Invoice Finance Broker
Invoice finance releases up to 90% of an unpaid sales invoice within 24 hours, with the balance paid over on settlement less the funder's charges. Invoice discounting keeps collections with you and is usually confidential; factoring hands credit control to the funder and suits smaller ledgers; selective or spot facilities fund single invoices without tying up the whole book. The real cost is two numbers, not one - a service fee of roughly 0.5% to 3% of turnover, plus a discount charge of around 2% to 5% over base on the funds drawn - and the contract terms around minimum fees, notice periods and concentration limits routinely matter more than the headline rate.
Criteria and pricing
What lenders on our panel will typically do on this product today.
- Advance rate
- Up to 90% of approved invoices, typically 80-85%
- Speed
- Funds usually within 24 hours of invoice upload
- Service fee
- ≈ 0.5-3% of turnover, depending on volume and admin
- Discount charge
- ≈ 2-5% over base on drawn funds
- Facility size
- £25,000 to £10m+
- Minimum trading history
- Start-ups accepted where debtors are strong
- Concentration limit
- Commonly 25-40% of the ledger with a single debtor
- Contract
- 12-24 months typical; selective facilities have no lock-in
Worked example - £1.2m turnover engineering business
- Sales ledger outstanding
- £210,000
- Advance at 85%
- £178,500 available
- Average funds drawn
- £140,000
- Service fee at 0.9% of turnover
- £10,800 pa
- Discount charge at 8% on drawn funds
- £11,200 pa
- Total annual cost
- ≈ £22,000
- Effective cost of the working capital
- ≈ 15.7% pa
Figures are typical UK market ranges as at 2026 and are indicative only - your terms depend on the asset, the income, the exit and the lender we place the case with.
Who this works for — and who it does not
You are likely to qualify if
- B2B invoicing on credit terms - retail and consumer sales do not qualify
- Invoices raised for completed, undisputed work
- An aged debtor listing and up-to-date management accounts
- No unresolved crown arrears, or an agreed time-to-pay arrangement
- A reasonably spread debtor book, or a single strong debtor a funder will accept
This is the wrong product if
- Businesses paid immediately or by card at the point of sale
- Contracts with heavy stage payments, retentions or pay-when-paid clauses, unless a construction-specialist funder is used
- Companies looking to fund losses rather than growth - invoice finance solves timing, not profitability
- Ledgers dominated by one debtor beyond the funder's concentration cap
What actually happens, and when
- Day 1
Ledger review
We take the aged debtor report, terms of trade and accounts, and identify which funders fit your sector and debtor profile.
- Day 2-5
Quotes compared
Offers are compared on total cost, not headline rate - service fee, discount charge, minimum fees, notice period and audit costs.
- Day 5-12
Survey and onboarding
The funder runs a short survey of the sales ledger and processes, then documents the facility.
- Day 12-21
First drawdown
Two to three weeks from enquiry to first funds is typical; selective single-invoice facilities can fund in under a week.