The Top 9 Invoice Financing Companies in the UK 2025

For businesses that require a quick cash injection, invoice financing is a long-standing method for getting access to funds before customers pay an invoice.

According to our research, Kriya is the top invoice financing company in the UK for 2025. Its straightforward, user-friendly approach, coupled with its solid customer support, is what sets it apart from the competition.

It’s not the only player on the market, and if you don’t meet Kriya’s eligibility requirements, you might meet the requirements of one of the eight other providers that made our list.

Read on to find out more in our deep-dive, or use our free quotes tool to receive obligation-free invoice financing quotes that are tailored to the needs of your business.

Using the information provided, such as your business’s annual turnover, industry, and how long you’ve been trading for, you’ll be paired with one or more of the UK’s leading invoice finance suppliers. They will then be in touch with quotes and advice that is completely tailored to your business.

What Is an Invoice Financing Company?

Invoice financing allows a business to use its invoices as collateral to borrow money from an invoice financing company.

Essentially, you can sell your unpaid invoices to a third party (the invoice financing company), who’ll typically give you 90% of the value of the invoice, either instantly or within 24 hours. You pay this back to the invoice financing company when your debtors eventually pay their invoice.

An invoice financing company will offer two types of service:

• Invoice financing means a business maintains full control over its sales ledger, still issuing and collecting payment. It sends its unpaid invoices on to the invoice financing company who pay out 90% of the invoice value, less the agreed service fee.
• Invoice factoring involves the invoice financing company taking control over a business’s whole sales ledger and taking care of collection of the unpaid invoices. Similarly, it will pay out 90% of the invoice’s value, usually within 24 hours.

However, bear in mind that service fees and costs can add up over time, and a lot of financing companies require a high turnover and excellent credit rating from a business. Most invoice financing companies also only service the B2B sector.

To give you a better understanding of how invoice financing works, we’ve created an easy-to-follow graphic to illustrate the process:

The Best Invoice Financing Companies: Overview

Here’s a quick overview of the best UK invoice financing companies:

1. Kriya

Best for its straightforward, user-friendly approach

Kriya’s pricing at a glance:

• Advance rate: Up to 90%
• Discount fee: Custom
• Service fee: Custom (around 2%)

What we like about Kriya

Kriya offers selective invoice finance, which is a solution that allows you to receive funding on just one invoice rather than your whole ledger. Entirely confidential invoice discounting is also available, though the eligibility criteria is stringent, typically requiring businesses to have a higher turnover.

Unlike many of the other invoice finance providers on this list, Kriya doesn’t offer invoice factoring, just discounting. It does offer confidential credit control as an add-on, but this is provided by a third-party company, Veritas Commercial Services. Utilising this add-on increases your fees, but loosens the prerequisites in terms of your turnover and trading history.

Bad debt protection (credit insurance) is also available as an add-on for an extra cost and is supplied by another third-party provider, Euler Hermes.

Lastly, regardless of the facility you select, you must be registered as an LLP within the UK or Ireland.

Kriya: Key facts

• Eligibility criteria: Exact criteria not specified, contact for details
• Application process: Online application and 30-minute demo
• Speed of decision: Under 24 hours

2. Growth Lending

Best for international companies

Growth Lending’s pricing at a glance:

• Advance rate: Up to 90%
• Service fees: Custom

What we like about Growth Lending

If your business’s cash flow needs are short-term, and you want a contact-free, ad hoc approach to releasing value from your invoices, Growth Lending’s selective invoice finance should be your first port of call.

Alternatively, if you require regular access to funding, Growth Lending’s flexible invoice discounting facility will be a better option. It’ll allow you to unlock funds either from the entirety of your sales ledger, or just a hand-picked selection of debtors.

Growth Lending also provides financing arrangements that are specifically tailored to growing businesses, offering up to £10m to your venture.

