Top 10 Lenders to Secure a £300,000 Invoice Finance Facility in 2026

Invoice finance allows your business to unlock the cash tied up in unpaid customer invoices. With a £300,000 facility, a lender advances you a significant portion of your outstanding invoice value (typically 80-90%) within 24 to 48 hours of raising an invoice. You continue to manage your sales ledger and collect payments from customers as normal. Once your client pays, the lender remits the remaining balance to you, minus their service fee. This larger facility size is suited to established businesses with a strong invoice book, giving you the working capital to cover day-to-day costs, invest in growth, or manage seasonal cash flow gaps without waiting for payment terms to run their course.

Lenders typically look for UK-registered limited companies or LLPs with a minimum trading history of one to two years. For a £300,000 facility, your business would usually need an annual turnover of at least £500,000 to £750,000, though this varies between providers. You must be trading B2B or B2C on credit terms and have a spread of invoices from different customers rather than relying too heavily on one or two large clients. Lenders will also review your customers' creditworthiness, as the facility is ultimately secured against their ability to pay. Businesses with CCJs, poor credit history, or those in high-risk sectors may find it more difficult to qualify, though some specialist providers cater to these situations.

Invoice finance costs generally include a service fee (a percentage of your turnover, often between 0.5% and 3%) and a discount charge (similar to interest, applied to the funds you actually draw down). Terms are typically rolling, with no fixed end date, giving you flexibility to use the facility as and when needed. The advance rate for a £300,000 facility usually sits between 80% and 90% of invoice value. Some providers also charge arrangement or facility fees upfront. It is important to compare the total cost across providers, as fee structures vary significantly. Always ask for a clear breakdown of service fees, discount charges, and any additional costs before committing.

Invoice finance differs from secured business loans and asset finance in several key ways. A secured business loan provides a lump sum with fixed repayments over a set term and requires tangible security such as property. Asset finance is tied to specific equipment or vehicles. Invoice finance, by contrast, grows with your sales — the more you invoice, the more funding you can access. It does not require property security, as the invoices themselves serve as collateral. This makes it particularly attractive for fast-growing businesses or those without significant physical assets. However, invoice finance can be more expensive than a traditional secured loan, and you need a steady stream of credit sales to make it work.

When evaluating providers for a £300,000 facility, look beyond the headline rate. Consider the advance rate offered, the speed of funding, and whether the provider offers whole-ledger or selective invoice discounting. Check if the facility is disclosed to your customers (factoring) or confidential (invoice discounting), as this affects your client relationships. Review the minimum contract term and any exit fees. Ask about credit control support if you want the provider to manage collections on your behalf. It is also wise to check the provider's reputation, FCA registration status, and reviews from other businesses in your sector. A specialist provider with experience in your industry can often offer more tailored terms.

Once your facility is set up, which can take anywhere from a few days to a couple of weeks depending on the provider and complexity, you can typically access funds within 24 to 48 hours of submitting an invoice. Some providers now offer same-day funding through digital platforms. The initial setup involves due diligence on your business and your customers, which is why the process takes longer for a first-time application. For a £300,000 facility, lenders may require more detailed financial checks, but the ongoing drawdown speed remains quick. This is one of the key advantages of invoice finance over traditional lending — you are not waiting weeks for a loan decision each time you need working capital.