Invoice Finance UK
Invoice finance lets you unlock cash tied up in unpaid invoices rather than waiting 30, 60, or 90 days for customers to pay. A lender advances up to 90% of each invoice's value within 24 hours, with the balance (minus fees) paid when your customer settles.
There are two main types. Invoice factoring means the lender manages your credit control and collects payments from your customers. Invoice discounting is confidential — you continue to collect payments yourself, and your customers never know a third party is involved.
Key Benefits
- Release up to 90% of invoice value within 24 hours
- Facility grows automatically as your turnover increases
- Choose factoring (managed collections) or discounting (confidential)
- No property security required — invoices are the collateral
Frequently Asked Questions
What is the difference between factoring and invoice discounting?
With factoring, the finance company manages your sales ledger and collects payments from your customers. With invoice discounting, you maintain control of collections and your customers are unaware of the arrangement. Discounting typically requires a minimum turnover of £500k+.
How much does invoice finance cost?
Costs include a service fee (0.5-3% of turnover) and a discount charge (1-3% above base rate on the amount advanced). Total effective cost is typically 1-5% of invoice value depending on volume, sector, and debtor quality.
Do I have to factor all my invoices?
Whole-turnover facilities are the most common and cost-effective. However, selective invoice finance (also called spot factoring) lets you choose which invoices to fund, typically at a higher per-invoice cost.
What happens if my customer does not pay?
With recourse factoring, the debt comes back to you if your customer defaults. With non-recourse factoring, the lender absorbs the bad debt risk (subject to credit insurance limits). Non-recourse is more expensive but protects your cash flow.
Related Funding Options
Invoice Finance for Recruitment Agencies
Release cash from placement invoices to fund contractor payroll. Specialist invoice finance for UK recruitment agencies with back-office support.
Invoice Finance for Manufacturers
Release cash from trade invoices to fund raw materials, production, and growth. Invoice finance designed for UK manufacturing businesses.
Invoice Finance for Transport & Logistics
Release cash from haulage and logistics invoices to cover fuel, wages, and vehicle costs. Invoice finance for UK transport companies.
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Learn About Our Broker NetworkCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.