Best Invoice Finance Providers in the UK Compared

The best invoice finance provider for your business depends on your turnover, your customers and whether you want confidentiality, so there is no single winner. Well known UK providers include Bibby Financial Services, Kriya, Close Brothers, Aldermore and Skipton Business Finance, and the right fit turns on facility type, contract terms and how quickly you need cash against unpaid invoices.

This guide explains what invoice finance is, how the main providers differ and the practical questions to ask before you sign. Greenwood Capital is a Manchester-based, whole-of-market finance broker. We are not a lender and this page is educational only, not financial advice.

What is invoice finance?

Invoice finance is a way to release cash tied up in unpaid customer invoices, usually receiving a large percentage of an invoice value within 24 to 48 hours of raising it rather than waiting 30, 60 or 90 days for payment. The provider advances funds against your sales ledger and you repay when your customer settles.

It is a form of working capital funding secured against your receivables rather than property. There are several main types.

• Invoice factoring is where the provider advances funds and also manages your sales ledger and credit control, chasing payment on your behalf. Your customers usually know a third party is involved.
• Invoice discounting is where you receive an advance but keep control of your own credit control. Confidential invoice discounting (CID) means your customers are not told a provider is involved.
• Selective or spot factoring is where you finance a single invoice or chosen customers rather than the whole ledger, giving flexibility without a full facility.
• Asset based lending (ABL) combines invoice finance with funding against stock, plant, machinery or property for larger, more complex requirements.

Facilities are typically priced with two elements: a service or facility fee and a discount charge on the funds you draw. Costs vary by turnover, sector, customer quality and facility type, so always confirm current terms with the provider.

How we chose these providers

We selected providers that are active in the UK invoice finance market, cover a range of business sizes and offer genuinely different strengths, so the shortlist reflects real choice rather than one profile. As a whole-of-market broker we do not favour any single lender, and we are paid to find suitable fits across the market, not to push a product.

We looked at facility types offered (factoring, discounting, selective and ABL), typical turnover appetite, confidentiality options, sector focus and the practical watch-outs businesses raise, such as minimum terms and concentration limits. We have not invented rates. Pricing moves with your profile and the wider market, so treat cost comments as directional and confirm figures directly.

The best invoice finance providers in the UK

Bibby Financial Services: best for established SMEs and sector specialism

Bibby Financial Services is one of the largest independent invoice finance providers in the UK and supports thousands of businesses across sectors including recruitment, manufacturing, wholesale, transport and construction. It offers factoring, confidential invoice discounting, selective invoice finance and asset based lending, so it can flex as a business grows.

Bibby tends to suit established small and medium businesses that want a specialist relationship and sector knowledge, including firms with more complex ledgers. Watch-outs are the usual ones for full facilities: check the minimum contract term, notice period and any service fees against the flexibility you actually need, and confirm how construction or contractual debt is treated if that applies to you.

Kriya: best for fast, digital, tech-led funding

Kriya (formerly MarketFinance) is a technology-led provider offering flexible invoice finance and business finance through a largely digital process, which can mean quick onboarding and funding decisions. It appeals to businesses that value online account management and selective funding rather than a traditional relationship model.

Kriya can suit growing SMEs, B2B businesses and those with strong debtors who want speed and self-service. As with any digital provider, check the eligibility criteria for your turnover and sector, understand how selective versus whole-ledger pricing works and confirm current fees, because the convenience of a fast facility should still be weighed on total cost.

Close Brothers Invoice Finance: best for a bank-backed relationship

Close Brothers Invoice Finance is part of Close Brothers, a long established UK merchant banking group, and offers factoring, invoice discounting and asset based lending with a relationship-led approach. It tends to appeal to businesses that want the reassurance of an established banking group alongside a dedicated point of contact.

It can suit SMEs and larger businesses seeking stability and a broader banking relationship, including those exploring ABL. Watch-outs are to confirm turnover appetite for your size, the contract term and how the facility scales, and to compare the relationship benefits against more flexible digital options if speed and low commitment matter more to you.

Aldermore: best for growing businesses wanting choice of facility

Aldermore is a specialist UK bank offering invoice finance including factoring and confidential invoice discounting, alongside wider business lending such as asset finance. This breadth can help a business that expects its funding needs to broaden beyond receivables alone.

