Use unpaid invoices now

Invoice finance for UK businesses tired of waiting to be paid.

Invoice finance releases cash against eligible unpaid invoices. Willow compares factoring, invoice discounting and specialist facilities across the market, then shows you what is genuinely available, what it costs and where the catches are.

See what your invoices could release Send us the numbers
If it fits, we will show you the options. If it does not, we will tell you. The initial conversation and assessment are free. You will see the lender costs, our remuneration and the practical restrictions before you decide whether to proceed.
Illustrative debtor ledger Outstanding invoices
Live working capital
Customer Major contract A
Invoice £48,000
Eligible
Customer Trade account B
Invoice £31,500
Eligible
Customer Framework C
Invoice £20,500
Eligible
Illustrative 85% advance £85,000 available Against a £100,000 eligible ledger, before fees and existing utilisation.
Independent market comparison Banks and specialist invoice financiers
Funding linked to sales Availability can grow with eligible invoices
Factoring or discounting Choose the right level of control and visibility
New and existing facilities First-time funding, refinance and growth
Invoice finance explained

What is invoice finance?

Invoice finance lets a business access part of the money owed by its business customers before those customers pay. The provider advances an agreed percentage of eligible invoices. When the customer pays, the advance and charges are settled and the remaining balance is released.

It is not free cash and it will not make a poor invoice good. The value lies in turning a slow-paying debtor book into working capital that can fund payroll, stock, contracts or growth.

Published by Willow Private Finance, an independent UK finance broker established in 2008. Page updated: 17 September 2026.

Usually a good fit when

  • You invoice other businesses
  • The work or supply is complete
  • Customers are creditworthy but slow to pay
  • You raise invoices regularly
  • Cash flow is holding back profitable growth

Usually a poor fit when

  • Most sales are to consumers
  • Invoices are disputed or not yet earned
  • Debt is already badly overdue
  • Contracts prevent assignment or create set-off risk
  • The underlying trade is not commercially viable
Start with the cash-flow problem

What are you actually trying to fix?

The facility comes second. First establish why cash is trapped, how reliable the invoices are and whether funding them improves the business or merely delays a wider problem.

Release cash

Customers are paying slowly

Use eligible invoices now rather than leaving cash locked up until the due date.

Run the numbers → Fund growth

Sales are rising faster than cash

Build a facility that can expand as the eligible debtor ledger grows.

Compare facility types → Deliver contracts

A large order needs funding now

Support payroll, stock or delivery costs while waiting for invoices to be paid.

Discuss the contract → Keep control

You want a confidential solution

Explore invoice discounting where the business retains collections and customer contact.

See confidential options → Manage complexity

One customer dominates the ledger

Test concentration, contractual terms and lender appetite rather than assuming the ledger is unfundable.

See what lenders assess → Refinance

Your existing facility no longer fits

Compare cost, advance rate, concentration limits, service and flexibility across the market.

Understand the cost →
How invoice finance works

Raise invoice. Draw cash. Customer pays. Repeat.

That is the basic mechanism. The important detail is which invoices count, how much can be drawn, who collects payment and what the facility costs while it is in use.

01

You raise an invoice

The business supplies goods or services to another business and creates a valid invoice on agreed credit terms.

02

The invoice is notified

Eligible invoices are uploaded or synchronised with the funder under the agreed facility rules.

03

Cash is made available

A percentage of the eligible invoice value can be drawn, subject to the facility limit and current utilisation.

04

Your customer pays

When payment arrives, the advance and charges are reconciled and the remaining balance becomes available.

Choose the operating model

Factoring and invoice discounting are not the same thing.

Both release cash against invoices. The real difference is who controls collections, whether customers know and how much financial control the lender expects you to have.

Collections support

Invoice factoring

The provider advances cash and takes over or supports collections. Customers normally know the facility is in place. It can work well when the business needs both funding and help chasing payment.