Growth lending: Key facts

• Eligibility criteria: Must be registered in the UK, US, Singapore or a Benelux country, and provide B2B services AND your debtors must be registered in an OECD country
• Application process: Online application
• Speed of decision: Not stated

3. Skipton Business Finance

Best for interest-free invoice finance

Skipton Business Finance’s pricing at a glance:

• Advance rate: Up to 90%
• Discount fee: Custom
• Service fee: Custom

What we like about Skipton Business Finance

With Skipton Business Finance, you’ll be eligible for finance against your invoices as soon as you submit them. It also promises to transfer the funds within 24 hours. You’ll receive up to 90% of the invoice’s value in a quick cash injection, and the company will advance anywhere between £25,000 and £5 million in funds.

Unlike several of the other invoice finance providers listed here, Skipton Business Finance also offers invoice factoring that’s entirely interest-free. You won’t pay any setup fees either, and it’s also available to new businesses – a rarity for many lenders.

As a Skipton invoice finance customer, you’ll also get access to a relationship manager, who’ll walk you through your bespoke package and answer any questions you may have.

As part of its invoice discounting service, Skipton offers a confidential solution called Confidential Invoice Discounting. In essence, it handles all the admin and hassle that comes with chasing clients (as a factoring service does) but, like a discounting facility, comes with all the benefits of a confidential facility.

Skipton Business Finance: Key facts

• Eligibility criteria: You have a trading business with a turnover over £250,000 AND you sell to B2B (business to business) not B2C (business to consumer), on credit terms
• Application process: Telephone
• Speed of decision: Not stated

4. Metro Bank

Best for its zero cancellation penalties

Metro Bank’s pricing at a glance:

• Advance rate: Up to 90%
• Service fee: Custom

What we like about Metro Bank

Metro Bank offers three main invoice finance facilities: factoring, discounting, and a funding line dubbed “small business offering”. This last one is ideal if your enterprise is in the early stages of its growth as it comes with just a single, transparent cost. There are no discount fees and Metro Bank also does away with the setup charge, and scraps any minimum costs going forward – all of which make Metro Bank one of the best invoice financing providers for small businesses.

With Metro Bank’s small business-oriented invoice finance solution, you can access a funding line of up to £100,000.

What we love most about Metro Bank’s approach is its surprisingly forgiving cancellation policy. In contrast to many other invoice finance providers we reviewed, which can be quick to penalise any attempt to leave a contract early, Metro Bank charges no cancellation fees. Instead it requires 28 days notice.

It’s also noteworthy that, with dedicated invoice finance teams based in Basildon, Guildford, and Sheffield, Metro Bank offers some solid in-person, email, and phone-based support, too.

Metro Bank: Key facts

• Eligibility criteria: Not stated
• Application process:  Online and telephone application
• Speed of decision: Under 24 hours

5. RBS FacFlow

Best for its dedicated, high-quality customer support

RBS FacFlow’s pricing at a glance:

• Advance rate: Up to 90%
• Discount fee: Custom
• Service fee: Custom

What we like about RBS FacFlow

RBS FacFlow impressed us with its excellent customer service. In addition to an abundant supply of online resources and robust phone and email-based support, RBS also has an array of branches that you can visit for expert invoice financial advice.

Similar to many other invoice finance providers in the UK, RBS promises to release up to 90% of the value of what you’re owed in as little as 24 hours. It requires a minimum annual turnover of £300,000.

RBS also offers a separate product – asset-based lending. As the name suggests, this service allows you to release cash from your business’s existing assets rather than your invoices. As the prerequisite of a £6.5 million annual turnover suggests, it’s best suited to larger businesses – particularly those looking to free up cash flow for an acquisition or rapid growth.

As the table shows, RBS’s invoice discounting service is the most accessible, particularly for businesses with a smaller turnover. However, these thresholds are still higher than the £250,000 turnover prerequisite Skipton demands.

RBS FacFlow: Key facts

• Eligibility criteria: Minimum turnover of £300,000
• Application process: Online application
• Speed of decision: Under 24 hours

6. Bibby Financial Services

Best for unlocking 100% of your invoice’s value

Bibby Financial Services’ pricing at a glance:

• Advance rate: Up to 100%
• Discount fee: Custom
• Service fee: Custom

What we like about Bibby Financial Services

Bibby Financial Services offers a wide range of invoice finance products, including invoice factoring, invoice discounting, construction finance, recruitment finance, and export finance.