Aldermore can suit growing SMEs that want a bank relationship with a range of products under one roof. As always, check minimum turnover requirements, the notice period and how advance rates apply to your customer base, and compare against independents if you want a more specialist or flexible arrangement.

Skipton Business Finance: best for smaller businesses and start-ups

Skipton Business Finance, part of the Skipton Building Society group, provides factoring and confidential invoice discounting with a reputation for supporting smaller businesses and start-ups. It often considers newer companies that larger providers might view as too early stage.

It can suit small firms, recruitment agencies and start-ups that need working capital but lack a long trading history. Watch-outs include confirming the minimum facility size that makes sense for a small ledger, understanding the service fee for a fully managed factoring arrangement and checking any personal guarantee expectations.

Nucleus Commercial Finance: best for flexible, blended facilities

Nucleus Commercial Finance offers invoice finance alongside other business lending and can structure blended or flexible facilities for SMEs. It appeals to businesses that want a solution combining receivables funding with wider working capital.

It can suit SMEs with a mix of needs who value flexibility over a single rigid product. Confirm current eligibility, how selective options are priced and the total cost across any blended arrangement, since combining products can complicate a like-for-like comparison.

Invoice finance providers compared

This table is a general summary. Facility availability, criteria and pricing change, so confirm current details with each provider before deciding.

A worked scenario: how a business might weigh two options

Imagine a recruitment agency with a turnover of £1.2m, several large clients and a small back office team that struggles to chase payment. Cash is tight because contractors are paid weekly but clients pay in 45 to 60 days.

Comparing Bibby and Kriya, the agency weighs two different strengths. Bibby’s factoring could hand credit control to a specialist team that understands recruitment, freeing the owner from chasing and providing a managed ledger, which suits a business short on admin capacity. The trade-off is a service fee for that management and, potentially, a minimum term.

Kriya could appeal if the agency prefers to keep credit control in-house, wants a fast digital facility and likes the idea of financing selectively when cash is tightest. The trade-off is that the business keeps doing its own chasing, so the owner would compare the time saved by outsourcing against the cost and flexibility of each option.

There is no universally correct answer. The decision turns on whether the agency values a managed service and sector knowledge more than speed, self-service and flexibility, and on the total cost each provider quotes for its actual ledger.

How to choose invoice finance for your situation

Choosing a provider comes down to matching facility type, cost and commitment to how your business actually trades. Ask yourself the following key questions before you compare quotes.

• Do you want to keep credit control? If yes, look at invoice discounting or CID. If you want the provider to chase payment, factoring may fit better.
• Do you need confidentiality? Confidential facilities keep your customers unaware a provider is involved, which some businesses prefer.
• Whole ledger or selective? Financing every invoice can maximise cash but usually means a longer commitment. Selective funding gives flexibility for occasional gaps.
• How concentrated are your customers? If one client makes up most of your sales, providers may apply concentration limits that reduce your advance.
• What is your growth plan? A provider offering asset based lending or wider products can scale with you as needs grow.

What to check before you commit

Before signing an invoice finance agreement, read the contract carefully and confirm the full cost and exit terms, because headline advance rates rarely tell the whole story. The following points cause the most surprises.

• Advance rate: the percentage of each invoice you receive upfront, often in the region of 80 to 90 percent, with the balance released when your customer pays.
• Fees: the service or facility fee and the discount charge on drawn funds. Ask for an all-in cost illustration for your ledger and confirm current figures.
• Minimum term and notice period: many facilities run for 12 months or more with a notice period to exit, so check how you leave and any early termination cost.
• Minimum fees: some agreements include minimum monthly or annual charges regardless of usage.
• Recourse: most facilities are recourse, meaning you carry the risk if a customer does not pay. Non-recourse or bad debt protection may be available for an added cost.
• Personal guarantees: understand what security or guarantees are required, particularly for smaller businesses.
• Concentration and eligible debt: check how much of your ledger actually qualifies for funding.

Let Greenwood Capital compare the market for you

Invoice finance providers differ in facility type, cost, commitment and appetite for your sector and size, which makes comparing on a like-for-like basis genuinely difficult. As a whole-of-market broker based in Manchester, Greenwood Capital can review the market and help match your situation to providers that fit how your business trades.

This page is general information, not financial advice or a recommendation. If you would like impartial help comparing options across the market, get in touch with Greenwood Capital and we will do the legwork for you.