Top 10 Lenders for a £100,000 Invoice Finance Loan in the UK (2026)

Invoice finance lets you borrow against the value of your unpaid customer invoices rather than waiting 30, 60, or 90 days for payment. With a £100,000 facility, the lender typically advances you between 80% and 90% of each invoice value up to your total facility limit. You submit your invoices to the lender, they release the bulk of the funds within 24 to 48 hours, and once your customer settles the invoice, you receive the remaining balance minus the lender's fee. There are two main structures: invoice factoring, where the lender manages your sales ledger and collects payment directly from your customers, and invoice discounting, where you retain control of collections and your customers are usually unaware of the arrangement.

Most UK-based limited companies and LLPs that sell goods or services to other businesses on credit terms can qualify for invoice finance. Lenders will typically want to see that you have a reliable spread of creditworthy business customers, a track record of fulfilling orders without disputes, and annual turnover that can comfortably support a £100,000 facility. Startups and younger businesses may still be considered, though lenders will focus more heavily on the quality of your debtor book. Sole traders and partnerships can also apply, but lender appetite varies. Your customers should generally be UK-based or in recognised jurisdictions, and your invoices must be for completed work, not pro-forma or stage payments.

Invoice finance costs are made up of two main components: a service fee, which covers the lender's administration and credit control, and a discount charge, which is the interest applied to the funds you actually draw down. Service fees vary depending on your turnover, the number of invoices, and whether you choose factoring or discounting. The discount charge is usually calculated as a margin over the Bank of England base rate and is applied only to the funds you use. Most £100,000 facilities are structured on a rolling 12-month contract, though some lenders offer shorter initial terms. Always ask about additional charges such as arrangement fees, audit fees, or early termination costs before committing.

An unsecured business loan provides a fixed lump sum upfront with set monthly repayments over an agreed term, while invoice finance grows in line with your sales ledger and offers ongoing access to working capital. Invoice finance does not require property or personal guarantees in the same way some unsecured loans might, because the invoices themselves act as the security. The cost structure also differs: unsecured loans have fixed interest rates and predictable repayments, whereas invoice finance fees fluctuate with your borrowing. For businesses with strong credit control and high invoice volumes, invoice finance often works out more affordable. However, if you prefer a one-off injection with no ongoing administration, an unsecured loan may be simpler.

Start by checking whether the lender has experience in your specific industry, as sector knowledge can make a real difference to the service you receive. Look at their advance rate and compare it across at least three providers. Scrutinise the fee structure carefully: some lenders bundle costs into a single percentage while others separate service fees, discount charges, and ancillary costs. Ask about hidden charges such as unused facility fees, renewal costs, and early exit penalties. Check online reviews and broker comparisons to understand how each provider handles customer service, collections, and dispute resolution. Also confirm whether they offer both factoring and discounting so you can switch as your business needs evolve.

It depends on what you are trying to fund. Invoice finance is ideal if you need working capital to cover the gap between issuing invoices and receiving payment, making it a natural fit for businesses with strong B2B sales on credit terms. Asset finance is better suited to purchasing equipment, vehicles, or machinery, where the asset itself secures the borrowing. Trade finance works well if you need to pay suppliers upfront for stock or raw materials before you can sell to your end customer. Many established SMEs use a combination: invoice finance for day-to-day cash flow, asset finance for capital expenditure, and trade finance when importing goods. Speak to a commercial finance broker who can assess your full situation and structure the right mix.