Independent Comparison — Updated 2026

Compare Invoice Finance for UK Businesses

Stop waiting 30, 60, or 90 days for customers to pay. Release up to 90% of your invoice value within 24 hours with invoice factoring, discounting, or selective finance from the UK's leading providers.

Recommended Partner

Access 80+ Invoice Finance Lenders Through Tide

Tide has partnered with Funding Options to create the UK's largest credit marketplace. Compare invoice finance from over 80 lenders in one simple application — including factoring, invoice discounting, and selective invoice finance. Check eligibility in minutes without affecting your credit score, and get matched with the best provider for your business.

80+

Lenders

£1,000

Finance From

Up to 90%

Advance Rate

4.4/5

Trustpilot

Access over 80 invoice finance lenders through one simple application

Finance from £1,000 — suitable for businesses of all sizes

Factoring, discounting, and selective invoice finance all available

Check eligibility in minutes without affecting your credit score

If you're a Tide member, apply directly within the Tide app

Dedicated support to match you with the right lender

Rated 'Excellent' on Trustpilot with over 33,000 reviews

Also access business loans, asset finance, and revolving credit

Types of Invoice Finance

There are several ways to release cash from your unpaid invoices. The right option depends on your turnover, how many invoices you raise, and whether you want to outsource credit control.

Invoice Factoring

Sell your unpaid invoices to a finance provider who advances you up to 90% of the invoice value immediately. The provider then collects payment directly from your customer. You receive the remaining balance (minus fees) once the customer pays.

Best for: Businesses comfortable with the provider contacting their customers directly.

Advance up to 90% of invoice value within 24 hours
The finance provider manages credit control and collections
Reduces your admin burden — no chasing late payers
Can include bad debt protection (non-recourse factoring)

Invoice Discounting

Similar to factoring, but you retain control of your sales ledger and continue collecting payments from customers yourself. The finance provider remains invisible to your clients — a confidential facility. Typically suited to larger businesses.

Best for: Established businesses that want to maintain direct customer relationships.

Confidential — your customers don't know you're using finance
You retain full control of credit control and collections
Advance up to 85–90% of invoice value
Typically available for businesses with £500K+ annual turnover

Selective Invoice Finance

Choose which individual invoices to finance rather than committing your whole sales ledger. This gives you maximum flexibility — fund a single large invoice or a batch of invoices when you need a cash injection, without a long-term contract.

Best for: Businesses with occasional cash flow gaps or a few large invoices.

No commitment to finance all invoices — pick and choose
No long-term contracts with many providers
Ideal for project-based businesses with lumpy income
Available through Tide's marketplace of 80+ lenders

Whole Turnover Factoring

A facility that covers your entire sales ledger — every invoice is automatically funded as it's raised. This provides a continuous, predictable cash flow solution that scales with your business. The more invoices you raise, the more funding you can access.

Best for: Fast-growing businesses with high invoice volumes needing consistent cash flow.

Automatic funding as soon as invoices are raised
Scales naturally with your sales growth
Includes full credit control and collections service
Often includes credit insurance against customer insolvency

Not Sure Which Invoice Finance Option Suits You?

Compare invoice finance from 80+ lenders through Tide's marketplace — or let Merchant Insight find you the best deal.

How Invoice Finance Works

Raise an Invoice

You deliver goods or services and raise an invoice to your customer with standard payment terms (30, 60, or 90 days).

Submit to Provider

Send the invoice to your finance provider. Through Tide, this can be automated — invoices are funded as soon as they're raised.

Receive Up to 90%

The provider advances up to 90% of the invoice value into your account, typically within 24 hours. Use the cash immediately.

Customer Pays

When your customer pays the invoice, the provider deducts their fee and releases the remaining balance to you.

