Lendus.

Invoice Finance for Professional Services Firms

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

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

Rates

0.5% – 2.0%

of invoice value

Advance

Up to 90%

of invoice value

Facility Size

£15k – £3m

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Why professional services businesses use invoice finance

Professional services businesses — management consultancies, marketing agencies, IT consultancies, accountancy practices, legal support firms, and specialist advisers — bill for time and expertise already delivered, yet frequently wait 30 to 60 days for payment while their own costs (staff salaries, software, office costs) continue without pause. Unlike product businesses, professional services firms have no physical inventory to use as security, making traditional asset-based lending difficult. Invoice finance is particularly well-suited to this sector because the receivables ledger itself is the primary asset, and the high creditworthiness of typical corporate or public sector clients makes it an efficient form of financing. Releasing up to 90% of fee invoices immediately allows professional services businesses to hire ahead of growth, invest in business development, and smooth out the feast-and-famine cash flow cycles that constrain many smaller firms.

Finance types available

Invoice Factoring

Rate
0.5% - 1.75%
Advance
Up to 85%
Control
Factor collects from your clients

Best for: Smaller consultancies or agencies without a dedicated finance function who want a fully managed service covering credit control, collections, and funding

Invoice Discounting

Rate
0.6% - 2.0%
Advance
Up to 90%
Control
You maintain client relationships

Best for: Established firms with strong client relationships and in-house credit control who want confidential funding at low cost without clients knowing

Selective Invoice Finance

Rate
0.9% - 2.5%
Advance
Up to 85%
Control
Choose which invoices to finance

Best for: Boutique consultancies or agencies with a small number of large-fee clients whose invoices are high-value and sometimes slow to be approved

Common challenges

Eligibility

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Market context

Professional and business services contribute over £300 billion to the UK economy annually, making it one of the largest sectors by value. The Federation of Small Businesses estimates that UK SMEs across the professional services sector are collectively owed over £25 billion in outstanding invoices at any one time. Average debtor days for professional services businesses are consistently above 40, with corporate clients frequently taking 45–60 days even against 30-day payment terms.

Frequently asked questions

Does invoice finance work for consultancies that have no physical assets to offer as security?
Yes — invoice finance is ideally suited to asset-light businesses like consultancies and agencies precisely because it is secured against the receivables ledger (unpaid invoices) rather than physical assets. The creditworthiness of your clients is the primary security, which tends to be strong in professional services where typical debtors are mid-market or large corporates.
Can we use invoice finance on retainer invoices billed monthly to long-standing clients?
Yes — regular monthly retainer invoices are often the most straightforward type to fund, as they are predictable in value, raised consistently, and usually relate to an ongoing contractual relationship. Providers will want to see the underlying retainer agreement to confirm the contractual basis of the invoice.
What if some of our fees are contingent on project outcomes or success milestones?
Contingency or conditional fee arrangements are generally not eligible for invoice finance, as the debt is not unconditional at the point of invoicing. Fixed-fee project invoices and time-and-materials invoices for work already completed are eligible. If your business has a mix of fee types, only the unconditional element would typically be fundable.
Will my corporate or public sector clients be affected by the arrangement?
With confidential invoice discounting, clients are entirely unaffected — they pay you exactly as before and have no visibility of the funding arrangement. With factoring, clients are notified to pay the funder directly, which can occasionally raise questions. Many corporate clients are entirely familiar with factoring arrangements, but if client confidentiality is a priority, invoice discounting is the preferred route.
How quickly can a professional services firm set up a facility and start drawing funds?
Most providers can complete an assessment and set up a new facility within 5 to 10 working days for a straightforward professional services business, subject to satisfactory credit checks on your client base and review of your accounts. Selective invoice finance platforms can sometimes be faster — in some cases within 48 hours of completing an application.

Related industries

Recruitment Staffing

Guides and resources

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

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