Invoice finance: stop waiting 60 days to get paid

Small UK firms are owed an average of more than £12,000 a year in late payments, according to a Hiscox report published in February 2026. Invoice finance turns those unpaid invoices into cash within days, so wages, suppliers and the next job don't have to wait for someone else's payment run.

What is invoice finance?

Invoice finance lets you borrow against the money your customers owe you. A lender advances most of the value of your unpaid invoices, typically 80 to 90 per cent according to the British Business Bank. When your customer pays, you receive the balance, minus the lender's fees.

It grows with you. The more you invoice, the more you can draw.

Factoring or invoice discounting?

Invoice factoring. The lender advances the money and also runs your sales ledger, chasing your customers for payment. Your customers will usually know. It suits smaller businesses that want the credit control taken off their hands.

Invoice discounting. You get the cash, and you keep chasing your own invoices. It is usually confidential, so your customers won't know. It tends to suit more established businesses with their own credit control.

Selective invoice finance. Fund one invoice or a handful, when you need to, with no long-term contract.

How much does invoice finance cost?

You will usually pay two things: a service fee, often a percentage of turnover or of each invoice, and a discount charge, which works like interest on the money you draw. The total depends on your turnover, your customers and how quickly they pay. We put real quotes side by side so you can see the true cost before you commit.

Is invoice finance worth it?

It is worth it when slow payment is holding you back: when you are turning down work because you can't fund it, paying suppliers late, or watching the overdraft every Friday. It is less useful if your customers pay on the day or if you sell mostly to consumers. We'll tell you honestly which side of that line you are on.

One trade business we worked with in Newcastle was stuck in exactly that loop. Invoice finance closed the gap between finishing jobs and getting paid, and the cash flow problems went with it.

What you'll need to apply

Lenders look hardest at your customers, because they are the ones who pay the invoices.

Who can get invoice finance?

Businesses that invoice other businesses on credit terms. Construction, haulage, manufacturing, wholesale, recruitment and professional services all use it heavily. Lenders care most about the quality of your customers, so a young business with solid customers can often qualify.

How it works with Flite

Tell us your turnover, your typical customers and their payment terms. Your Lending Expert finds the lenders that suit your sector and invoice profile, and lays out the options plainly. Flite is free to you. We are paid by the lender when your facility goes live.