April 14, 2026
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Best Selective Invoice Finance Lenders for Public Sector Suppliers

Discover the best selective invoice finance lenders for public sector suppliers in the UK. Learn how to improve cash flow and manage your invoices efficiently.
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Best Selective Invoice Finance Lenders for Public Sector Suppliers
James Laden
Co-founder and CEO

James Laden is the Co-founder and CEO of Funding Agent. He has 8 years of experience working with major financial companies in the UK, and now focuses on making business funding simpler for SMEs through a faster, technology-led application journey. He writes about business lending, alternative finance, and what lenders look for when assessing applications.

Best Selective Invoice Finance Lenders for Public Sector Suppliers

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 broker service focusing on quick comparison of business finance options tailored for UK SMEs. It is typically suitable for businesses seeking straightforward and rapid access to unsecured and working capital loans. The provider emphasises easy application, flexible repayment options, and 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. Bibby Financial Services

Bibby Financial Services specialises in invoice finance and trade finance products, focusing on cash flow support for UK businesses. It suits companies needing flexible funding structures often linked to outstanding invoices. The firm offers a range of financing backed by sector expertise, with options that can accommodate various repayment styles and credit situations.

Loan Details

  • Min Amount: £10,000
  • Max Amount: £1,000,000
  • Min APR: 3.5%
  • Max APR: 0%
  • Loan Duration: 6 to 60 months ⌛

Services & Industries

  • Finance Types: Invoice Finance, Asset Finance, Trade Finance
  • Industries: Manufacturing, Construction, Recruitment

Pros

  • Flexible financing
  • Specialist support

Cons

  • Industry restrictions

Sources: Source

3. Lloyds Bank

Lloyds Bank offers traditional bank business loans targeting UK companies aiming to expand or invest in assets. This provider suits SMEs looking for established financing with flexible repayment terms. Loans often require some level of security, and Lloyds provides a broad product range alongside brokered access options.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £1,000,000
  • Min APR: 2.9%
  • Max APR: 15%
  • Loan Duration: 1 to 25 years ⌛

Services & Industries

  • Finance Types: Business Loans, Overdrafts, Asset Finance
  • Industries: Retail, Services, Agriculture

Pros

  • Wide range of loan products
  • Strong industry reputation

Cons

  • Eligibility restrictions on high loans

Sources: Source

4. Skipton Business Finance

Skipton Business Finance specialises in asset-based lending to help SMEs in the UK access working capital. It is suitable for businesses requiring invoice finance or business loans secured against assets. The provider focuses on tailored lending solutions with a balance of loan speed and flexible terms.

Loan Details

  • Min Amount: £0
  • Max Amount: £500,000
  • Min APR: 4.5%
  • Max APR: 0%
  • Loan Duration: 12 to 60 months ⌛

Services & Industries

  • Finance Types: Invoice Finance, Business Loans, Asset Finance
  • Industries: Transport, Logistics, Retail

Pros

  • Quick approval
  • Tailored solutions

Cons

  • Limited loan types

Sources: Source

5. Close Brothers

Close Brothers provides flexible funding including asset finance aimed at UK SMEs purchasing equipment or refinancing assets. It suits businesses needing structured finance with competitive rates and secure lending. Their approach emphasises comprehensive services with standard repayment options and credit checks.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £1,000,000
  • Min APR: 4%
  • Max APR: 0%
  • Loan Duration: Up to 60 months ⌛

Services & Industries

  • Finance Types: Asset Finance, Refinancing, Business Loans
  • Industries: Manufacturing, Construction, Transportation

Pros

  • Competitive rates
  • Comprehensive service

Cons

  • Strict credit checks

Sources: Source

6. Aldermore Bank

Aldermore Bank delivers flexible business finance solutions designed to support UK SMEs' growth and adaptability. It typically suits companies needing moderate loan sizes with personalised service and options for varying repayment schedules. Their offerings include asset-backed and invoice finance with attentive support through the lending process.

Loan Details

  • Min Amount: £25,000
  • Max Amount: £500,000
  • Min APR: 3.9%
  • Max APR: 0%
  • Loan Duration: 1 to 5 years ⌛

Services & Industries

  • Finance Types: Business Loans, Asset Based Lending, Invoice Finance
  • Industries: Healthcare, Real Estate, SMEs

Pros

  • Personalized support
  • Flexible loan terms

Cons

  • Higher rates than some banks

Sources: Source

7. Growth Lending

Growth Lending provides substantial growth capital focused on UK SMEs involved in mergers, acquisitions, and R&D efforts. The provider suits businesses requiring larger loans with strategic support. They offer term loans with flexible repayment options to match evolving business growth needs.

Loan Details

  • Min Amount: £2,000,000
  • Max Amount: £10,000,000
  • Min APR: 5.5%
  • Max APR: 0%
  • Loan Duration: 1 to 5 years ⌛

Services & Industries

  • Finance Types: Term Loans, Growth Capital
  • Industries: R&D, M&A, Technology

Pros

  • Significant loan sizes
  • Strategic growth support

Cons

  • High minimum loan

Sources: Source

8. Kriya

Kriya focuses on providing B2B payment solutions alongside working capital and invoice finance products. It is suitable for UK businesses seeking efficient cash flow management with innovative digital tools. The company offers relatively fast loan disbursement and shorter-term financing options to meet diverse operational needs.

