Top 5 Invoice Finance Providers
With so many invoice finance choices, choosing a provider can quickly become an overwhelming process. That’s
Top 5 Invoice Finance Providers
With so many invoice finance choices, choosing a provider can quickly become an overwhelming process. That's where we come in...
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Top 5 Invoice Finance Providers
With so many invoice finance choices, choosing a provider can quickly become an overwhelming process. That's where we come in...
Looking to take advantage of invoice financing but don’t know where to start? We don’t blame you, there are over 120 different providers in the UK. And with so many choices, it can quickly become an overwhelming process that gets you nowhere.
To make things a bit easier for you, we’ve compared five of the UK’s leading invoice finance providers. Here you’ll learn about their core offerings, pros and cons, and how to choose the right provider for you!
What is Invoice Financing?
Invoice financing is a financial solution that allows businesses to convert outstanding invoices into immediate cash. This can be through factoring (selling invoices) or discounting (borrowing against them). It’s perfect for addressing liquidity issues, bridging revenue gaps, and sustaining business growth without taking on long-term debt.
You can access a percentage of your invoices’ total value (usually 80-95%), typically within 24 hours. Depending on your financing type, you will either be reimbursed the remaining amount or repay the borrowed amount. You will also have to cover the pre-agreed fee that your provider receives for their services.
What are the Benefits of Invoice Financing?
Immediate Access to Cash
Invoice financing releases funds tied up in unpaid invoices that can hit your bank account within just 24 hours. This quick access to cash lets you cover day-to-day operations, payroll, and supplier fees without waiting for your customers to pay. It is perfect for emergencies or time-sensitive operations.
Better Cash Flow Management and Forecasting
A healthy cash flow is essential, and invoice finance can help your business. A more predictable revenue stream allows you to budget accurately and gives a clearer forecasting picture to help with sustainable growth. If you’re a seasonal business, this can help bring stability in slower months.
Fund Growth Without Adding Debt
Unlike traditional loans, invoice finance doesn’t increase your debt. Instead, you advance money that you’re already owed. That means you can invest in hiring, equipment, marketing, or expansion without impacting your debt-to-income ratio. It’s a lower-risk way to fund strategic growth without interest or drawn-out repayments.
Flexibility and Scalability
With invoice finance, your funding levels increase in line with your sales. This means that as your business grows, so does your access to higher amounts and more favourable terms. Some providers also offer selective financing, letting you choose which invoices to fund without being tied into lengthy contracts.Â
The flexibility of invoice financing makes it suitable for businesses at any stage, from startups to larger corporations.Â
Time Savings and Reduced Admin Burden
If you choose the invoice factoring route, your provider will take over the responsibility for collecting the invoice amount. Now, your team has more time to focus on tasks that are actually making you money and not chasing up unpaid invoices.
You can also pass on the sometimes uncomfortable task of chasing down payments alongside reducing overall admin time.
Protects and Improves Customer Relationships
With invoice discounting, your customers remain unaware of your financing arrangement, keeping your reputation and relationships intact. Even with factoring, providers handle communications professionally, which can improve payment discipline.
Accessible Even with Limited or Poor Credit
Invoice financing is assessed on your customers’ creditworthiness, not yours. That means you can still qualify even if your business has a less-than-perfect credit score. If you’re a newer or recovering business, this can make all the difference when accessing cash.
Setup with Minimal Paperwork
Modern invoice finance platforms are built for speed. They offer digital onboarding, simple applications, and integration with tools like Xero, QuickBooks, or Sage. This reduces setup time, cuts paperwork, and provides an overall smoother experience.
Top 5 Invoice Finance Providers Compared: Our Verdict
Just before we kick things off, we need to let you know how we’re structuring this. It’s not a straight shootout to see who reigns supreme in the invoice financing world. It’s more of an overview of five different providers, what they can offer your business, and their pros and cons.Â
This will allow you to get a more objective picture of each provider, which we hope will inform your decision. With that out of the way, let’s crack on!Â
| Provider | Pros | Cons |
|---|---|---|
| Bibby Financial Services | - Speed (cash within 24 hours) - 24/7 Customer Support - Broad Industry Expertise - Flexible Repayment Terms - International Reach | - Documentation Requirements (lots of paperwork) |
| Kriya (Formerly MarketFinance) | - Speed (same-day quote, cash within 24 hrs) - Flexible Funding Options - Security (default risk protection) - Simple to Use - B2B Specialist | - Eligibility (min turnover £100,000) - Industry Limitations (not for B2C) |
| Close Brothers Invoice Finance | - Personalised Support - Transparent Pricing - Wide Industry Experience - Fast Application Process - Reputation (multiple awards) | - Not Suitable For Smaller Businesses (min turnover £500,000) - Stringent Documentation |
| Skipton Business Finance | - Small Business Solutions (LedgerLite) - Wide Range of Industries Served - Fast, Personal Application - Transparent Pricing | - Eligibility Requirements (min turnover £300,000) - Documentation and Due Diligence |
| Sonovate | - Fast, Digital Application - Flexible Funding Options - Transparent Pricing - Credit Risk Management | - Sector Focus (limited to recruitment, consultancies, contractors) - Ongoing Monitoring |
Bibby Financial Services
Provides 24/7 online customer service, quick payouts, and several finance options.
