Access cash from unpaid invoices.
Use unpaid customer invoices to access working capital while your business continues to collect payments. Understand how it works, what it costs and which providers to consider.
For UK businesses that invoice other businesses.
Example: funding against invoices
Illustrative initial advance
An 85% advance on £100,000 of eligible invoices. Fees, reserves and any borrowing already outstanding reduce the cash available.
Start with the fundamentals
Receive funds before your customers pay.
Invoice discounting releases a proportion of eligible customer invoices before payment arrives. It can help bridge a cash-flow gap while your business retains its sales ledger and collections.
The right choice depends on your customers, payment terms, margin and ability to manage the facility. Learn how the facility works, then compare the fees and responsibilities.
How invoice discounting works →
Invoice discounting explained
Understand your invoice finance options.
What is invoice discounting?
Invoice discounting explained for UK businesses: what it means, who collects payments and how the facility releases working capital.
Read the guide EssentialsInvoice finance: types, costs and how it works
Understand invoice finance, invoice discounting, factoring, selective funding and CHOCCS. Compare collections, confidentiality and funding scope.
Read the guide Finance typesConfidential invoice discounting
How confidential invoice discounting works, what customers may see and the questions to ask about collections and disclosure.
Read the guide Finance typesSelective invoice finance and single invoice discounting
Selective invoice finance explained: selected customer accounts, single invoices, spot factoring and selective discounting, with costs and contract checks.
Read the guide Finance typesInvoice factoring: funding and credit control explained
How invoice factoring works, who collects customer payments, the costs to compare and how it differs from discounting and CHOCCS.
Read the guide Finance typesCHOCCS: Client Handles Own Credit Control service
CHOCCS stands for Client Handles Own Credit Control service. Understand how it works, customer disclosure, costs and responsibility for collections.
Read the guideFree planning tool
How much could you borrow against your invoices?
Model eligible debt, advance rates, reserves and existing drawings. Then estimate annual funding and service costs separately.
Use the invoice discounting calculator →Provider research
Compare invoice discounting providers.
Read profiles of four UK providers, with links to their published product details. Compare the advance, eligibility requirements and services, then request written terms for your business.
HSBC UK
Features, caveats and questions to ask.
Read profile →Provider profileLloyds Bank
Features, caveats and questions to ask.
Read profile →Provider profileNatWest
Features, caveats and questions to ask.
Read profile →Provider profileBibby Financial Services
Features, caveats and questions to ask.
Read profile →
The details matter
Check that the funding fits your cash flow.
Test late customer payments, minimum fees and lower sales. Read the recourse, security and exit provisions before committing.
Understand the risks →Your business model matters
Find guidance for your sector.
Invoice discounting for recruitment agencies
Match recruitment payroll to customer collections, with guidance on approved timesheets, debtor limits and credit-control requirements.
Read the guide By sectorInvoice discounting for manufacturing businesses
Understand the gap between buying materials, producing goods, invoicing customers and drawing against eligible receivables.
Read the guide By sectorInvoice discounting for transport and haulage
Consider fuel, wages, proof of delivery and customer payment terms when evaluating invoice finance for a haulage business.
Read the guide By sectorInvoice discounting for construction businesses
Distinguish invoices from applications for payment, retentions and staged contracts before choosing a construction finance facility.
Read the guideResearch you can check
Check the sources behind the guidance.
Our guides link to the British Business Bank, UK Finance and providers' published documents. Worked examples show how the figures are calculated, and provider profiles identify the terms you need to confirm.
Read our editorial policy →
Ready to explore invoice discounting?
Estimate the funding your invoices could support, prepare your business information and discuss the options available.
Funding enquiries are handled through our Business Loan Options service.