Invoice Finance at a Glance

Feature	Factoring	Discounting	Selective
Advance Rate	Up to 90%	Up to 90%	Up to 90%
Confidential	No — provider contacts customers	Yes — invisible to customers	Often available
Credit Control	Provider manages	You manage	You manage
Commitment	Whole ledger	Whole ledger	Pick & choose invoices
Min Turnover	Varies (£50K+)	£500K+ typical	No minimum
Contract Length	12–24 months	12–24 months	No contract (often)
Best For	SMEs wanting admin reduction	Larger, established businesses	Occasional cash flow needs
Available via Tide	Yes (80+ lenders)	Yes (80+ lenders)	Yes (80+ lenders)

What to Consider Before Choosing Invoice Finance

Cost Structure

Invoice finance costs include a service fee (% of invoice value) and a discount charge (interest on the advance). Compare the total cost, not just the headline rate. Through Tide's marketplace, you can see quotes from multiple lenders side by side.

Recourse vs Non-Recourse

With recourse facilities, you're liable if a customer doesn't pay. Non-recourse facilities include bad debt protection — the provider absorbs the loss. Non-recourse costs more but protects you from customer insolvency.

Customer Relationships

If confidentiality matters to you, choose invoice discounting or selective finance. With factoring, the provider contacts your customers directly. Consider how your clients might perceive third-party collection communications.

Frequently Asked Questions

What is invoice finance?

Invoice finance is a way of borrowing money against the value of your unpaid invoices. Instead of waiting 30, 60, or 90 days for customers to pay, a finance provider advances you a percentage (typically 80–90%) of the invoice value upfront — usually within 24 hours. When your customer pays the invoice, the provider deducts their fee and releases the remaining balance to you. It's one of the most effective ways to improve business cash flow without taking on traditional debt.

How much does invoice finance cost?

Costs typically include a service fee (0.5–3% of invoice value) and a discount charge (1–3% per annum on the amount advanced). The total cost depends on your turnover, industry, customer creditworthiness, and the type of facility. Through Tide's marketplace, you can compare rates from 80+ lenders to find the most competitive deal for your business.

What's the difference between factoring and invoice discounting?

The key difference is who manages collections. With factoring, the finance provider contacts your customers and collects payments on your behalf — your customers know you're using finance. With invoice discounting, the facility is confidential — you continue collecting payments yourself and your customers are unaware. Discounting is typically available to larger, more established businesses.

Will my customers know I'm using invoice finance?

It depends on the type. With invoice factoring, yes — the provider contacts your customers directly to collect payment. With confidential invoice discounting, no — the facility is invisible to your customers and you maintain all direct communication. Selective invoice finance can also be arranged confidentially with some providers.

What size business is invoice finance suitable for?

Invoice finance is available for businesses of all sizes, from sole traders with a handful of invoices to large enterprises with multi-million-pound sales ledgers. Through Tide's marketplace, you can access invoice finance from £1,000 upwards. Whole turnover facilities typically require a minimum annual turnover of £100,000–£250,000. Selective invoice finance has no minimum commitment.

How quickly can I access funds through invoice finance?

Once your facility is set up, funds are typically advanced within 24 hours of submitting an invoice. Initial setup can take 3–7 working days depending on the provider and the complexity of your sales ledger. Through Tide, you can check eligibility in minutes and get matched with suitable lenders quickly.

What happens if my customer doesn't pay?

This depends on whether your facility is recourse or non-recourse. With recourse factoring, you're responsible for repaying the advance if your customer defaults. With non-recourse factoring, the provider absorbs the bad debt (subject to credit limits). Non-recourse facilities cost slightly more but give you protection against customer insolvency. Many whole turnover facilities include credit insurance as standard.

Can I use invoice finance alongside other business funding?

Yes. Invoice finance is often used alongside other forms of funding like business loans, asset finance, or revolving credit. However, because your invoices act as security for the facility, you typically can't use the same invoices as collateral for another loan. It's worth discussing your full funding needs with a broker or through Tide's marketplace to find the best combination.

Ready to Unlock Cash From Your Invoices?

Compare invoice finance from 80+ lenders through Tide, or let Merchant Insight find you the best deal. Release up to 90% of your invoice value within 24 hours.

Disclosure: Tide acts as a marketplace — final rates and terms depend on the individual lender you're matched with. Merchant Insight may receive a referral fee if you apply through our link. This does not affect our editorial independence or the rates you receive. All provider statistics, lender counts, and Trustpilot scores were believed accurate at time of writing and are sourced from publicly available information. Please verify current figures directly with the provider.