Bibby also offers an invoice finance package that’s tailored to the needs and pain points of small businesses. It’s called Forward Finance and it’s available for business owners with a turnover of less than £300,000 per year.

If you opt for this package, you’ll be able to release up to 90% of your invoice’s value within 24 hours. You’ll also enjoy a £50,000 pre-approved funding limit, zero setup fees, the option to add protection from bad debt, and you can request an additional credit management service.

Selecting Bibby’s factoring and discounting services – or its solution for recruitment agencies – will mean you can unlock up to 100% of your invoice’s value.

Bibby Financial Services: Key facts

• Eligibility criteria: SMEs with £300,000 turnover
• Application process: Online and telephone application
• Speed of decision: Not stated

7. Sonovate

Best for recruitment agencies

Sonovate’s pricing at a glance:

• Advance rate: Up to 100%

What we like about Sonovate

Sonovate is among our top invoice finance picks for recruitment agencies because of the solutions it packs for this particular industry.

With Sonovate, you can release up to 100% of your invoice’s value within a day. Its customer support is top-notch, and – unlike most other invoice finance provider we’ve found – bad debt protection is included as standard (it usually costs extra).

Sonovate also boasts the slickest, user-friendly back office app we’ve come across in our invoice financing research. Colourful and very intuitive, you can use it to check in on the status of your funding, 24/7.

Finally, it has an excellent Trustpilot score of 4.7/5 (from just over 200 reviews), with many users praising its onboarding process and customer service.

Sonovate: Key facts

• Eligibility criteria: Minimum turnover not stated, aimed at recruitment agencies and consultancies
• Application process: Online application
• Speed of decision: Under 24 hours

8. Aldermore Invoice Finance

Best for its range of flexible, industry-specific funding options

Aldermore Invoice Finance’s pricing at a glance:

• Advance rate: Up to 90%

What we like Aldermore Invoice Finance

Aldermore offers both invoice factoring and discounting facilities, as well as an asset-based lending service for larger enterprises. You can expect to receive up to 90% of your ledger’s value paid out in a quick cash injection within 24 hours.

There’s also a range of industry-specific funding options on offer, including trade finance, contract finance, and invoice finance for construction businesses.

Aldermore’s funding limits are between £100,000 and £1 million. Your business will need to have an annual turnover of at least £750,000 to be eligible for Aldermore’s invoice factoring and discounting funding solutions.

Aldermore Income Finance: Key facts

• Eligibility criteria: SMEs with a turnover of £500k to £750k
• Application process: Telephone
• Speed of decision: A few days or weeks, depending on requirements

9. Close Brothers Invoice Finance

Best for medium-sized to large businesses

Close Brothers Invoice Finance’s pricing at a glance:

• Advance rate: Up to 90%
• Discount fee: Custom
• Service fee: Custom

What we like about Close Brothers Invoice Finance

Close Brothers offers a dedicated client manager who will liaise with you regularly to ensure you’re getting the most out of the relationship, as well as resolve any issues that may pop up along the way.

In addition to other asset-based forms of finance, Close Brothers also offers an invoice discounting facility. Here, the requirements for businesses are a bit more stringent – you’ll require an annual turnover of at least £750,000 to be considered.

Bad debt protection is available for a fee, and – as with most of the UK invoice finance providers that made the list – your funds typically arrive within a day.

You’ll also be able to access funding 24/7 via ‘IDeal’. It’s a cloud-based platform that integrates with most accounting software packages on the market, saving you time, money, and hassle by automatically reconciling your invoice payments.

Close Brothers: Key facts

• Eligibility criteria:Minimum turnover of £750k
• Application process: Telephone
• Speed of decision: Not stated

What Is the Difference Between Invoice Financing, Invoice Discounting, and Invoice Factoring?

