Businesses will be freed from restrictive clauses in contracts that prevent them from gaining invoice finance when new measures come into force early next year.
The move will open up more funding opportunities and specifically benefit SMEs and has been broadly welcomed by businesses in the North West.
Invoice finance allows businesses to apply for finance using invoices for money owed to them as security. This means that, in some instances, they can get money faster than if they waited for their customers to pay them.
More than 44,000 businesses receive over £19bn of funding this way at any one time, according to the Asset Based Finance Association, which represents the invoice finance industry in the UK.