Why this use case matters
B2B businesses on 30–90 day payment terms routinely have a meaningful percentage of their turnover tied up in unpaid invoices. That money is yours in principle, but the working-capital squeeze is real — payroll, suppliers and overheads do not wait. Invoice finance lets you bring forward up to 80–95% of an invoice's value within 24–48 hours of raising it.
Underwriting weighs the debtor as much as the borrower. Big-name customers with strong credit scores unlock higher advance rates and better pricing. Concentrated debtor books (one customer over 30% of the ledger) or disputed invoices reduce advance rates. Lendrly explains how UK invoice finance lenders frame these decisions so you can prepare your debtor list before applying.
Finance types that usually fit
Based on how UK lenders typically underwrite this use case, the following finance categories are the most common fit:
Finance types that usually don't fit
These categories are mentioned for completeness but typically aren't appropriate for this use case:
- Bridging Finance — Short-term property-backed finance.
- Commercial Mortgage — Long-term commercial property purchase/refinance funding.
- Merchant Cash Advance — Cash advance repaid as a share of card/POS/platform sales.
Eligibility questions UK lenders typically ask
- Are your customers other businesses paying on 30–90 day terms?
- Are invoices raised after the work or goods have been delivered?
- Is your debtor book diversified (no single customer dominating)?
- Are most customers credit-checkable and paying broadly on time?
- Are recent invoices free of disputes, credit notes or set-off?
- Is the business UK-based with a UK business bank account?
Documents to prepare
- Most recent aged debtor report
- Sample invoices and terms of business
- Business bank statements (3–6 months)
- Latest filed accounts
- Director ID and proof of address
- Customer contracts where available
UK lenders that often look at this use case
The lenders below publish criteria consistent with this use case. Final approval is always subject to lender underwriting.
Bibby
Factoring / invoice discounting
- Amount
- Not disclosed
- Speed
- Not disclosed
- Security / PG
- Invoice-backed
- Data confidence
- Medium
Skipton Business Finance
Factoring / discounting
- Amount
- Up to 90% invoice advance
- Speed
- Not disclosed
- Security / PG
- Invoice-backed
- Data confidence
- Medium
Kriya
Selective invoice finance
- Amount
- Up to 90% invoice advance
- Speed
- Within 24h advertised
- Security / PG
- Invoice-backed
- Data confidence
- Medium
Time Finance
Invoice finance
- Amount
- Up to 90% invoice advance
- Speed
- Often within 24h post invoice
- Security / PG
- Invoice-backed
- Data confidence
- Medium
Nucleus
Revenue-based loan
- Amount
- Up to £300k; up to 200% monthly revenue
- Speed
- Rapid decision
- Security / PG
- Not disclosed
- Data confidence
- High
Frequently asked questions
- Factoring or discounting — which is right for my business?
- Factoring suits businesses that want the lender to manage credit control. The customer sees the invoice finance lender. Discounting keeps collections in-house and is invisible to customers, but lenders generally want stronger accounts and a larger ledger to offer it.
- Can I finance just one invoice without committing the whole ledger?
- Yes. Selective or single-invoice finance is available from providers like Kriya and several others. It is more flexible but unit cost is higher than whole-ledger facilities.
- Will my customers know I'm using invoice finance?
- Yes for factoring (the lender is named on the invoice). For confidential invoice discounting, no — collections continue under your name. Confidential facilities are typically reserved for businesses with stronger accounts.
- What advance rate can I expect?
- Most UK invoice finance lenders advance 80–90% of eligible invoices, with the balance released when the customer pays. Concentration limits, dispute history and debtor credit quality affect the rate.
- Can I use invoice finance with a B2C business?
- Generally no. Invoice finance is built for B2B trade. B2C businesses with card sales should look at merchant cash advance instead, and ecommerce platforms suit revenue-based finance.
Related sectors
- Construction sector finance
- Professional services sector finance
- Manufacturing sector finance
- Transport sector finance