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Invoice Finance

Unlock cash tied up in unpaid invoices. Compare factoring, discounting, and selective invoice finance from specialist UK providers.

What is invoice finance and how much does it cost?

Invoice finance releases cash tied up in unpaid invoices, typically advancing 80% to 90% of an invoice value within about forty-eight hours, with the balance paid over when your customer settles. There are two costs: a discount charge, applied to the advanced amount for as long as the invoice is outstanding, and a service fee charged on invoice value. It only works for businesses that invoice other businesses on credit terms, so it is no use to a business paid at the point of sale.

Factoring versus invoice discounting

Invoice factoringInvoice discounting
Who chases your customersThe providerYou do
Do your customers know?YesNo, it is confidential
Relative costHigher, includes credit controlLower
Usually suitsSmaller businesses without a credit control functionEstablished ledgers with proven collections

Lenders on our panel for this

Invoice finance providers on the Lendus panel. Charges are quoted as a percentage of invoice value per month, which is not an APR.

LenderFacility sizePublished rateDecision
Aldermore Bank£2k–£10m4.5%–20%Same-day decisions on asset finance up to £250,000; 3–5 days for larger deals
Bibby Financial Services£50k–£15m1%–3%Facility setup typically 1–2 weeks; initial funding within 24 hours of facility agreement
Close Brothers£10k–£5m5%–18%Within 3–5 working days
Cynergy Business Finance£200k–£40mNot publishedCynergy Business Finance describes its decision-making as fast, positive and assured, but does not publish a specific turnaround time (such as a number of hours or days) on its website as of August 2026.
Kriya£50k–£1mNot publishedInvoice finance: once approved, funds are advanced within 24 hours of uploading an invoice. Working capital loans: Kriya's own site states a member of the team will respond with an initial terms and pricing offer within 1 week of enquiry.
Ultimate Finance£20k–£5m0.8%–2.5%Facility setup 5–10 working days; initial funding within 24 hours of activation
White Oak UK£5k–£500kNot publishedWhite Oak UK states an average loan decision turnaround of around 4 hours, though this is not a guaranteed timescale for every deal.

Figures as published by each lender and dated on its own page. Indicative, not offers.

People also ask

What is the difference between factoring and discounting?

With factoring, the provider takes over your sales ledger and chases your customers directly, so your customers know you are using a facility. With discounting you keep control of collections and the arrangement stays confidential. Factoring costs more because it includes a credit control service; discounting is usually reserved for larger, well-run ledgers where the provider is comfortable you will collect effectively yourself.

Is invoice finance expensive?

It looks cheap per invoice and adds up across a year. A discount charge of 1.5% a month on a sixty-day invoice is roughly 3% of the advance, around 18% annualised, before the service fee. Whether that is expensive depends on what the cash unlocks: an early settlement discount from a supplier, or a contract you could not otherwise take on, can easily outweigh it.

What happens if my customer does not pay?

On a recourse facility you repay the advance and the debt returns to you. On a non-recourse facility the provider carries the bad-debt risk within agreed limits, in exchange for a higher fee. Read carefully which one you are being offered, because the difference matters most at exactly the moment things go wrong.

Which businesses does it suit?

Businesses invoicing other businesses on credit terms with a working capital gap between doing the work and being paid. Recruitment, construction, haulage, manufacturing and wholesale are the most common users, because payroll and materials are paid long before the invoice settles.

200+ UK lenders
2-minute application
No credit check to apply
FCA-regulated brokers

Advance

Up to 90%

of invoice value

Speed

24 hours

from submission

Rates From

0.5%

of invoice value

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Browse by industry

Construction

Unlock cash tied up in long payment chains and retentions, keep your projects moving without waiting months for certified payments.

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Engineering

Project-based work shouldn't mean project-based cash flow, release milestone invoices within 24 hours and keep your engineers deployed.

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Manufacturing

Free up cash tied in your sales ledger to fund raw materials and production, without waiting 60–90 days for customers to pay.

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Food & Drink Distribution

Perishable goods can't wait 60 days for payment, unlock cash from supermarket and trade invoices within 24 hours to keep your supply chain moving.

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Print & Packaging

Cover paper, ink, and press costs upfront, release cash from client invoices within 24 hours rather than waiting 60 days for brands and agencies to pay.

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Professional Services

Consultancies and agencies shouldn't wait 60 days for fees already earned, release invoice cash within 24 hours and keep delivering without funding constraints.

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Recruitment

Bridge the gap between paying your temps and getting paid by clients, keep placements flowing without cash flow stalling your growth.

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Staffing

Pay your temporary workers on time, every time, unlock client invoices within 24 hours and stop payroll ever being held hostage to slow-paying businesses.

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Transport & Haulage

Cover fuel, drivers, and vehicle costs today, don't wait 60 days for freight invoices to be settled before you can run the next load.

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Wholesale & Distribution

Move large volumes with thin margins by unlocking cash from your sales ledger, stop letting slow-paying retailers squeeze your working capital.

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Representative cost example

Advance £100,000 of invoices at 1.5% service charge. Cost per invoice: ~£1,500. Advance rate: up to 90%. Remaining 10% released when your customer pays. Discount charge (interest on drawn funds) charged separately.

Related resources

Frequently asked questions

What is invoice finance?
Invoice finance lets you release cash tied up in unpaid invoices immediately, rather than waiting 30-90 days for customers to pay. A finance provider advances up to 90% of the invoice value within 24 hours.
What's the difference between factoring and discounting?
With factoring, the provider manages your credit control and collects payments from your customers directly. With invoice discounting, you maintain customer relationships and collect payments yourself, it's confidential, so customers don't know you're using it.
How much does invoice finance cost?
Costs typically comprise a service charge of 0.5-3% of invoice value plus a discount charge (interest) on drawn funds at 1-3% above base rate. Total costs vary by facility size, industry, and customer credit quality.
Can startups use invoice finance?
Some providers accept businesses from 3-6 months of trading. The quality and creditworthiness of your customers matters more than your own trading history, strong end-clients improve your chances significantly.
What types of invoices can be financed?
You can finance invoices raised against other businesses (B2B) for goods or services already delivered. Consumer invoices, pre-delivery invoices, and invoices with retention clauses may not be eligible.

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