Top 10 Invoice Finance Lenders in the UK
The UK invoice finance sector remains a cornerstone of SME funding. As of late 2024, around 35,000 businesses benefit from invoice finance or asset-based lending, with total outstanding advances topping £20 billion; equating to approximately £120 billion in annual funding support.
Invoice financing helps businesses unlock immediate cash from outstanding invoices, offering up to 80–95% advance rates. Unlike traditional loans, it relies on debtor strength rather than fixed assets. The market is growing: Q2 2024 saw a 13% increase in advances year-over-year to about £21.8 billion. UK Finance data shows that invoice finance clients’ combined turnover exceeded £316 billion in 2023.
Top 10 Invoice Finance Lenders
- Ultimate Finance – Offers up to 95% advance on invoice value.
- Close Brothers Commercial Finance – Provides 80–90% advance rates.
- Bibby Financial Services – Typically advances 80–90% of invoice value.
- Aldermore Bank – Offers 80–90% advance on eligible invoices.
- Hitachi Capital Business Finance – Provides up to 95% funding.
- Skipton Business Finance – Advances usually range from 80–90%.
- Novuna Business Finance – Offers up to 95% on qualifying invoices.
- Sallyport Commercial Finance – Advance rates up to 90% available.
- HSBC UK Invoice Finance – Typically funds 80–90% of invoice value.
- Santander Corporate & Commercial – Offers 80–90% advance options.
Invoice finance encompasses several products:
- Invoice factoring – selling invoices, with the provider managing collections.
- Invoice discounting – confidential borrowing against invoices; you manage collections.
- Asset-based lending (ABL) – invoice finance combined with lending against other assets like equipment.
These solutions are essential for SMEs facing 30–60 day payment delays; helping to maintain payroll, purchase inventory, and scale services without equity dilution.
Our Top 10 UK Invoice Finance Providers (2025)
1. Ultimate Finance
Ultimate Finance is a UK-based specialist lender with over 20 years of experience helping SMEs release cash tied up in unpaid invoices. Their invoice finance offering is popular due to fast funding, up to 95% advance within 24 hours and strong support through relationship management and optional debtor protection.
- Ownership & background: Independent, well-capitalized.
- Services: Offers invoice discounting, factoring, and full ABL.
- Advance rates: Up to 95%.
- Debtor protection: Available via credit insurance.
- Target sectors: Manufacturing, distribution, professional services.
- Online portal: Real-time dashboards and funding request tools.
- Fees & speed: Competitive service fees; funds often released within 24 hrs.
- Case study: Manufacturer scaled output by funding seasonal invoices.
2. Close Brothers Commercial Finance
Part of the FTSE‑250 listed Close Brothers Group established in 1878, Close Brothers Commercial Finance combines strong financial pedigree with tailored invoice finance solutions. They serve a range of sectors including manufacturing and recruitment, offering both factoring and discounting via regional experts.
- Heritage: Deep-rooted stability and trust in UK finance.
- Services: Invoice finance, asset finance, development finance.
- Coverage: UK-wide with regional offices; minimum facility ~£500k.
- Approach: Industry-specialist relationship managers.
- Case study: Hay supply business strengthened working capital to meet a large retail contract.
3. Bibby Financial Services
Bibby Financial Services is one of the UK’s largest independent invoice finance providers, with a global reach across nine countries. They specialize in factoring and discounting solutions tailored to sectors such as recruitment and manufacturing, and are known for their robust bad‑debt protection services and digital platform.
- Presence: Strong UK and international client base.
- Services: Factoring, discounting, credit management, bad debt protection.
- Sectors: Recruiters, manufacturers, wholesalers.
- Portal: Digital invoicing, debtor tracking, reporting.
- Fee structure: Transparent service and discount fees.
- Case study: Recruitment firm safeguarded cash flow during rapid growth and customer late-payments.
4. Aldermore Bank
Aldermore is a FTSE‑250, banking‑licensed institution (part of FirstRand) offering integrated invoice finance with asset-based lending and broader banking services. Tailored for established SMEs, they enhance funding with credit facilities, deposit accounts, and sector-specific expertise in healthcare and professional services.
- Bank licence: Full bank services for SMEs.
- Services: Invoice finance, asset & commercial mortgages.
- Target: SMEs and established corporates.
- Sector focus: Healthcare, specialist services.
- Case study: Healthcare provider funded outstanding invoices while securing a deposit account.
