Lendus.

Invoice Finance for Food & Drink Suppliers

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.

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

Rates

0.75% – 2.5%

of invoice value

Advance

Up to 90%

of invoice value

Facility Size

£30k – £8m

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Why food & drink distribution businesses use invoice finance

Food and drink suppliers face a uniquely demanding version of the cash flow challenge: produce, dairy, chilled goods, and ambient products must all be bought, processed, and delivered on tight timelines — often with very short shelf life — while supermarkets and foodservice operators pay on 30 to 60-day terms. Suppliers to large grocery multiples are subject to the Groceries Supply Code of Practice (GSCOP), yet payment terms remain extended and deductions for promotions, wastage, and logistics shortfalls can complicate the receivables picture. Invoice finance is a well-established solution for UK food businesses, releasing up to 90% of invoice value immediately after delivery so suppliers can fund the next production run, pay growers and suppliers, and maintain the continuous delivery cycles that grocery and foodservice clients demand.

Finance types available

Invoice Factoring

Rate
0.75% - 2.0%
Advance
Up to 85%
Control
Factor collects from your customers

Best for: Food wholesalers and distributors supplying independent retailers or hospitality clients who want credit control and collections handled professionally

Invoice Discounting

Rate
0.85% - 2.5%
Advance
Up to 90%
Control
You maintain customer relationships

Best for: Established food producers and distributors supplying major retailers or foodservice groups who want confidential funding without changing customer payment processes

Selective Invoice Finance

Rate
1.0% - 3.0%
Advance
Up to 85%
Control
Choose which invoices to finance

Best for: Food suppliers with one or two dominant supermarket or buying group customers whose invoices are large and payment terms are long

Common challenges

Eligibility

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Market context

The UK food and drink sector is the country's largest manufacturing industry, contributing over £30 billion in value added annually and employing more than 450,000 people. Suppliers to the major grocery multiples collectively experience an estimated £2 billion in working capital tied up in outstanding receivables at any one time. The Groceries Code Adjudicator (GCA) has repeatedly highlighted payment practice concerns within the supermarket supply chain, making third-party working capital support a practical necessity for many smaller food businesses.

Frequently asked questions

Can invoice finance help with cash flow when supplying supermarkets on long payment terms?
Yes — this is one of the most common applications for food and drink businesses. The major grocery retailers (Tesco, Sainsbury's, ASDA, Morrisons, etc.) are all well-known, creditworthy debtors that invoice finance providers are comfortable funding against. The long payment terms these retailers impose are precisely the problem that invoice finance solves.
How does the facility handle supermarket deductions for promotions, waste, or logistics?
Deductions from supermarket buyers are a known complexity in food supply chain finance. Most experienced food finance providers will model a deduction rate into the facility — effectively a dilution reserve — to account for expected credits and deductions. This means the advance rate on supermarket invoices may be slightly lower than for other debtors, but the facility can still function effectively.
We supply to both retail and wholesale customers — can the facility cover both?
Yes — a whole-turnover facility will cover all eligible B2B invoices across your customer base, whether they are retail chains, foodservice operators, wholesalers, or independent retailers. Consumer sales (direct to members of the public) are not eligible, but all trade invoices to business customers can be included.
What about fresh produce where invoices are settled very quickly — is invoice finance still useful?
For fresh produce businesses selling to buyers with 7–14 day terms, invoice finance may be less valuable than for those with 30–60 day terms. However, even short payment gaps can be problematic when production costs are daily. Selective invoice finance allows you to fund the invoices where you most need early payment without committing your entire ledger.
Can a food startup or new product business use invoice finance?
Start-up food businesses face higher scrutiny from lenders as there is limited trading history to assess. However, if the business has secured a listing with a creditworthy retailer or foodservice operator and can demonstrate a clear order pipeline, some specialist lenders will consider early-stage facilities. The quality of the debtor is as important as the age of the supplier.

Related industries

Transport & Haulage

Guides and resources

What Is Invoice Discounting? Factoring vs Discounting Invoice Finance vs Business Loan Best Factoring Companies

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