- Pros
- 24/7 Customer Support
- Broad Industry Expertise
- Flexible Repayment Terms
- Cons
- Documentation Requirements
Kicking things off, we have Bibby Financial Services, which has over 40 years of experience helping UK businesses with their invoice financing needs. Focusing on SMEs, they have a history of helping these enterprises take new orders, expand into new markets, and take the next step in their development. From professional services to construction, Bibby has done it all!
Other Core Offerings
- Invoice Finance: For increased flexibility and security, factoring and discounting options are available. The money is paid into your account within 24 hours.
- Construction Finance: With dedicated construction financing options, Bibby understands the unique demands of this industry. You can advance cash against both certified and uncertified applications for payment and invoices raised at project completion.
- Foreign Exchange: If you trade internationally, Bibby supports foreign payments. This includes immediate trading solutions or the ability to lock in exchange rates with future transactions.
- Asset Finance: Covers leasing, hire purchase, and refinancing solutions to release cash from existing assets.
- Marine Finance: A unique offering from Bibby. If you’re in the maritime industry, you can benefit from funding and expertise explicitly tailored towards your sector.
- Bad Debt Protection: If your customers don’t pay up, you can be covered with additional bad debt protection. Bibby allows you to choose how many customers you want to insure against, cover up to 90% of your bad debts, and handle all the paperwork.
Kriya
Offers factoring, discounting, and selective invoice financing, as well as allowing access to 90% of your total invoice value.
- Pros
- Flexible funding options
- Simple to use
- Cons
- Minimum turnover of £100,000 required
- Only for B2B businesses
Kriya (formerly MarketFinance) is a UK-based fintech company specialising in invoice finance and working capital solutions. Founded in 2011, Kriya is at the forefront of using technology to provide fast, flexible funding. It’s primarily known to help B2B businesses, focusing on a transparent, digital-first service.
Other Core Offerings
- Invoice Finance: Kriya offers factoring, discounting, and selective invoice financing. You can access up to 90% of the total invoice value and have the money in your account within 24 hours.
- Trade Credit / B2B Payments: Offer extended payment terms to your B2B customers. This can help with larger contracts and improve customer loyalty. With their Embedded PayLater products, Kriya assumes the credit risk, offering you a safety net against defaulted payments.
- Working Capital Loans: Short-term loans designed to cover operational expenses, inventory purchases, or growth initiatives. This additional option can work in conjunction with invoice finance.
- Authentication & Risk Assessment: Automated credit checks and fraud prevention tools help to ensure all transactions are secure and minimise risk exposure.
Close Brothers Invoice Finance
A well known provider with competitive and transparent pricing with no hidden fees.
- Pros
- Personalised Support
- Wide Industry Experience
- Fast Application Process
- Cons
- Not Suitable For Smaller Businesses
- Stringent Documentation
Close Brothers is the elder statesman of our list, coming in with a whopping 145-year history. It has provided lending, deposit taking, and securities trading to UK businesses for nearly a century and a half of operation. It’s known for a meticulous approach to funding and relationship building with their clients, who tend to be more established than newer ones.Â
Core Offerings
- Invoice Discounting: Release funds against your unpaid invoices while retaining control of collections and customer relationships.
- Invoice Factoring: Sell your unpaid invoices and receive a percentage of the invoice value. Close Brothers will then take on and manage credit control and collections.
- Asset-Based Lending: Unlock funding against a broader range of business assets, such as plant, machinery, property, and stock, in addition to invoices.
- Bad Debt Protection: An optional add-on that protects against customers going insolvent or defaulting on their payments.
- Liquidity Plus: Flexible revolving credit facility that provides additional working capital as and when you need it.
- Government Loan Schemes: Access government-backed business loan schemes as and when they become available.
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Skipton Business Finance
Dedicated account managers, access to government-backed loans, and personalised support.
- Pros
- Perfect for smaller businesses
- Fast, personal application
- Transparent pricing
- Cons
- Minimum turnover of £300,000 required
- Lengthy application process
Skipton Business Finance (SBF) is a specialist invoice finance provider in the Skipton Building Society Group. Based, unsurprisingly, in Skipton, they’ve provided UK SMEs with tailored funding solutions for over 20 years. Over these two decades, they’ve emphasised speed, flexibility, and a personalised service to help clients reach their goals.Â
Core Offerings
- Invoice Factoring: Sell your unpaid invoices to SBF and receive up to 90% of their total value almost immediately. They take on credit control and collections so you can reduce your admin time, improve cash flow, and not worry about chasing up unpaid invoices.
- Invoice Discounting: Access up to 90% of your invoice value while retaining complete control over collections and customer relationships. This process remains confidential, so your customers won’t be aware of Skipton’s involvement.
- LedgerLite: This is a simplified invoice finance solution that releases up to 50% of the total invoice value. It’s primarily designed for SMEs with smaller needs who want to gain access to fast and flexible funding.
