Free Up Cash Flow with Invoice Finance
Turn your unpaid invoices into instant working capital, without taking out a loan. If your UK business is looking for ways to improve business cash flow and access funding against unpaid invoices, invoice finance could be ideal for your needs.
No obligation. Decisions in as little as 24 hours.
What Is Invoice Finance?
Invoice finance is a means of flexible funding that allows businesses to access up to 95% of the value of their outstanding customer invoices almost immediately. Think of it as an advance on money you’re already owed, helping you bridge the gap between raising an invoice and getting paid. Unlike a traditional business loan, invoice finance isn’t a debt that needs to be repaid in fixed instalments. Instead, the funds are tied to your existing sales forecast and grow with your business.
Invoice factoring - involves selling your invoices to a finance provider, who then takes responsibility for collecting payment from your customers.
Invoice discounting - allows you to borrow against your unpaid invoices while retaining control of your sales and credit control processes. Your customers won’t necessarily know you’re using invoice financing.
Both options provide working capital, but the best choice for your UK business will depend on your specific needs and preferences.
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Unsecured Finance
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Who Is It For?
Invoice finance can be helpful for a wide range of UK-based SMEs, particularly those that:
Issue invoices to other businesses (B2B) with payment terms of 30, 60, 90 days or more.
Are experiencing rapid growth and need capital to support increased sales.
Operate in seasonal industries with fluctuating cash flow.
Are looking for a flexible funding solution that scales with their turnover.
Common sectors that benefit from invoice finance include:
Logistics and transportation
Manufacturing companies
Recruitment agencies
Recruitment agencies
Wholesale and distribution
If you’re facing challenges with delayed customer payments and need to improve business cash flow, invoice finance offers a practical way to keep your business running and afloat.
Who Can Apply?
To apply for a business loan through Lewis Hullin, you generally need to meet the following criteria:
Your business is based in the UK.
You operate as a sole trader, limited company (Ltd), or limited liability partnership (LLP).
Your business has been trading for at least 6 months, or you are
a startup with strong financial forecasts.
You have an acceptable credit history (we may help even with
less-than-perfect credit).
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Common Loan Uses
A SME loan can help your business thrive. Here are some common ways our clients use funding:
Bridge gaps in income.
Purchase stock and inventory to meet customer demand.
Expand staff numbers to support growth.
Open new locations, enter new markets, or scale up.
Invest in essential machinery, technology, or vehicles.
How It Works
You issue an invoice
Once you’ve provided goods or services to your B2B customer, you send them an invoice as usual.
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A lender advances you funds:
You submit a copy of the invoice to the invoice finance provider. They will then advance you a significant percentage (typically 80-95%) of the invoice value within 24-48 hours.
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Your customer pays the lender (or you, depending on the type
Invoice factoring - your customer pays the finance provider directly.
Invoice discounting - your customer pays you, and you then forward the funds to the finance provider.
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You receive the remaining balance (minus fees)
You receive the remaining balance (minus fees) and once the invoice is paid, the lender will release the remaining balance to you, minus their agreed fees for the service.
Types of Asset Finance
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Hire Purchase
Hire the asset over a set period, making regular payments. Once all payments have been made, you own the asset outright. This is a good option if you want to build
equity in the asset.
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Finance Lease
Allows you to use the asset for the majority of its useful life by paying regular rental payments. You don’t own the asset at the end of the agreement, but you may have the option to extend the lease or sell the asset.
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Operating Lease
Typically a shorter-term agreement for the use of an asset. The rental payments are usually lower than with a finance lease, and the asset is returned to the finance company at the end
of the term.
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Asset Refinance
If you already own assets outright, refinance allows you to release the capital tied up in them. You essentially sell the asset to a finance company and then lease it back.
Invoice Finance vs Other Funding Options
Feature | Invoice Finance | Business Loan | Overdraft |
|---|---|---|---|
Source of Funds | Unpaid invoices | Lender’s capital | Bank’s credit line |
Debt Creation | Not direct debt; advance on owed funds | Creates a debt that needs to be repaid with interest | Creates a debt that needs to be repaid with interest |
Flexibility | Scales with your sales ledger | Fixed borrowing amount | Flexible up to a limit |
Speed of Access | Funds typically available within 24-48 hours | Application process can take longer | Funds readily available within the agreed limit |
Collateral | Primarily secured against your invoices | May require other business or personal assets | Often unsecured, but limits can be restrictive |
Best For | Fast-growing businesses, cash flow gaps due to payment terms | Larger, longer-term investments | Short-term working capital needs |
Factoring involves the finance provider managing your existing sales forecast and credit control, while discounting allows you to maintain this control. Factoring can free up more of your time but may not be suitable if you prefer to manage customer relationships directly. Discounting offers confidentiality but requires you to have a robust credit control system.
Benefits of Asset Finance
Asset finance lets you access equipment or vehicles with minimal upfront cost, keeping your cash flow strong.
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Avoid large upfront payments and spread the cost of essential assets over manageable instalments.
Budget more effectively with predictable, regular payments.
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Many equipment finance agreements offer fixed interest rates, making budgeting easier.
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Acquire the latest technology and machinery without waiting to save for the full purchase price.
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Depending on the type of asset finance, payments may be tax-deductible.
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Agreements can often be suited to your business’s cash flow and seasonal variations.
Why Choose Lewis Hullin?
When you’re looking for SME business finance, you need a partner you can trust. Here's why UK businesses choose Lewis Hullin:
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Independent & FCA-Registered
Regulated and trustworthy financial
services
Panel of 25+ UK Lenders
Access to extensive lending network
Transparent Advice
Jargon-free, clear communication
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Quick Decisions
24–72 hours response time
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5-Star Service
Excellent testimonials and reviews
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Personal Support
Dedicated relationship management
Why Choose Lewis Hullin?
At Lewis Hullin, we work with numerous reputable lenders across the UK to find the best fit for your business.
Our experienced team will guide you through the different types of invoice finance and help you understand the terms and conditions, ensuring you have all the information you need to make an informed decision.
We are FCA-registered and committed to providing impartial advice that puts your business needs first, providing expert support every step of the way.
Frequently Asked Questions
The cost of invoice finance varies depending on the provider, the volume of your invoices, and the type of facility (factoring or discounting). Typically, there’s a service fee based on your turnover and a discount fee based on the amount advanced and the time it takes for your customers to pay. We’ll help you understand the full cost implications upfront.
With invoice factoring, your customers will be aware as the finance provider will manage the collection of payments. However, with invoice discounting, your customers usually won’t know, as you remain responsible for collecting payments.
Invoice factoring involves selling your invoices and outsourcing your credit control, while invoice discounting allows you to borrow against your invoices while retaining control of your sales ledger and collections.
Once your application is approved and your invoices are verified, you can typically access up to 95% of their value within 24-48 hours. This makes invoice finance a fast way to improve business cash flow.
Minimum turnover requirements vary between lenders. Some providers cater to smaller businesses, while others may have higher thresholds. We can help you find options suitable for your business size.
What Our Clients Say
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James Mitchell
Manufacturing Ltd
"Lewis Hullin helped us secure £150,000 to expand our operations. The process was smooth and professional."
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David Wilson
Retail Business
"Professional team who understood our needs. Highly recommend for any business looking for funding."
Sarah Thompson
Tech Startup
"Excellent service and competitive rates. They found us the perfect funding solution within 48 hours."