Customer awareness Usually disclosed
Collections Funder-managed
Typical fit Growing SMEs
  • Working capital linked to eligible invoices
  • Credit-control support included
  • Can reduce internal collections burden
  • Terms vary by ledger and sector

Invoice finance options at a glance

Facility Will customers usually know? Who normally collects? Most likely to suit
Invoice factoring Yes The finance provider Businesses wanting funding and credit-control support
Invoice discounting Sometimes The business Businesses with reliable ledger and collection systems
Confidential invoice discounting Normally no The business Established businesses with stronger controls and reporting
Selective invoice finance Depends on the structure Depends on the provider Occasional, large or contract-specific funding needs

Bad-debt protection is an add-on, not a substitute for checking the facility. It can cover certain approved customer failures, but limits, exclusions and disputes still matter.

Interactive invoice finance calculator

How much could your unpaid invoices release?

Use your own ledger, expected eligibility and likely usage. The calculator separates the service fee from the cost of the money so you can see what drives the result.

Your ledger and assumptions

How the calculation works: available funding = unpaid ledger × eligible proportion × advance rate. The service fee is applied to monthly invoiced turnover. The finance charge is applied to the modelled amount in use. Lenders may exclude old, disputed, overseas, consumer, uncertified or contractually restricted invoices.

Indicative result

Potential working capital

Gross funding availability £76,500
Additional availability £76,500
Modelled average use £57,375
Monthly service fee £600
Monthly finance charge £359
Total modelled monthly cost £959
On these assumptions, the ledger could support a revolving facility. Actual availability changes as invoices are raised, paid, disputed, excluded or restricted by customer concentration.

This calculator is illustrative, not a quote or credit decision. It excludes minimum fees, arrangement, audit, legal, survey, concentration, credit-protection and other possible charges. Finance rates and service fees vary by provider, business, sector, turnover and facility structure.

Check these figures with Willow
What lenders assess

The debtor book matters as much as the business.

Invoice financiers are lending against the collectability of invoices. A profitable business can still have a weak funding ledger; a business with historic difficulties may still have strong, financeable receivables.

A difficult case is not the same as an impossible case.

Concentration, HMRC arrears, losses, an existing debenture or overseas customers may rule out some providers, not the whole market. Hide them and the deal is likely to fall apart later.

01
B2B invoices Invoices normally need to be owed by other businesses or qualifying organisations.
02
Completed supply Goods or services should be delivered and evidenced under clear contractual terms.
03
Customer quality Creditworthiness and payment behaviour of debtors affect limits and eligibility.
04
Ledger concentration Heavy reliance on one or two customers may create concentration restrictions.
05
Invoice ageing Older or overdue invoices may be excluded or funded at a reduced level.
06
Dilution and disputes Credit notes, returns, set-off and disputes reduce the reliable value of the ledger.
07
Contracts and certification Stage payments, applications for payment and contractual rights need specialist review.
08
Existing security Debentures, loans and current facilities can affect priority and refinancing mechanics.
Understand the true facility cost

The cheapest-looking facility can release less cash and cost more.

A low service fee means little if the advance is weaker, more invoices are excluded or minimum charges bite. Compare the cash you can actually use, the total expected cost and the restrictions attached to it.

01 · Service fee

Running the facility

Often linked to invoiced turnover, facility size and the service required. Minimum monthly fees may apply.

02 · Finance charge

Using the cash

Calculated on the amount actually drawn, commonly by reference to a base rate plus the provider's margin.

03 · Other charges

Setting up and protecting it

Arrangement, audit, legal, survey, minimum-use, refactoring or bad-debt-protection costs may also apply.

£
We compare the usable money, the total cost and the restrictions. That means advance, eligibility, minimum fees, concentration limits, contract length, notice, service and likely usage—not one flattering headline rate.
Sector-specific working capital

The invoice may look different in every industry.

The funding structure should reflect how work is completed, evidenced, billed and paid. That is especially important where deductions, certification, timesheets or contractual set-off are common.

01

Construction

Applications for payment, certification, retentions and contractual debt need specialist appetite.

