Invoice finance has become one of the most important cash flow tools available to UK businesses – particularly for SMEs waiting on slow-paying clients while still needing to cover wages, stock, and supplier costs. With the right provider, you can unlock up to 90% of an invoice’s value within 24 hours, without taking on traditional debt.
But the market is crowded. Providers vary significantly in fee structure, advance rates, contract flexibility, and the industries they serve. This guide profiles five established invoice finance providers in the UK for 2026, covering what each offers, who they’re likely to suit, and what to look out for before you sign.
What Is Invoice Finance?
Invoice finance is a type of asset-based lending that allows businesses to borrow against outstanding invoices. Rather than waiting 30, 60, or even 90 days for a customer to pay, you receive an advance – typically 70–90% of the invoice value – from a lender, who then collects the payment from your customer (or passes collection back to you, depending on the arrangement).
There are two main types:
- Invoice factoring – the lender manages your sales ledger and collects payments directly from your customers. Typically suits businesses that want to outsource credit control.
- Invoice discounting – you retain control of your sales ledger and continue collecting from customers yourself. The facility remains confidential, and it tends to suit larger, more established businesses with an in-house credit control function.
There are also selective (or spot) options – where you finance individual invoices rather than your full ledger – which suit businesses with irregular cash flow needs.
Below are five invoice finance providers operating in the UK market, covering a range of business sizes, sectors, and facility types.
1. Novuna Business Cash Flow
Novuna Business Cash Flow
has established itself as an invoice finance provider UK businesses have come to rely on, and appears first on this list given the breadth of its product offering.
Novuna Business Cash Flow is a trading style of Mitsubishi HC Capital UK PLC, itself a subsidiary of Mitsubishi HC Capital Inc. – one of the world’s largest and most diversified financial groups – which gives it significant financial backing. For UK SMEs, lender stability is worth factoring into the decision: you want confidence that your provider will be there in 12 months’ time, not just today.
What Novuna Offers
Novuna provides a full suite of invoice finance solutions, including invoice factoring, invoice discounting, selective invoice finance, and asset-based lending (ABL). Their offering extends to specialist facilities for:
- Recruitment and staffing agencies – with PAYE processing support
- Construction firms – including contra charge arrangements
- Logistics and haulage businesses
- Wholesale and distribution companies
Advance rates are competitive, typically up to 90% of eligible invoice value, and funding can be available within 24 hours once a facility is established.
Novuna’s service model is relationship-led rather than platform-only. Rather than routing clients through a call centre, Novuna assigns a dedicated relationship manager – someone who understands your sector and your ledger, and who you can contact directly when speed matters.
Pricing
Novuna’s pricing is structured around a service charge (as a percentage of turnover) plus a discount charge (interest on the funds you draw down). Exact rates depend on turnover, sector, and the structure of your ledger – and as with any provider, it’s worth asking for a full illustration of all charges before proceeding.
Best For
- UK businesses with turnover from £500k upward
- Businesses in staffing, logistics, construction, and manufacturing
- Companies that want a single funder for multiple working capital facilities (invoice finance + asset finance combined)
- Businesses that want a relationship-led approach rather than a platform-only product
Who This May Suit
Novuna’s combination of financial backing, sector coverage, and relationship-led service model makes them worth considering for businesses that want more than a transactional facility. If those factors matter to your business, they’re a reasonable starting point for conversations.
2. Bibby Financial Services
Bibby Financial Services is one of the largest independent invoice finance providers in the UK, with over 40 years of experience in the market and a broad sector footprint spanning transport and haulage, manufacturing, construction, and recruitment.
They offer invoice factoring and invoice discounting, with advance rates of up to 85% of eligible invoice value. Their standard factoring and discounting facilities suit businesses of varying sizes and turnover levels, with contract flexibility available – businesses can choose between fixed-term agreements or a rolling 30-day notice arrangement depending on the product and circumstances.
What Bibby Offers
- Invoice factoring and invoice discounting
- Advance rates of up to 85% of eligible invoice value
- Contract flexibility – fixed-term agreements or rolling 30-day notice arrangement available
- Broad sector footprint spanning transport and haulage, manufacturing, construction, and recruitment
- Over 40 years of experience as one of the UK’s largest independent invoice finance providers
Best For
UK businesses across a range of sizes and sectors looking for an established independent provider with specialist knowledge in transport, manufacturing, construction, and recruitment.
3. Ultimate Finance
Ultimate Finance has been providing invoice finance to UK businesses since 2002 and positions itself as a relationship-driven lender for growing and mid-market SMEs. Their invoice finance facilities run from £100,000 up to £10 million, with advance rates of up to 95% of invoice value.
They offer both invoice factoring and invoice discounting, and have built a reputation for practical credit assessment and strong client service – including dedicated relationship managers and a 24/7 online portal. They are particularly active in construction, recruitment, and professional services, and have won multiple industry awards including Invoice Finance Lender of the Year at the SME Funding Awards.
Eligibility typically requires a trading history of at least six months and an annual turnover in the region of £500,000, though this can vary depending on the facility and business circumstances. Eligibility criteria should be confirmed directly with Ultimate Finance.
