How Much Can I Borrow Against My Invoices?
You can access 70-95% of each invoice's face value. So on £100,000 of outstanding invoices, you would get £70,000-£95,000 upfront. It is not technically borrowing - it is an advance against money your customers already owe you. The remaining 5-30% (the "retention") is released when your customer pays, minus the provider's fees.
Invoice finance typically advances 70-95% of each invoice's value. On £100k of outstanding invoices, you'd receive £70k-£95k. The exact percentage depends on your industry, customer creditworthiness, and the provider. The remaining balance is released when the customer pays, minus fees. More detail + scope
This page covers
How much funding you can access through invoice finance relative to your outstanding invoices
Not covered here
Cost of invoice finance (see /questions/what-percentage-do-factoring-companies-take/), how it works (see /guides/how-invoice-finance-works/)
What Determines Your Advance Rate
The advance percentage depends on three things. First, your industry - recruitment and professional services get higher advances (85-95%) because invoices are clean. Construction gets lower (70-80%) because of retention clauses and disputes. Second, your customers - blue-chip debtors mean higher advance rates because the provider knows they will pay. Third, the provider - some are more generous than others. Always compare.
What Happens to the Other 5-30%
The portion the provider holds back is called the "retention." It is not a fee - it is a buffer. When your customer pays the invoice in full, the provider releases the retention to you, minus their service charge and discount charge. If your customer pays less (because of a credit note or dispute), the retention absorbs the shortfall so the provider does not end up out of pocket.
Can You Access More Than 95%?
Rarely. Some providers offer up to 100% in specific circumstances (strong trading history, excellent debtor quality), but 90% is the practical ceiling for most businesses. If a provider is offering 100% with no caveats, be cautious - they may be making up the difference with higher fees elsewhere.
Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.
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