April 14, 2026
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Best Selective Invoice Finance Lenders for Managed Service Providers

Discover the best selective invoice finance lenders tailored for managed service providers. Learn how to improve your cash flow and grow your MSP business effectively.
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Best Selective Invoice Finance Lenders for Managed Service Providers
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 Managed Service Providers

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 is focused on providing UK SMEs with a platform to compare various business finance products quickly and easily. It is suitable for franchise buyers and operators seeking transparent loan options with predictable terms. The service offers a straightforward application process with fast eligibility checks, without requiring collateral.

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. Nucleus Commercial Finance

Nucleus Commercial Finance specialises in flexible unsecured and secured business loans tailored to a range of UK businesses. It is typically suited for franchise buyers and companies seeking reliable lending with straightforward terms. Speedy decisions and a mix of loan structures offer practical funding options without excessive collateral demands.

Loan Details

  • Min Amount: £3,000
  • Max Amount: £2,000,000
  • Min APR: 0%
  • Max APR: 0%
  • Loan Duration: 2 to 5 years

Services & Industries

  • Finance Types: Unsecured Loans, Secured Loans
  • Industries: General Business

Pros

  • Rapid decision
  • Unsecured and secured options

Cons

  • Minimum loan amount can be high for small businesses

Sources: Source

3. iwoca

iwoca focuses on short-term, small business lending with interest based on monthly periods, catering to SMEs needing flexible financing. It is suitable for business owners who prefer tailored loan products with varying repayment terms and accessible credit limits. The platform offers quick financing choices, though rates can vary considerably based on term length.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £1,000,000
  • Min APR: 6%
  • Max APR: 49%
  • Loan Duration: 1 to 60 months

Services & Industries

  • Finance Types: Small Business Loans, Working Capital Loans
  • Industries: Small and Medium Enterprises

Pros

  • Tailored financing
  • Competitive rates

Cons

  • Higher rates for longer loans

Sources: Source

4. Barclays

Barclays provides a broad range of business financial services including loans with tailored advice for SMEs. It suits franchisees and small businesses looking for personalised lending solutions and flexible repayment options. Typically, loans require eligibility checks and may be better suited to existing customers.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £50,000
  • Min APR: 3.5%
  • Max APR: 24.9%
  • Loan Duration: 1 to 10 years

Services & Industries

  • Finance Types: Business Loans, Lines of Credit
  • Industries: Various

Pros

  • Personalized service
  • Wide range of loan amounts

Cons

  • Limited to existing customers

Sources: Source

5. Lloyds Bank

Lloyds Bank is a traditional lender offering structured loans with competitive fixed rates for various business needs. It caters to SMEs and franchise buyers seeking stable financing with longer repayment durations. The application process may be more involved but offers solid funding options for established businesses.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £1,000,000
  • Min APR: 3.6%
  • Max APR: 20%
  • Loan Duration: 1 to 25 years

Services & Industries

  • Finance Types: Business Loans, Asset-Based Lending
  • Industries: General Business

Pros

  • Fixed rates
  • Large loan amounts

Cons

  • Lengthy application process

Sources: Source

6. NatWest

NatWest offers business loans and revolving credit tailored to UK companies, suitable for those seeking adaptive borrowing solutions. It is well suited for SMEs and franchise operators wanting flexible repayment plans and a variety of financing options. The lender often requires detailed eligibility confirmation before approval.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £50,000
  • Min APR: 3.5%
  • Max APR: 15.5%
  • Loan Duration: 1 to 10 years

Services & Industries

  • Finance Types: Business Loans, Revolving Credit
  • Industries: General Business

Pros

  • Quick approvals
  • Tailored financial solutions

Cons

  • Strict eligibility criteria

Sources: Source

7. Funding Circle

Funding Circle focuses on peer-to-peer lending, offering unsecured loans for a variety of UK business needs. It typically suits franchise buyers and small to medium enterprises seeking straightforward loan terms with transparent pricing. The process is designed for speed and avoids early repayment penalties.

Loan Details

  • Min Amount: £10,000
  • Max Amount: £750,000
  • Min APR: 3.9%
  • Max APR: 25%
  • Loan Duration: 6 months to 5 years

Services & Industries

  • Finance Types: Peer-to-Peer Loans, Unsecured Loans
  • Industries: General Business

Pros

  • Fast decision making
  • No early repayment fees

Cons

  • Higher risk for complex applications

Sources: Source

8. Virgin StartUp

Virgin StartUp is a non-profit lender targeting entrepreneurs and startups, providing loans with mentoring and guidance. It is ideal for new franchise buyers and early-stage businesses looking for supportive funding. The focus is on accessible loans with reasonable terms for startups, though amounts are relatively small.

