Do you support invoice finance for BB customers like processors, wholesalers or retailers?

Short answer: yes — we help eligible B2B processors, wholesalers and certain retailers get matched with invoice finance providers

Yes. Best Business Loans supports invoice finance by introducing eligible UK businesses to trusted lenders and brokers who offer factoring, invoice discounting, and selective invoice finance. We do not lend directly, but our AI-driven platform matches your profile to suitable providers who are actively funding in your sector.

Invoice finance can be a strong fit for processors and wholesalers that sell on credit terms to other businesses. Retailers may also qualify where they have B2B receivables — for example, supplying other retailers, hospitality groups, trade buyers, or corporate accounts.

If your sales are mostly consumer card or cash payments, invoice finance is unlikely to be right; alternative working capital options may be more suitable. We will always aim to route you to the most relevant finance specialists for your trading model. All matches and outcomes are subject to provider approval and their underwriting criteria.

Who typically qualifies for invoice finance?

Providers normally prefer established B2B firms with verifiable invoices, clear credit terms, and diversified customer bases. Sectors include food and drink processors, FMCG and industrial wholesalers, and retailers with corporate or wholesale accounts. Turnover and trading history requirements vary by funder, but one year+ trading and £250k+ annual turnover are common baselines.

What types of invoice finance can we introduce?

• Factoring: funder advances cash and manages collections.
• Confidential invoice discounting (CID): you collect as usual; funding remains confidential.
• Selective/single-invoice finance: fund specific invoices or debtors as needed.
• CHOCs factoring (Client Handles Own Collections): hybrid model keeping your credit control in-house.
• With or without bad-debt protection: credit insurance can be built in or added separately.

How invoice finance works for processors, wholesalers and retail supply chains

Invoice finance converts your unpaid B2B invoices into immediate working capital. A funder typically advances 70–95% of approved invoice value, then releases the balance (minus fees) when the customer pays. This helps smooth cash flow, support bulk purchasing, and bridge longer payment terms.

Simple 4-step journey

1. Quick Quote: tell us your sector, turnover, debtor profile, and funding goals.
2. Smart Match: our AI highlights suitable lenders or brokers for your circumstances.
3. Indicative Terms: a provider assesses your ledger and issues proposals if eligible.
4. Onboarding and drawdown: due diligence completes, facility is set up, and funds can be advanced.

What you can use it for

• Buying raw materials or inventory ahead of peak demand.
• Covering wages, energy, logistics, and operating costs while invoices age.
• Negotiating early-payment discounts with suppliers to improve margins.
• Funding growth, new contracts, and larger order volumes without stretching cash.

Typical documents and data funders request

• Recent management accounts, annual accounts, and aged debtor/creditor reports.
• Sample invoices, contracts, and standard terms of trade.
• Bank statements and details of any existing debenture or security.
• Customer concentrations, dispute history, and credit limits per debtor.

Important considerations and risks

• Fees apply and vary by provider, risk, sector, and concentration levels.
• Non-recourse (with bad-debt protection) reduces insolvency risk but costs more.
• Concentration limits may cap funding against your largest buyers.
• Robust paperwork and clean proof of delivery help minimise disputes and delays.

Costs, structures and key differences

Invoice finance pricing commonly includes a service fee and a discount rate applied to drawn funds. Typical service fees might range from 0.25% to 3% of turnover, and discount rates are often quoted as a margin over base rate. Exact costs depend on turnover, sector risk, average debtor days, and ledger quality.

Some funders set minimum monthly fees or annual commitments. Others offer flexible, selective-only options at higher per-invoice pricing but with fewer fixed costs. Always compare total cost of ownership, service scope, notice periods, and exit clauses, not just headline rates.

Factoring vs invoice discounting vs selective finance

Feature	Factoring	Invoice Discounting	Selective Finance
Collections	Handled by funder	Handled by you	You handle or funder varies
Confidentiality	Usually disclosed	Typically confidential	Varies by provider
Flexibility	Whole ledger	Whole ledger	Per invoice/debtor
Indicative advance	Up to 90–95%	Up to 85–95%	60–90% typical
Best for	Firms wanting outsourced credit control	Firms with strong in-house finance teams	Occasional funding needs or project-driven cash gaps

Sector examples

Processors: A food processor supplying national chains on 45–60 day terms can draw against approved invoices to buy ingredients and packaging without delaying production. Bad-debt protection can be added for key buyer insolvency cover. This stabilises cash conversion while maintaining supplier relationships.

Wholesalers: A regional wholesaler scaling into new accounts can fund larger orders and credit lines without depleting cash. Selective finance can support new buyer onboarding until volumes justify a whole-ledger facility. Concentration limits should be reviewed when one or two buyers dominate revenue.