What Ultimate Finance Offers
- Invoice factoring and invoice discounting
- Facilities from £100,000 up to £10 million
- Advance rates of up to 95% of invoice value
- Dedicated relationship managers and 24/7 online portal
- Active in construction, recruitment, and professional services
- Winner of Invoice Finance Lender of the Year at the SME Funding Awards
Best For
Established UK SMEs looking for a relationship-led provider with competitive advance rates and a track record in construction, recruitment, and professional services.
4. Skipton Business Finance
Skipton Business Finance is part of the Skipton Building Society Group and has been providing invoice finance for close to 25 years. Unlike many providers, they work with businesses at a range of stages – from start-ups through to established companies – and are known for taking a more flexible approach to underwriting than traditional banks.
They offer invoice factoring, confidential invoice discounting, and two differentiated products: Skipton Select, an interest-free factoring solution where clients pay a single service charge based on turnover rather than a daily discount rate; and LedgerLite, a lighter-touch facility designed for businesses not yet ready for a full factoring arrangement. Advance rates go up to 90% on standard facilities.
Sectors they are active in include manufacturing, recruitment, and transport and logistics.
What Skipton Offers
- Invoice factoring and confidential invoice discounting
- Advance rates of up to 90% on standard facilities
- Skipton Select – interest-free factoring with a single service charge based on turnover
- LedgerLite – a lighter-touch facility for businesses not yet ready for a full factoring arrangement
- Flexible approach to underwriting – accessible to start-ups and newer businesses
- Active in manufacturing, recruitment, and transport and logistics
- Close to 25 years of invoice finance experience
Best For
Businesses at various stages of growth, including start-ups and newer businesses that may find it harder to access facilities elsewhere, as well as more established SMEs looking for predictable fee structures.
5. Satago
Satago is a tech-first invoice finance platform that integrates directly with your accounting software – including Sage, Xero, QuickBooks, and over 300 other platforms – and allows businesses to finance invoices selectively or across the full ledger, with both options available in a single interchangeable facility.
Their selective invoice finance product has no long-term contract and no minimum volume commitment: you fund the invoices you choose, when you need to. Their full invoice finance product connects to your accounting software in real time, automatically displaying eligible invoices and updating your facility limit without the need for manual reconciliation.
To be eligible, businesses need a minimum annual turnover of £100,000 and at least six months of trading history (eligibility criteria should be confirmed directly with Satago). Satago also offers credit control tools and risk insights as part of its platform, available via paid subscription plans.
The trade-off compared with full-service providers is the absence of a hands-on relationship management layer – Satago is designed to be largely self-service. Businesses with complex ledgers, specialist sector requirements (such as construction retentions or recruitment PAYE), or a preference for dedicated account management may find a more traditional provider better suited to their needs.
What Satago Offers
- Selective invoice finance and full ledger invoice finance – both available in a single interchangeable facility
- No long-term contract and no minimum volume commitment on the selective product
- Real-time integration with Sage, Xero, QuickBooks, and over 300 other accounting platforms
- Automatic updating of facility limit without manual reconciliation
- Credit control tools and risk insights available via paid subscription plans
- Minimum turnover of £100,000 and at least six months of trading history required (eligibility criteria should be confirmed directly with Satago)
Best For
UK businesses with at least £100,000 turnover looking for a flexible, digital-first invoice finance solution without long-term contract commitments.
Invoice Finance Fees Explained
Understanding what you’ll actually pay is essential before committing to a facility. Here’s a plain-English breakdown of the main charges:
Service charge (management fee): a percentage of your total turnover put through the facility, covering administration, credit checking, and (in factoring) collections. Rates vary by provider, turnover, and the complexity of your ledger – always request a full illustration rather than relying on headline figures.
Discount charge: interest on the funds you draw down, charged daily. Typically quoted as a margin above base rate. This is the equivalent of the interest rate on a loan. The rate you are offered will depend on your business profile, sector, and the provider’s assessment of your ledger.
Additional charges to watch for:
- Minimum usage fees – if your drawing is below a certain level in a given period
- Survey fees – for an initial review of your ledger
- Exit fees – charged if you terminate before the end of a minimum contract term
Always ask for an all-in illustration rather than comparing headline rates alone.
Frequently Asked Questions
How quickly can I access funds through invoice finance? Once a facility is established, most providers can advance funds within 24 hours of an approved invoice being submitted. Setup timescales vary by provider and the complexity of your business, so it is worth asking each lender for an indication upfront.
Will my customers know I’m using invoice finance? Only with invoice factoring. Invoice discounting is confidential – your customers make payments to you as normal, and the finance arrangement remains private.
Is invoice finance regulated in the UK? Invoice finance is not directly regulated by the FCA in the same way as consumer credit products, but most reputable providers are members of UK Finance and adhere to the Invoice Finance and Asset Based Lending industry code.
What turnover do I need to qualify? This varies by provider. Some work with businesses from as little as £100k turnover. Most full-service providers require at least £250k–£500k.
Can I use invoice finance alongside other lending? Yes – many businesses use invoice finance alongside asset finance, commercial mortgages, or term loans. Some providers (like Novuna) can provide combined facilities under a single relationship.
Final Thoughts
The right invoice finance provider will depend on your turnover, sector, and how much control you want to retain over your customer relationships. The providers in this guide each have different strengths – and the best fit will vary depending on your circumstances.
Whatever you choose, it’s worth getting quotes from at least two or three providers and comparing all-in costs – not just the headline service charge.
