March 26, 2026
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Best Invoice Financing Lenders for the Software Development Industry

Discover the best invoice financing lenders tailored for the software development industry in the UK. Learn how to improve cash flow with expert tips and trusted lenders.
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Best Invoice Financing Lenders for the Software Development Industry
Abdus-Samad Charles
Finance Writer

Abdus-Samad Charles is a finance writer and the Head of Content at Funding Agent, with four years’ experience creating practical, easy-to-follow, SEO-informed guidance for UK small and medium-sized businesses. He specialises in turning complex funding topics, like eligibility criteria, documentation requirements, approval timelines, and lender expectations, into clear, research-led resources that are easy to find and help business owners make confident, informed decisions.

Best Invoice Financing Lenders for the Software Development Industry

For UK franchise buyers and operators, this guide compares loan periods and amounts, APRs, and terms across leading providers, with a focus on eligibility and fit. Amounts that could not be verified are left blank, prices accurate as of 2026-03-23.

1. Funding Agent

Funding Agent provides a platform for UK SMEs to compare multiple business finance options efficiently. It is typically suitable for businesses seeking quick access to unsecured working capital without lengthy collateral requirements. The service focuses on a fast, straightforward application process with flexible repayment options and brokered access to a range of lenders.

Loan Details

  • Min Amount: £10,000
  • Max Amount: £1,000,000
  • Min APR: 4%
  • Max APR: 20%
  • Loan Duration: 3–60 months ⌛

Services & Industries

  • Finance Types: Unsecured business loans, MCA Loans, Working capital
  • Industries: UK SME's

Pros

  • fastest and easiest application process
  • No collateral required

Cons

  • lower track record, only trading 1 year

Sources: Funding Agent

2. Lloyds Bank

Lloyds Bank is a major UK bank offering a wide array of financial products including invoice financing. It typically caters to small through to large businesses needing structured financing solutions with established banking relationships. Products generally provide a balance of competitive terms, lending capacity, and bank-level security or collateral preferences.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £15,000,000
  • Min APR: 6.9%
  • Max APR: 12.5%
  • Loan Duration: 6–60 months ⌛

Services & Industries

  • Finance Types: Invoice Financing, Business Loans
  • Industries: Manufacturing, Energy

Pros

  • Large lending capacity
  • Wide range of services

Cons

  • Strict eligibility criteria

Sources: Source

3. Bibby Financial Services

Bibby Financial Services is a specialist in invoice finance, focusing on flexible month-to-month terms for UK SMEs. It suits companies wanting adaptable cash flow solutions with less upfront commitment. The provider offers a variety of options without strict collateral requirements, prioritising ongoing support for trade and cash flow management.

Loan Details

  • Min Amount: £10,000
  • Max Amount: £300,000
  • Min APR: 2%
  • Max APR: 4%
  • Loan Duration: Month-to-month ⌛

Services & Industries

  • Finance Types: Invoice Finance, Factoring
  • Industries: SMEs, Trade

Pros

  • Flexible terms
  • Specialist support for SMEs

Cons

  • Higher rates for smaller businesses

Sources: Source

4. Close Brothers

Close Brothers delivers invoice financing and asset-based lending aimed at supporting UK SMEs with growth capital. It is suited to businesses that can meet collateral or asset security conditions. The provider balances flexibility with structured product offerings, often appealing to sectors such as aviation and marine requiring tailored financing solutions.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £100,000,000
  • Min APR: 5.9%
  • Max APR: 19.5%
  • Loan Duration: 6–60 months ⌛

Services & Industries

  • Finance Types: Invoice Financing, Asset Finance
  • Industries: Aviation, Marine

Pros

  • Strong customer support
  • Diverse financing options

Cons

  • Complex application processes

Sources: Source

5. Skipton Business Finance

Skipton Business Finance offers flexible invoice finance and discounting solutions tailored for SMEs across the UK. It suits businesses needing adaptable finance that accommodates seasonal or variable cash flow patterns. Their services often favour companies with stable turnovers and provide personalised support with a focus on flexibility.

Loan Details

  • Min Amount: £25,000
  • Max Amount: £5,000,000
  • Min APR: 4%
  • Max APR: 5%
  • Loan Duration: Flexible ⌛

Services & Industries

  • Finance Types: Invoice Financing, Discounting
  • Industries: Finance, Small Business

Pros

  • Personalized service
  • Fast approval

Cons

  • Requires high turnover

Sources: Source

6. Kriya

Kriya operates as a fintech provider delivering invoice finance and working capital loans with backing from Allica Bank. It is suited to SMEs seeking tech-enabled, innovative financing solutions with variable terms. Applicants can expect a degree of flexibility in repayment types and access to streamlined digital processes.

Loan Details

  • Min Amount: £50,000
  • Max Amount: £500,000
  • Min APR: 6%
  • Max APR: 12%
  • Loan Duration: Variable ⌛

Services & Industries

  • Finance Types: Invoice Financing, Working Capital Loans
  • Industries: E-commerce, B2B Services

Pros

  • Advanced technology
  • Quick funding

Cons

  • Limited product range

Sources: Source

7. Ultimate Finance

Ultimate Finance focuses on asset-based lending and invoice finance solutions, tailored for UK SMEs. It generally suits businesses needing long-term financing with tailored repayment schedules. The provider offers comprehensive support and diverse products for construction, logistics, and similar sectors.