02

Recruitment

Fund weekly payroll while end-clients settle approved timesheet invoices later.

03

Manufacturing

Bridge the gap between raw-material and production costs and customer receipts.

04

Wholesale

Recycle cash into stock while trade customers use agreed credit terms.

05

Transport & logistics

Meet fuel, vehicle and payroll costs during extended customer payment cycles.

06

Engineering

Support project and production cash flow where orders require substantial upfront cost.

07

Facilities & security

Fund labour-heavy contracts where wages fall due before monthly invoices are paid.

08

Import & export

Assess overseas debtor eligibility, currencies, jurisdictions and credit protection.

Why use Willow

One lender's answer is not the market.

We work out what the ledger can support, compare banks and specialist providers, and show you the differences in plain English. If invoice finance is the wrong solution, we will say so.

Start a confidential review
01
Independent comparison Access to banks and specialist providers rather than a single in-house product.
02
Structure before price We test eligibility, advance, concentration, control and flexibility alongside cost.
03
Problems dealt with upfront Construction, export, concentration, historic credit issues and existing security are raised before they derail the facility.
04
No hand-off after the introduction We coordinate the information, lender questions and next steps through to completion.
Invoice finance FAQs

Questions business owners ask before enquiring.

The answers below are general. Facility terms depend on the business, ledger, contracts, customers and provider.

What is invoice finance?

Invoice finance is funding secured against eligible unpaid business-to-business invoices. The provider releases an agreed proportion before the customer pays. When payment arrives, the funding and charges are settled and the remaining balance is released.

What percentage of an invoice can be advanced?

Advance rates vary by provider, sector and ledger quality. A provider may advance a high percentage of eligible invoices, but exclusions, concentration limits and reserves determine the cash actually available.

Will my customers know I use invoice finance?

Usually with factoring, because the provider supports collections. Confidential invoice discounting can allow the business to retain collections without customers being told, subject to lender criteria and the facility structure.

Who collects the invoice?

Under factoring, the provider normally runs or supports collections. Under invoice discounting, the business usually continues to collect customer payments under an agreed process.

Can a new or loss-making business qualify?

Potentially. The lender will consider the quality and collectability of the debtor book, customer profile, contracts, controls and reasons for the current financial position. Appetite differs significantly between providers.

Can invoice finance work with one large customer?

Possibly, but concentration is a key issue. Some lenders can support concentrated ledgers where the customer, contract and payment history are strong; others impose caps that materially reduce availability.

Can construction invoices be funded?

Yes, through providers comfortable with construction debt. Applications for payment, certification, retentions, disputes, set-off and contractual terms require specialist assessment.

Does using a broker make the lender charge more?

Lender remuneration arrangements vary. Willow explains how it is paid and the costs applying to the proposed facility before you proceed. The comparison should focus on the complete commercial outcome, not one fee in isolation.

How quickly can a facility be arranged?

Timing depends on information quality, due diligence, existing security, legal work and the complexity of the ledger. A well-prepared case with clean data can progress much faster than one where eligibility or contractual issues emerge late.

Confidential facility review

Send us the numbers. We will tell you if it looks viable.

You do not need a polished proposal. Tell us what the business invoices, what is outstanding, who the main customers are and how much cash is needed. We will assess the likely options and flag the problems early.

✓ Current annual turnover
✓ Outstanding debtor ledger
✓ Largest customer exposure
✓ Funding objective and timing
C Book a 30-minute conversation Choose a convenient time with the team → W Start on WhatsApp Send a short outline of the requirement → E Email the invoice finance team Send the basic figures and what the cash needs to achieve →

Do not send identification, bank statements, accounts or other sensitive documents by ordinary email or WhatsApp. Willow will explain how to share documents securely.

Willow Private Finance is a trading style of Willow Private Finance Limited. Business finance may be unregulated. Finance is subject to status, underwriting and lender criteria. This page does not constitute an offer of credit or financial advice.
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