Retail supply chains: Retailers with B2B receivables — such as supplying other stores, concessions, or corporate clients — may qualify. Pure B2C tills are not eligible for invoice finance because there is no invoice-led debtor book. Mixed models can ring-fence only the B2B ledger for funding.

How Best Business Loans helps — independent, AI-powered matching (not a lender)

We are an independent introducer that helps established UK businesses find relevant invoice finance providers. Our AI-driven matching considers your sector, debtor mix, concentration risk, and trading history to shortlist suitable lenders or brokers. You remain in control and decide which option to pursue.

What our matching looks at

• Trading profile: turnover, margins, seasonality, and debtor days.
• Ledger quality: disputes, dilutions, and top buyer concentrations.
• Sector appetite: providers actively funding processors, wholesalers, and retail supply chains.
• Facility fit: factoring vs discounting, selective options, and bad-debt protection preferences.

What we don’t do

• We don’t lend money or provide financial advice; we make introductions only.
• We don’t currently support start-ups, sole traders, property finance, or franchises.
• We don’t guarantee approval or the lowest market rate; terms depend on each provider’s assessment.

Typical timeframes and next steps

• Indicative terms can arrive in 24–72 hours once basic data is shared.
• Onboarding can complete within 1–3 weeks, depending on diligence and debenture priorities.
• Post-setup, funds are often available within 24 hours of invoice upload and verification.

Fair, clear and not misleading — important information

Best Business Loans is not authorised to provide regulated advice and does not arrange finance; we introduce you to third-party providers. Eligibility, funding limits, fees, and security are set by the provider and may require a debenture or personal guarantee. Over-18s, business use only, and facility availability is subject to status, underwriting, and terms.

Submitting a Quick Quote is free and without obligation. We may receive an introducer commission from the provider if you proceed, which does not affect the price you pay. Please seek independent professional advice if you are unsure about the suitability of any product.

If you operate in sectors like agriculture and farming, our network includes specialists familiar with seasonal cash cycles and commodity-led buyers. Explore more sector context here: agriculture business finance options. We keep your information secure and only share it with relevant finance professionals for your enquiry.

FAQs about invoice finance for processors, wholesalers and retailers

Can retailers use invoice finance if they sell mostly to consumers?

Invoice finance is designed for B2B invoices raised on credit terms. Pure B2C till receipts are not eligible because there is no invoice-led debtor. Retailers with corporate accounts, wholesale divisions, or franchise invoicing can still qualify on their B2B ledger.

What size of business do providers prefer?

It varies by funder, but many look for at least 12 months trading and c. £250k–£500k turnover. Some selective funders will consider smaller firms case by case. Larger, diversified ledgers typically access sharper pricing and higher advances.

How much can I draw and how fast?

Indicative advances range from 70–95% of approved invoice value. Once the facility is live, approved invoices can fund within 24 hours in many cases. Remaining balances are paid on debtor settlement minus fees.

Will I need a personal guarantee or security?

Many providers take a debenture over the company and may request a personal guarantee. Security requirements depend on risk profile, concentration, and facility type. Non-recourse options with credit insurance can reduce bad-debt exposure but may not remove PGs entirely.

What happens if my customer does not pay?

In recourse facilities, unpaid invoices may be charged back after a set period. In non-recourse facilities with bad-debt protection, qualifying insolvency events can be insured up to agreed limits. Disputes and contractual issues are usually excluded and remain your responsibility.

Can I keep my customer relationships and collections?

Yes. Confidential invoice discounting and CHOCs structures let you retain credit control. Factoring outsources collections if you prefer. Your provider will confirm which options they support and how they protect confidentiality.

Do you charge me for the introduction?

Submitting your enquiry to us is free and without obligation. If you proceed, we may receive a commission from the funder or broker. We aim to be transparent and only introduce you to relevant, reputable partners.

How do I start?

Complete a Quick Quote with your company details, sector, and funding needs. Our AI will shortlist suitable providers and arrange introductions. You can compare offers, ask questions, and choose if you want to proceed.

Key takeaways

• Invoice finance turns approved B2B invoices into immediate working capital.
• Ideal for processors, wholesalers, and retailers with B2B receivables.
• Options include factoring, invoice discounting, and selective finance.
• Costs and advance rates depend on ledger quality, sector, and concentrations.
• We introduce you to suitable funders; we do not lend or give regulated advice.

Updated: October 2025. Information is general and may change; always confirm details with the chosen provider.

Next step: Ready to explore invoice finance options for your business? Complete your Quick Quote now for a free, no-obligation eligibility check and introductions to suitable providers.

About Best Business Loans

BestBusinessLoans.ai is an independent UK introducer using AI and a professional network to connect established companies with relevant finance providers. We help you navigate options — from invoice finance to asset and equipment funding — so you can make confident, informed choices. Your data is handled securely and shared only with appropriate partners for your enquiry.