Sonovate
Tailored funding for recruitment agencies and consultancies with access to an integrated platform and flexible funding solutions.
- Pros
- Flexible funding options
- Transparent pricing
- Credit risk management
- Cons
- Niche sector specialisation
- Ongoing monitoring
Rounding off our list is Sonovate, a UK-based fintech platform founded in 2012. It specialises in invoice finance and other funding solutions for recruitment agencies, consultancies, and businesses that place contractors or freelancers. It combines fast, flexible funding with smart technology to automate back-office processes and reduce risk for start-ups and large enterprises. However, you may need to maintain up-to-date records and compliance for continued access to funding, which can be tedious and time-consuming.
Core Offerings
Invoice Finance: Advance up to 100% of your invoice’s total value. Sonovate’s dedicated platform automates most of this process, reducing admin time and the risk of human error.Â
Recruitment Finance: Tailored funding for recruitment agencies and consultancies placing contractors, temps, or permanent staff. This also includes essential features like payroll funding, timesheet management, and compliance support.
Back-Office Technology: Sonovate’s integrated platform automates invoicing, timesheet management, compliance, and reporting to help agencies save time and scale efficiently.
Embedded Finance: Flexible funding solutions that can be integrated directly into your other platforms or business workflows.
How to Choose the Best Provider for Your Business
Accreditation and Credibility
Always choose a provider endorsed by an industry-recognised body, such as UK Finance. Look for ones accredited under the Invoice Finance and Asset-Based Lending (IFABL) Standards Framework. This demonstrates their commitment to a transparent and ethical lending process and keeps you safe against unreliable or predatory lenders.
Experience in Your Industry
Opting for a provider with direct experience in your industry can help them understand your business model, seasonal trends, and payment structures. This insight allows them to tailor their approach, risk assessments, and terms to meet your specific needs. Often, this will translate into a smoother, faster process with better fees.
Technology and Software Integration
If you already use accounting software like Xero, QuickBooks, or NetSuite, find a provider that can directly integrate with them. Syncing your invoices, automatic payment tracking, and real-time dashboards make managing your cash flow faster and easier, and minimise the risk of error.Â
Customer Support and Account Management
Responsive support is crucial, especially when something goes wrong or needs urgent attention. Find a provider that offers dedicated account managers, as you’ll benefit from a more tailored service.Â
Check online reviews and ratings on Trustpilot or Google to gauge what real people are saying about their reliability, transparency, and overall satisfaction.
Contract Terms and Transparency
Never sign anything without first understanding the key contract terms. Confirm who handles the collections and who is liable if your customer defaults on their invoice. Go through with a fine-tooth comb to review all fees, notice periods, and obligations to avoid hidden costs and nasty surprises down the road.Â
Regulatory Status and Trust Signals
While invoice finance isn’t directly regulated by the Financial Conduct Authority (FCA), many reputable providers are FCA-regulated for other financial products. This can be a great indicator of whether you should trust them or not. If in doubt, ask them about their adherence to the IFABL Standards Framework.
How Can I Get Invoice Financing For My Business?
And there you have it, the top 5 invoice finance providers compared. Hopefully, that’s cleared up a few things for you, but now there’s one final question we have to answer. How can you take advantage of invoice financing for your business?Â
Well, you’re in luck, because here at Commercial Experts, we’ve made it simple for businesses like yours to compare quotes in no time.
All you have to do is tap box below and answer a few simple questions about your business. Then, based on your responses, you’ll receive a range of invoice finance quotes tailored to your specific needs from some of the UK’s leading providers.Â
All quotes are 100% free and non-committal, so what are you waiting for? Tap the button below and get comparing now!Â
FAQs
What are the key differences between leading invoice finance providers?
Top providers differ in eligibility, industry focus, funding speed, and tech integration. For example, Bibby suits construction and marine sectors, while Kriya targets B2B. Turnover thresholds, setup times, and contract flexibility also vary, so it’s important to match the provider to your business needs.
How does accounting software integration benefit invoice finance users?
Software integration with platforms like Xero or QuickBooks reduces manual input, syncs invoices automatically, and offers real-time cash flow visibility. It streamlines the funding process, cuts admin time, and minimises errors. This is especially useful for small teams needing simple, fast access to working capital.
Why might invoice finance be better than a traditional loan?
Invoice finance provides upfront access to cash you’ve already earned, without adding new debt. It scales with your sales and doesn’t require lengthy approval like a loan. This makes it ideal for growth, covering costs, or smoothing cash flow during long customer payment cycles.
What should I look out for before choosing a provider?
Check the minimum turnover, contract length, and if the service is recourse or non-recourse. Confirm all fees upfront. Look for FCA-regulated businesses or those following IFABL guidelines. Always review customer support quality and read independent reviews before committing.
How can I get matched with the right invoice finance provider?
Tap the ‘Start Free Quote’ button on this page and answer a few quick questions about your business. You’ll then receive a range of tailored, no-obligation quotes from only the UK’s most trusted providers. It’s 100% free, fast, and makes comparing your best options easier than ever, without any pressure to commit.
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