April 14, 2026
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Best Selective Invoice Finance Lenders for Defence Contractors

Discover the best selective invoice finance lenders tailored for defence contractors in the UK. Learn how to improve cash flow and secure funding with the right lender.
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Best Selective Invoice Finance Lenders for Defence Contractors
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 Selective Invoice Finance Lenders for Defence Contractors

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 2026-04-08.

1. Funding Agent

Funding Agent offers a range of unsecured business finance options aimed at UK SMEs. It is suitable for those looking for straightforward comparisons and quick eligibility feedback. The platform emphasises a fast, flexible application process with no collateral requirements.

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. Time Finance

Time Finance specialises in secured business finance products catering to SMEs, with a focus on asset-backed lending. This provider suits businesses needing flexibility and prompt customer service, often requiring collateral for larger loans. Their offerings support a variety of repayment structures and sector-specific financing needs.

Loan Details

  • Min Amount: £50,000
  • Max Amount: £500,000
  • Min APR: 7.5%
  • Max APR: 20%
  • Loan Duration: 1 to 5 years ⌛

Services & Industries

  • Finance Types: Secured business loans, Invoice finance, Asset finance
  • Industries: Manufacturing, Construction

Pros

  • Specialist in secured loans
  • Flexible terms

Cons

  • Requires collateral for larger loans

Sources: Source Source

3. Lloyds Bank

Lloyds Bank provides traditional bank loans focused on supporting SME growth and equipment financing. It is appropriate for businesses seeking competitive terms and longer loan durations with potentially stricter eligibility requirements. Options typically include varied repayment schedules and tailored business support.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £1,000,000
  • Min APR: 6%
  • Max APR: 12%
  • Loan Duration: Up to 25 years ⌛

Services & Industries

  • Finance Types: Small business loans, Commercial loans
  • Industries: Energy, Infrastructure

Pros

  • Wide range of financial products
  • Strong customer support

Cons

  • Strict eligibility criteria

Sources: Source Source

4. Kriya

Kriya provides working capital and invoice finance solutions suited to SMEs seeking improved cash flow. This provider emphasises embedded payment solutions and rapid funding decisions. It is suited for businesses requiring flexible terms and varying repayment options aligned with revenue timings.

Loan Details

  • Min Amount: £10,000
  • Max Amount: £500,000
  • Min APR: 7%
  • Max APR: 21.9%
  • Loan Duration: 1 to 5 years ⌛

Services & Industries

  • Finance Types: Working capital loans, Invoice finance
  • Industries: Retail, Technology

Pros

  • Personalized interest rates
  • Quick funding decisions

Cons

  • Higher APR for short-term loans

Sources: Source Source

5. Growth Lending

Growth Lending focuses on providing larger-scale growth capital for SMEs pursuing expansion or M&A activities. Its offerings cater to businesses with higher funding requirements and longer-term repayment preferences. This lender suits borrowers able to meet higher minimum loan sizes and seeking structured finance solutions.

Loan Details

  • Min Amount: £2,000,000
  • Max Amount: £10,000,000
  • Min APR: 10%
  • Max APR: 16.072%
  • Loan Duration: 3 to 5 years ⌛

Services & Industries

  • Finance Types: Growth capital, Term loans
  • Industries: Healthcare, SaaS

Pros

  • High loan amounts for growth
  • M&A financing

Cons

  • High minimum loan size

Sources: Source Source

6. Skipton Business Finance

Skipton Business Finance specialises in asset-based lending and invoice finance, supporting SMEs until payment collection is complete. It is ideal for businesses seeking flexible funding linked to outstanding invoices and assets. The lender offers tailored products with varying durations and costs based on specific agreements.

Loan Details

  • Min Amount: £50,000
  • Max Amount: £0
  • Min APR: 0%
  • Max APR: 0%
  • Loan Duration: Varies by product ⌛

Services & Industries

  • Finance Types: Invoice factoring, Asset-based lending
  • Industries: Manufacturing, Logistics

Pros

  • Flexible invoice finance
  • No banking charges

Cons

  • Interest may apply post-agreement

Sources: Source Source

7. Iwoca

Iwoca delivers short-term, unsecured business loans via a fast, online application process. It suits SMEs requiring quick access to finance with flexible loan structures and no early repayment penalties. The lender accommodates varied risk profiles with corresponding APR ranges.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £1,000,000
  • Min APR: 18%
  • Max APR: 49%
  • Loan Duration: 1 day to 24 months ⌛

Services & Industries

  • Finance Types: Unsecured business loans, Short-term loans
  • Industries: Retail, Food and Beverage