Loan Details

  • Min Amount: £7,000
  • Max Amount: £10,000,000
  • Min APR: 4.5%
  • Max APR: 10%
  • Loan Duration: 1–5 years ⌛

Services & Industries

  • Finance Types: Invoice Finance, Bridging Loans
  • Industries: Construction, Logistics

Pros

  • Comprehensive support
  • Tailored products

Cons

  • Higher fees than some competitors

Sources: Source

8. Aria Finance

Aria Finance specialises in invoice financing tailored for small to medium-sized UK enterprises. It is suited to businesses seeking straightforward, streamlined finance with a focus on simplicity and quick approval. Their offerings typically involve less complex credit requirements and shorter-term arrangements.

Loan Details

  • Min Amount: £10,000
  • Max Amount: £1,000,000
  • Min APR: 3.5%
  • Max APR: 7.2%
  • Loan Duration: 3–36 months ⌛

Services & Industries

  • Finance Types: Invoice Financing
  • Industries: Retail, Services

Pros

  • Quick approval
  • Simple process

Cons

  • Limited to small scale operations

Sources: Source

9. Tide Capital

Tide Capital delivers quick and flexible invoice finance designed to help improve business liquidity efficiently. It tends to suit UK SMEs seeking short-term finance with transparent fee structures. The offering balances speed with straightforward eligibility but may have more limited customer support compared to larger institutions.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £2,000,000
  • Min APR: 3.9%
  • Max APR: 9.9%
  • Loan Duration: 1–12 months ⌛

Services & Industries

  • Finance Types: Invoice Financing
  • Industries: Technology, Startups

Pros

  • Fast funding
  • Transparent fees

Cons

  • Limited customer support

Sources: Source

10. Growth Lending

Growth Lending concentrates on providing specialised invoice and asset-based finance to high-growth businesses. It is appropriate for companies aiming to scale with tailored finance that complements rapid expansion. Their products typically offer flexibility and expert advice suited to sectors such as healthcare and software development.

Loan Details

  • Min Amount: £20,000
  • Max Amount: £3,000,000
  • Min APR: 4%
  • Max APR: 8.5%
  • Loan Duration: Flexible ⌛

Services & Industries

  • Finance Types: Invoice Financing, Asset Finance
  • Industries: Healthcare, Software

Pros

  • Tailored solutions
  • Expert advice

Cons

  • Strict eligibility requirements

Sources: Source

How to choose

When selecting the best invoice financing lender for the software development industry, focus on how loan size and APR align with your financial needs. Consider eligibility requirements carefully, as they vary widely between providers. Balance the need for speed against the flexibility of terms and repayment options. Check if the lender offers suitable security arrangements and how well their process fits your business cycle. Always review fees, advance rates, and early repayment terms before committing to ensure the solution supports your cash flow effectively.

Conclusion

Selecting the right lender depends on your business needs: banks offer standardised products with structured criteria; brokers like Funding Agent provide access to multiple options with potentially faster decisions; and specialists focus on tailored sectors or products. Matching provider type to your invoice financing requirements ensures appropriate loan size and terms. For loans around 200 thousand pounds or more, consider how flexibility, collateral, and repayment options meet your growth plans. Always verify current terms directly with providers before proceeding.

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FAQs

What is invoice financing?
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1Funding AgentFunding Agent helps UK SMEs compare business finance options fast, with a simple application journey and quick eligibility matching.£10,000–£1,000,000; 4%–20% APR; 3–60 months
2Lloyds BankLloyds Bank offers a broad range of banking services, including invoice financing for small to large businesses in the UK.£1,000–£15,000,000; 6.9%–12.5% APR; 6–60 months
3Bibby Financial ServicesBibby Financial Services is the UK’s largest independent invoice finance specialist, supporting over 8500 businesses through flexible financial solutions.£10,000–£300,000; 2%–4% APR; Month-to-month
4Close BrothersClose Brothers provides a range of financial services including asset-based lending and invoice financing supporting the growth of UK SMEs.£5,000–£100,000,000; 5.9%–19.5% APR; 6–60 months
5Skipton Business FinanceSkipton Business Finance specializes in providing flexible invoice finance solutions tailored to the needs of SMEs in the UK.£25,000–£5,000,000; 4%–5% APR; Flexible
6KriyaKriya is a fintech company offering innovative invoice finance solutions backed by Allica Bank in the UK.£50,000–£500,000; 6%–12% APR; Variable
7Ultimate FinanceUltimate Finance provides tailored financial solutions with a focus on asset-based lending and invoice finance for SMEs.£7,000–£10,000,000; 4.5%–10% APR; 1–5 years
8Aria FinanceAria Finance offers a streamlined approach to invoice financing, focusing on small to medium-sized enterprises across the UK.£10,000–£1,000,000; 3.5%–7.2% APR; 3–36 months
9Tide CapitalTide Capital provides quick and flexible invoice finance options, enabling businesses to improve their liquidity efficiently.£5,000–£2,000,000; 3.9%–9.9% APR; 1–12 months
10Growth LendingGrowth Lending focuses on providing high-growth businesses with the capital they need to expand, specializing in invoice and asset-based finance.£20,000–£3,000,000; 4%–8.5% APR; Flexible
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