Invoice Finance
Release the cash trapped in your unpaid invoices
Invoice finance lets a UK business turn unpaid invoices to other businesses into cash before the customer pays. A funder advances a large share of each invoice's value, then pays you the balance, less its fees, when your customer settles. Guavas is a credit broker: we arrange invoice finance from funders on our panel. Our quote form carries no obligation.
- Advances of up to 95% of invoice value with some funders
- With invoice factoring, the funder takes over collecting payment
- Funding in as little as 48 hours with some funders
- No obligation. No personal or business credit checks, and no impact on your personal or business credit score.
Rated by UK businesses · Moneyfacts Highly Commended 2025
Some of the funders we work with
Award-recognised business finance
Highly Commended: Invoice Finance Broker of the Year, Business Moneyfacts Awards 2025
Confirmed Finalist: Invoice Finance Broker of the Year, Business Moneyfacts Awards 2026
The basics
What is invoice finance?
Invoice finance releases most of the value of an unpaid invoice as cash while you wait for your customer to pay.
When customers take 30, 60 or 90 days to pay, your cash is stuck in those invoices. Invoice finance lets you borrow against them, or sell them, so you're not left waiting. The funder sets how much it advances and how quickly it pays out.
It suits businesses that invoice other businesses on credit terms. How much you can draw grows as your invoicing grows. The exact advance, fees and speed depend on the funder and on your customers' payment record.
The two main types, side by side
| Feature | Invoice factoring | Invoice discounting |
|---|---|---|
| How it works | The funder manages your sales ledger and collects payment from your customers. You hand over credit control, and your customers know a funder is involved. The funder advances cash against each invoice and chases payment on your behalf. | You keep control of your sales ledger and keep collecting payment yourself. The funder advances cash against your invoices and you repay it, with fees, when your customer pays. |
| Who collects payment | The funder | You |
| Do customers know | Yes | Usually not. It can be confidential, so your customers may not know. |
| Who suits | Businesses that want to hand over credit control | Businesses with their own credit control. Funders usually expect this. |
| What stays the same | You receive part of each invoice up front and the balance, less fees, when your customer pays. | |
Is invoice finance right for you?
Good fit if
- You invoice other businesses on credit terms and wait for payment
- You work in recruitment, construction or healthcare, for example
- Your invoicing is growing
Probably not a fit if
- You are paid at the point of sale or by consumers
- You have very few invoices
- Your customers rarely pay on time
What funders look at
- That you invoice other businesses on credit terms
- The quality of those invoices
- Your customers' creditworthiness
- Your trading history
If you are unsure, tell us what you need and we will tell you which options are worth looking at. Bad credit does not have to rule you out, because the main risk a funder weighs is whether your customers will pay. Final decisions are always the funder's.
Why businesses choose it
The benefits of invoice finance
Improved cash flow
Access funds against outstanding invoices to meet daily expenses, pay employees, and invest in growth — without waiting weeks for customers to settle.
Fast access to funds
Once your invoices are approved, funds can reach you in as little as 48 hours with some funders. That is usually quicker than a bank loan.
Often no property needed as security
Your invoices act as the main security, so you do not always need property or equipment to put up. Some funders may also ask for additional security or a director guarantee.
Improved credit control
With factoring, the funder chases payment for you, so your team spends less time on collections.
What does invoice finance cost, and how is Guavas paid?
Funders charge fees, usually a service fee and a charge on the money advanced. The funder sets them and they vary with your invoice volume, your customers and the facility. We do not publish rates because they are specific to your business. Guavas is paid commission by the funder when you take out a facility, as set out in our commission disclosure. Read it before you decide.
A worked example (hypothetical)
A business invoices a customer £10,000 on 60 day terms. Instead of waiting 60 days, it uses invoice finance and a funder advances part of the invoice shortly after approval. When the customer pays the full £10,000, the funder pays the business the balance, less its fees. The figures are round numbers for illustration only. They are not a quote, and advance rates and fees differ between funders.
Our three-step process
The Guavas way
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Tell us what you need.
Answer seven questions about your business. It takes about two minutes.
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We match you with funders.
We compare your answers against our panel of 50+ UK funders.
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Compare and choose.
We show you the options that fit. You decide whether to go ahead, and the funder makes the final decision.
Sectors that use invoice finance
These are some of the sectors we work with. If yours is not listed, tell us what you do and we will see which funders on our panel might consider it.
Recruitment Agencies
We help UK recruitment agencies keep cash flow healthy between placements and payroll — so you can place the next candidate without waiting on the last invoice.
Learn moreConstruction Companies
We help UK construction businesses bridge the gap between project milestones and long payment cycles — keeping crews paid and materials moving on site.
Learn moreHealthcare Industry
We help UK healthcare providers free up capital tied in unpaid invoices, so slow-paying contracts don't hold up staffing and equipment.
Learn moreInvoice finance FAQs
What is invoice finance and how can it help my business?
We arrange invoice finance from funders who advance a large share of the invoice value. The amount varies by funder. Learn more about invoice financing vs invoice discounting.
How does the invoice finance process work?
By selling your unpaid invoices to a funder through our brokerage services, you receive a percentage of the invoice value. Once your customer pays, the funder releases the remaining funds after deducting their fees, ensuring immediate cash flow to manage business expenses. Discover the detailed process in our guide on the invoice factoring process.
Is my business eligible for invoice finance?
We look at your customers' creditworthiness and the quality of your invoices, then arrange options from funders who may be able to help. Any decision is the funder's.
What fees are involved in invoice finance, and how is Guavas paid?
Funders typically charge a service fee, a percentage of invoice value, and a charge on the money advanced. Some also charge set-up or other fees. Guavas does not charge you a fee; the funder pays us commission. See our commission disclosure for how it works.
How quickly can I get funds?
It depends on the funder and how soon your invoices and agreement are approved. Some funders can pay out in as little as 48 hours.
Is invoice finance only for struggling businesses?
No. Plenty of healthy, growing businesses use invoice finance simply because their customers take a long time to pay. Many established businesses use it as a normal way to manage the gap between invoicing and getting paid. Using it does not in itself signal trouble.
Can I get invoice finance with bad credit?
Bad credit does not have to rule you out, because the main risk a funder weighs is whether your customers will pay. Final decisions are always the funder's.
Related guides
Top Invoice Finance Providers in the UK
A comprehensive comparison of leading UK invoice finance providers to help you find the right fit for your business.
Read guideInvoice Financing vs Invoice Discounting
Understand the key differences between invoice factoring and discounting so you can choose the right product for your cash flow needs.
Read guideInvoice Factoring Process Explained
A step-by-step UK guide to invoice factoring — from application through to funding — so you know exactly what to expect at each stage.
Read guideLooking at a lump sum instead? See business loans. Need a flexible card? See business credit cards.