Pros

  • Quick application process
  • No early repayment fees

Cons

  • High APR for riskier profiles

Sources: Source Source

8. White Oak

White Oak offers a variety of business loan products targeting SMEs seeking support for cash flow and expansion. Its products provide flexible repayment terms and cover multiple sectors. The lender suits those requiring operational liquidity with access to invoice finance among other options.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £2,000,000
  • Min APR: 7.5%
  • Max APR: 18.9%
  • Loan Duration: 1 to 5 years ⌛

Services & Industries

  • Finance Types: Business term loans, Invoice finance
  • Industries: Professional Services, Innovative startups

Pros

  • Large loan amounts
  • Wide industry coverage

Cons

  • High arrangement fees

Sources: Source Source

9. Bizcap

Bizcap delivers flexible, unsecured financing options with fast approval to support SMEs in immediate growth and investment needs. This provider suits businesses requiring quick access without extensive documentation. Products generally offer short-term funding with straightforward repayment terms.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £1,000,000
  • Min APR: 0%
  • Max APR: 0%
  • Loan Duration: 3 to 12 months ⌛

Services & Industries

  • Finance Types: Unsecured loans, Bridging finance
  • Industries: General SME sector

Pros

  • Fast funding
  • No early repayments fees

Cons

  • Limited to short-term finance

Sources: Source Source

10. Nucleus Commercial Finance

Nucleus Commercial Finance provides structured, unsecured business loans tailored for UK SMEs seeking flexible and rapid funding. It offers repayment options suitable for various sectors with an emphasis on fast approval. This lender fits businesses looking for mid-sized loans with adaptable terms.

Loan Details

  • Min Amount: £3,000
  • Max Amount: £2,000,000
  • Min APR: 8%
  • Max APR: 19.9%
  • Loan Duration: 6 months to 7 years ⌛

Services & Industries

  • Finance Types: Unsecured business loans, Revenue-based finance
  • Industries: Multiple sectors

Pros

  • Fast approval
  • Flexible terms

Cons

  • High APR for unsecured options

Sources: Source Source

How to choose

When selecting selective invoice finance lenders for defence contractors, prioritise understanding lender specialisations and funding flexibility. Assess if the finance aligns with your contract types and payment schedules. Consider the speed of funding and whether collateral requirements suit your business assets. Evaluate eligibility criteria and how repayments fit with your cash flow cycles. It is important to review all fees and contractual terms to ensure clarity before proceeding with an application.

Conclusion

The choice of lender depends on the specific use case and business needs. Traditional banks provide competitive rates and long-term options but have stricter criteria. Specialist invoice finance providers offer flexible and asset-based solutions suitable for particular industries including defence. Brokers and platforms like Funding Agent help compare multiple lenders quickly but always verify terms directly. Matching lending solutions to your operational and financial requirements ensures better outcomes for loans in the hundreds of thousands of pounds.

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FAQs

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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
2Time FinanceTime Finance offers comprehensive finance solutions tailored for SMEs, including secured loans, with a focus on flexibility and responsive customer service.£50,000–£500,000; 7.5%–20% APR; 1 to 5 years
3Lloyds BankLloyds Bank provides business loans tailored to the needs of SMEs, offering competitive terms and support for business growth and equipment financing.£1,000–£1,000,000; 6%–12% APR; Up to 25 years
4KriyaKriya offers innovative finance options focusing on embedded business payments and working capital loans for SMEs seeking cash flow solutions.£10,000–£500,000; 7%–21.9% APR; 1 to 5 years
5Growth LendingGrowth Lending supports SMEs with growth capital ranging from £2m to £10m, targeting expansion and M&A initiatives.£2,000,000–£10,000,000; 10%–16.072% APR; 3 to 5 years
6Skipton Business FinanceSkipton Business Finance specializes in asset-based lending and invoice finance services, providing funding solutions until full payment is received.£50,000–£0; 0%–0% APR; Varies by product
7IwocaIwoca provides short-term business finance with rapid online application and approval processes, supporting SMEs through flexible loan structures.£1,000–£1,000,000; 18%–49% APR; 1 day to 24 months
8White OakWhite Oak UK caters to SMEs with a range of business loan products designed to aid cash flow, expansion, and operational liquidity.£5,000–£2,000,000; 7.5%–18.9% APR; 1 to 5 years
9BizcapBizcap offers flexible loans with fast approval processes, catering to SMEs that require immediate funding for growth and investment without exhaustive documentation.£5,000–£1,000,000; 0%–0% APR; 3 to 12 months
10Nucleus Commercial FinanceNucleus Commercial Finance provides structured business loans with a focus on flexibility and rapid funding, offering solutions up to £2m for UK SMEs.£3,000–£2,000,000; 8%–19.9% APR; 6 months to 7 years
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