loans overview page: business loans.
Updated: October 2025. For personalised guidance, contact hello@bestbusinessloans.ai or submit a Quick Quote to check eligibility and receive matched introductions.1