5. Hitachi Capital Business Finance
Backed by the global Hitachi group, this lender merges invoice finance with equipment and vehicle asset funding. They focus on sectors such as technology, healthcare, and construction, offering structured working capital packages that align finance with asset investments.
- Group strength: Global Hitachi network.
- Services: Invoice finance, asset & equipment funding.
- Sectors: Tech, healthcare, construction.
- Deal size: £250k–£2m+.
- Case study: Tech leasing firm combined asset and invoice funding in one package.
6. Skipton Business Finance
A subsidiary of Skipton Building Society, Skipton Business Finance takes a community-driven approach, offering interest-free factoring and no setup fees. They serve newer SMEs and start-ups across the UK with straightforward, startup-friendly funding solutions.
- USP: Unique interest-free factoring; no setup fees.
- Support: Works with startups and young businesses.
- Application: Streamlined, simple, supportive.
- Case study: Start‑up service provider paired growth with transparent, cost-effective funding.
7. Novuna Business Finance
Owned by Mitsubishi HC Capital, Novuna blends asset-based and invoice financing through a modern digital portal. Their comprehensive solutions, including credit insurance options, are designed for sectors like construction and professional services.
- Ownership: Backed by Mitsubishi HC Capital.
- Technology: Digital-first interface and platform.
- Sectors: Construction, professional services.
- Case study: Construction supplier sustained inventory financing while using new machinery.
8. Sallyport Commercial Finance
An independent, growth-oriented lender based in Glasgow, Sallyport targets UK-wide SMEs in sectors like haulage, recruitment, and healthcare. Known for flexible terms; including up to 90-day invoice financing, they aim to support dynamic, regional business needs.
- Flexibility: Entrepreneurial, tailored deals.
- Sectors: Haulage, recruitment, healthcare.
- Terms: Flexible 90-day terms.
- Case study: NI-based haulage firm financed seasonal contracts while expanding routes.
9. HSBC UK Invoice Finance
HSBC delivers invoice finance within a full-service banking ecosystem, offering seamless integration with international trade, FX solutions, and business banking platforms. They cater to larger SMEs and exporters, with significant financial capacity for complex funding demands.
- Banking integration: FX, trade, and corporate services.
- Capacity: Large credit lines, global scale.
- Case study: Exporter managed cash flow from delayed overseas invoices using integrated solution.
10. Santander Corporate & Commercial Banking
Santander combines invoice finance and asset-based lending with global banking infrastructure. Their specialist teams serve mid-market businesses seeking working capital support across Europe and internationally, all within a cohesive digital banking environment.
- International presence: Deep European integration.
- Target: Mid-market, growth-stage SMEs.
- Case study: Tech firm expanded into EU using combined domestic & international funding lines.
Conclusion
Invoice finance continues to be a vital tool for UK SMEs to unlock working capital, manage cash flow gaps, and scale with confidence. With a diverse range of providers offering tailored solutions; from startup-friendly factoring to integrated asset-based lending, it’s crucial to align your business needs with the right lender.
Whether you're looking for high advance rates, bad debt protection, or rapid funding, the top 10 invoice finance companies listed here each bring unique strengths to the table. Evaluate your sector, funding urgency, and technology preferences, and don’t hesitate to speak with multiple providers or brokers to ensure the best fit.
FAQs
What is invoice finance and how does it work?
Invoice finance allows businesses to unlock cash tied up in unpaid invoices. A lender advances a percentage (usually 80–90%) of the invoice value, with the balance paid once the customer settles the invoice.
How do I choose the best invoice finance provider?
Consider factors such as advance rates, fees, customer service, contract terms, industry experience, and whether they offer invoice factoring or invoice discounting.
What are the costs associated with invoice finance?
Costs typically include a service fee (1–5%) and discount rate (similar to interest, often 1–3% monthly). Exact pricing varies by provider and turnover.
Can small businesses qualify for invoice finance?
Yes. Many lenders accept startups and small businesses as long as they invoice other businesses (B2B) and have verifiable trading history or ongoing contracts.
Is invoice finance confidential?
Some providers offer confidential invoice discounting, meaning your customers won’t know you're using invoice finance. Others (like factoring) may involve the lender contacting your clients.
What are the risks of invoice finance?
Risks include over-reliance on a single debtor, potential customer relationships impacted by third-party contact, and costs adding up if invoices are unpaid for long periods.
How fast can I get funded through invoice finance?
Funding can be as quick as 24–48 hours after setup. For new accounts, setup may take 5–10 days including onboarding and verification.
