Invoice Factoring UK — Unlock Cash Flow from Unpaid Invoices
Cash tied up in unpaid invoices can create serious pressure for SMEs. Waiting 30, 60, or even 90 days for clients to pay slows growth, makes it harder to cover suppliers, and leaves you short on working capital.
With invoice factoring from Funding Freddie, UK businesses can unlock £50k–£500k against their outstanding invoices. This allows you to access cash immediately while your clients continue with their normal payment terms.
What is Invoice Factoring?
Invoice factoring is a type of finance that advances your business a percentage of the value of your unpaid invoices.
Instead of waiting for clients to settle, you sell the receivables to a factoring company. They release the funds to you, and when the client pays, the balance is settled.
This option is particularly popular with businesses that:
Operate on long billing cycles
Have clients who consistently pay late
Need cash to cover staff, suppliers, or stock
Want to grow without waiting on cash flow gaps
Why SMEs Use Invoice Factoring
Invoice factoring is one of the most flexible funding tools available to SMEs in the UK.
It provides:
Immediate access to cash that is already owed to you
Funding from £50k–£500k, tailored to invoice value and turnover
Lower risk compared to taking on new debt
Flexibility to scale as your invoice volume grows
Instead of adding debt to your balance sheet, you are simply bringing forward the money your business has already earned.
Real Business Success Stories
Instead of adding debt to your balance sheet, you are simply bringing forward the money your business has already earned.
Case Study 1: Leeds Creative Agency (£75k)
A design agency struggled with long client payment cycles, leaving them unable to take on bigger projects. With Freddie’s help, they factored £75k worth of invoices and gained the cash flow to hire freelancers for a new contract.
Case Study 2: Croydon Retailer (£100k)
A retailer had £100k in unpaid invoices with suppliers demanding payment. Invoice factoring released the capital they needed, allowing them to stay stocked during peak demand.
Case Study 3: Birmingham Manufacturer (£250k)
A manufacturer faced late payments from overseas clients. By factoring £250k in receivables, they kept production moving and secured materials for future orders.
Who is Invoice Factoring Right For?
Invoice factoring works best for businesses that:
Issue high-value invoices on net 30–90 day terms
Serve other businesses (B2B)
Want to smooth cash flow without additional debt
Need at least £50k in funding to support operations
Industries that benefit most:
Manufacturing and logistics
Wholesale and distribution
Creative and marketing agencies
Professional services firms
Invoice Factoring vs Other Funding Options
Invoice Factoring vs Working Capital Loans
Factoring releases cash from invoices you have already issued, while loans provide new credit.
Invoice Factoring vs Overdrafts
Overdrafts are limited in size and can be withdrawn by banks at short notice. Factoring scales with your sales.
Invoice Factoring vs Expansion Loans
Expansion loans fund long-term growth projects, while factoring solves immediate cash flow challenges.
Want to compare all our SME funding options? Visit our Funding Solutions hub.
How It Works With Funding Freddie
Apply Online
Share details of your business and invoices.
Get Matched
We connect you with FCA-authorised lenders who specialise in invoice factoring.
Choose Your Offer
Compare terms and select the best fit for your business.
Unlock Your Cash
Access funds in as little as 48 hours.
FAQ's
FAQs — Invoice Factoring UK
We know applying for business funding can feel overwhelming. That’s why Freddie makes it simple, clear, and transparent.
What is the minimum amount I can factor?
👉 Funding Freddie works with SMEs needing at least £50k in invoice finance.
How quickly can I access the funds?
👉 Approvals can take as little as 24 hours, with cash released in 48–72 hours.
Do I lose control of my invoices?
👉 No. Lenders only advance funds; your clients continue paying as normal.
Is invoice factoring a loan?
👉 No. It is an advance against money already owed to your business.
Does it affect client relationships?
👉 No. Clients pay on the same terms; only your access to cash changes.
Why Choose Freddie for Invoice Factoring?
At Funding Freddie, we make invoice factoring simple, fast, and transparent.
Minimum funding from £50k
Multiple lenders competing for your application
FCA-authorised partners only
Tailored offers for SMEs across the UK
Business Funding Made Simple, Safe & Transparent
Address: Ilford Lane, Ilford, England, IG1 2SN
Email: [email protected]
Phone: 0741 410 7585
Opening Hours: Available 24/7 to answer your questions and guide you.
You can also complete our online eligibility form anytime, 24/7
Funding Freddie is a trading name of Digital Success Blueprint Ltd. Registered in England and Wales. Registered address: 411 Ilford Lane, Ilford, England, IG1 2SN.
Funding Freddie is not a lender. We act as an introducer, connecting SMEs with a panel of carefully selected FCA-authorised lenders. All loan agreements are made directly between the applicant and the lender.