Loan Details

  • Min Amount: £500
  • Max Amount: £25,000
  • Min APR: 6%
  • Max APR: 12%
  • Loan Duration: 1 to 5 years

Services & Industries

  • Finance Types: Startup Loans
  • Industries: Startups

Pros

  • Includes mentoring
  • Supports startups

Cons

  • Limited to startups

Sources: Source

9. Skipton Business Finance

Skipton Business Finance specialises in asset-based lending and invoice finance, aimed at improving cash flow for UK SMEs. It suits franchise operators and businesses needing flexible finance secured by receivables or assets. The funding is adaptable, with varied durations depending on the product and arrangement complexity.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £500,000
  • Min APR: 0%
  • Max APR: 0%
  • Loan Duration: Varies by product

Services & Industries

  • Finance Types: Invoice Finance, Asset-Based Lending
  • Industries: SMEs

Pros

  • Flexible funding options
  • Long-term support

Cons

  • Complex arrangement process

Sources: Source

10. Kriya

Kriya provides invoice finance and business loans designed for quick capital access and seamless integration with business systems. It is suitable for UK SMEs and franchisees needing efficient funding with manageable terms. Loans are structured to accommodate medium-sized amounts with flexible repayment solutions.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £300,000
  • Min APR: 0.75%
  • Max APR: 3%
  • Loan Duration: 1 to 36 months

Services & Industries

  • Finance Types: Invoice Finance, Business Loans
  • Industries: General Business, Tech

Pros

  • Quick access to funds
  • Seamless integration

Cons

  • Limited to small to medium loan amounts

Sources: Source

How to choose

When selecting the best selective invoice finance lenders for Managed Service Providers, consider the loan size and APR that fit your operational budget and cash flow cycles. Check eligibility criteria closely to ensure you qualify and assess how quickly funds can be accessed versus the flexibility of repayment terms. Evaluate whether unsecured or asset-backed finance is more suitable for your business structure and risk tolerance. Understand the fees involved, including any early repayment charges, and how these might impact your overall cost. Finally, assess lender support and whether brokered access or direct lending aligns better with your needs.

Conclusion

Choosing the right lender depends on matching the provider type to your business needs and use case. Bank lenders often suit established businesses requiring structured loans and longer terms. Broker platforms like Funding Agent offer quick comparisons and streamlined applications. Specialist lenders or invoice finance providers focus on asset-backed funding and quicker capital access but may have more complex arrangements. Considering your loan size, speed requirements, and business model will help you find the best option for a 200 thousand pounds loan or similar.

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FAQs

What is selective invoice finance?
How does invoice finance benefit managed service providers?
Who are the best selective invoice finance lenders for MSPs in the UK?
Can I choose which invoices to finance?
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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
2Nucleus Commercial FinanceOffers flexible business loan options helping UK businesses to thrive, with funding from £3k to £500k.£3,000–£2,000,000; 0%–0% APR; 2 to 5 years
3iwocaProvides small business loans with interest rates starting at 1.5% per 30 days, offering financing tailored to SME needs.£1,000–£1,000,000; 6%–49% APR; 1 to 60 months
4BarclaysOffers comprehensive financial services including business loans for SMEs with personalized financial advice.£1,000–£50,000; 3.5%–24.9% APR; 1 to 10 years
5Lloyds BankLarge financial institution offering structured business loans from £1,000 with competitive fixed rates.£1,000–£1,000,000; 3.6%–20% APR; 1 to 25 years
6NatWestProvides financial solutions including business loans and revolving credit facilities tailored to the needs of UK businesses.£1,000–£50,000; 3.5%–15.5% APR; 1 to 10 years
7Funding CircleSpecializes in peer-to-peer lending, with loans ranging from £10k to £750k for a variety of business needs.£10,000–£750,000; 3.9%–25% APR; 6 months to 5 years
8Virgin StartUpNon-profit arm of Virgin offering startup loans to UK entrepreneurs with mentoring and guidance.£500–£25,000; 6%–12% APR; 1 to 5 years
9Skipton Business FinanceProvides asset-based lending and invoice finance solutions to UK SMEs to enhance cash flow.£5,000–£500,000; 0%–0% APR; Varies by product
10KriyaFormerly known as MarketFinance, Kriya provides invoice financing and business loans designed for seamless integration and quick access to capital.£5,000–£300,000; 0.75%–3% APR; 1 to 36 months