Loan Details

  • Min Amount: £10,000
  • Max Amount: £500,000
  • Min APR: 4%
  • Max APR: 0%
  • Loan Duration: 1 to 12 months ⌛

Services & Industries

  • Finance Types: Invoice Finance, Working Capital Loans
  • Industries: Technology, Wholesale, B2B Services

Pros

  • Fast disbursement
  • Innovative solutions

Cons

  • Shorter loan durations

Sources: Source

9. Time Finance

Time Finance offers secured loans and flexible funding catered to UK businesses with asset-backed lending needs. It is typically suitable for companies requiring tailored financing options combining security with business loan flexibility. The lender provides a broad product range supporting growth and operational requirements.

Loan Details

  • Min Amount: £50,000
  • Max Amount: £500,000
  • Min APR: 5%
  • Max APR: 0%
  • Loan Duration: 12 to 60 months ⌛

Services & Industries

  • Finance Types: Secured Business Loans, Asset Finance, Invoice Finance
  • Industries: Retail, Manufacturing, Services

Pros

  • Tailored solutions
  • Wide product range

Cons

  • Security required for loans

Sources: Source

10. Ultimate Finance

Ultimate Finance focuses on asset-based lending solutions with a significant UK presence and a large loan book. It is suited to UK SMEs requiring tailored finance that may include bridging and invoice finance options. The provider offers comprehensive product ranges with flexible lending arrangements for a variety of sectors.

Loan Details

  • Min Amount: £100,000
  • Max Amount: £4,000,000
  • Min APR: 4.5%
  • Max APR: 0%
  • Loan Duration: Up to 60 months ⌛

Services & Industries

  • Finance Types: Asset Based Lending, Invoice Finance, Bridging Loans
  • Industries: Construction, Property, SMEs

Pros

  • Experienced provider
  • Comprehensive product range

Cons

  • Higher minimum loan thresholds

Sources: Source

How to choose

Consider matching the lender's speciality to your specific needs as a public sector supplier seeking invoice finance. Prioritise providers offering flexible repayment terms and appropriate loan sizes to fit your cash flow cycles. Assess whether rapid access to funds or comprehensive brokered options is more beneficial for your operation. Review security and collateral requirements carefully, as invoice finance may require differing levels of security. Finally, compare costs, loan durations, and eligibility to ensure you select finance aligned with your business objectives and sector characteristics.

Conclusion

Choosing the right lender depends on your financing needs and business model. Traditional banks suit those seeking established relationships with broad product offerings and structured repayments. Brokers and specialist lenders often provide faster access and tailored invoice finance solutions but may have higher costs or limited loan types. Funding Agent is an option for SMEs looking for quick comparisons across multiple finance providers. Understanding your loan size, security preferences, and sector requirements will guide you to the most appropriate partner for loans in the range of ten thousand to several million pounds.

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FAQs

What is selective invoice finance?
How does invoice finance benefit public sector suppliers?
Are there any eligibility criteria for selective invoice finance?
How do I choose the best selective invoice finance lender?
Can all invoices be used for selective invoice finance?
Is selective invoice finance suitable for small and medium public sector suppliers?

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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
2Bibby Financial ServicesBibby Financial Services is a leading independent invoice finance specialist providing cash flow funding solutions for UK businesses for over 40 years.£10,000–£1,000,000; 3.5%–0% APR; 6 to 60 months
3Lloyds BankLloyds Bank provides business loans to help UK businesses expand or invest in equipment with flexible repayment terms.£1,000–£1,000,000; 2.9%–15% APR; 1 to 25 years
4Skipton Business FinanceSkipton Business Finance provides asset-based lending solutions helping UK SMEs unlock working capital through invoice finance and business loans.£0–£500,000; 4.5%–0% APR; 12 to 60 months
5Close BrothersClose Brothers provides a range of flexible funding options, including asset finance, to help UK SMEs purchase equipment or refinance assets.£5,000–£1,000,000; 4%–0% APR; Up to 60 months
6Aldermore BankAldermore Bank offers flexible business finance solutions helping businesses grow, adapt, and succeed with personalized support.£25,000–£500,000; 3.9%–0% APR; 1 to 5 years
7Growth LendingGrowth Lending provides growth capital ranging from £2m to £10m, supporting UK SMEs in M&A and R&D initiatives.£2,000,000–£10,000,000; 5.5%–0% APR; 1 to 5 years
8KriyaKriya provides B2B payments, credit, and working capital loans, helping businesses manage cash flow efficiently through invoice finance solutions.£10,000–£500,000; 4%–0% APR; 1 to 12 months
9Time FinanceTime Finance provides secured business loans and flexible funding solutions for UK businesses to support growth and operational needs.£50,000–£500,000; 5%–0% APR; 12 to 60 months
10Ultimate FinanceUltimate Finance offers asset-based lending and has a significant presence in the UK with a £400m loan book, providing businesses with tailored funding solutions.£100,000–£4,000,000; 4.5%–0% APR; Up to 60 months
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