Invoice financing is an umbrella term, typically describing two types of financing models: invoice factoring and invoice discounting.

While both facilities are means of securing credit against your unpaid invoices, there are a couple of key differences between them, and we’ll give you a hint as to the biggest: credit control.

Invoice factoring

Invoice factoring is when your financing company purchases your invoices outright.

Due to the nature of this agreement, the lender effectively ‘owns’ your ledger and it allows them to deal with your clients directly. This means the lender is legally entitled to chase your clients up for payment, as well as handle the credit control of your business.

Invoice factoring may also be recourse or non-recourse. Non-recourse agreements (also known as a form of bad debt protection) mean that, in the event that your customer is unable to pay (for instance, they become insolvent or declare bankruptcy), you won’t be eligible for paying back the loan.

Again, this is only possible in a factoring agreement because the lender has ‘bought’ your invoices from you. In other words, the responsibility for its ultimate repayment lies with them, not you. However, in an invoice discounting agreement, the finance provided against your invoice is only ever a loan. This means it always needs to be paid back.

Invoice discounting

If you want to ensure your customers do not know that you’re utilising third-party finance, you should opt for an invoice discounting facility.

Invoice discounting agreements allow you to retain the responsibility of chasing your unpaid invoices and to keep a tighter leash on your business’ sales ledger. It’s also cheaper than factoring because you’re not paying for the additional credit control services that those companies provide.

With invoice discounting, your customer will continue to pay you directly. Conversely, if you’re using a factoring company, your client will pay directly to the lender, and you’ll receive the remainder of the invoice’s value (minus the fees, of course) from the invoice provider themselves.

How Much Does Invoice Financing Cost?

Invoice financing costs are highly variable, and depend on your lender, your risk, your turnover, and your invoices.

When it comes to invoice factoring, there are two central charges to consider:

• The discount fee (0.5% to 5%): This is usually a percentage of the invoice you’re seeking funding for. The higher the value of the invoice you’re applying for finance for, the lower this fee will typically be, so it’s almost always better value to release funds from bigger invoices.
• The service fee (0.75% to 2.5%): This is a regular administration fee charged on a monthly or weekly basis by many (but not all) providers. Rather than being calculated against the value of your invoices, this cost is worked out as a percentage of your business’s annual turnover.

For discounting agreements, you can expect to pay in the region of 0.2% to 0.5%. This is cheaper than their factoring counterparts.

You’ll also have to shell out extra for any add-on services that aren’t included with the facility as standard. The most common of these is the charge for bad debt protection (or a non-recourse agreement), which safeguards you from having to foot the bill should one of your debtors go bust.

Bad debt protection will normally cost you between 0.5% and 2% of your annual turnover.

Invoice Financing Eligibility Criteria

Businesses that are eligible for invoice financing are those with a business-to-business (B2B) service model. In other words, your customers must be other businesses.

Previously, invoice finance was only available to large, well-established businesses. Now, there’s a host of suppliers catering specifically to small businesses and startups.

There’s also usually a requirement concerning your annual turnover – and even the least stringent of these typically comes to at least £50,000 per year.

Skipton Business Finance is an example of a company that sports excellent deals for small businesses seeking fast, flexible (and, in some cases, interest-free) invoice finance.

Other factors an invoice financing company may consider – and which may affect your eligibility for credit – involve your customer base and its creditworthiness. For instance, you may find it more difficult to be approved if you’re over-reliant on a single client. You’re also likely to struggle with eligibility for invoice finance if your customers aren’t considered by a lender to be trustworthy.

Will Customers Know I’m Using an Invoice Financing Company?

Your customers don’t have to know that you’re using invoice financing.

The best factoring companies – such as Skipton Business Finance – offer a completely confidential service and will chase payment under your company name and branding.

Plus, while credit control is a key function of invoice factoring, it doesn’t have to be so with invoice discounting. Some invoice finance solutions won’t come with a credit control service at all. This means you’re free to chase your own invoices and retain autonomy over your hard-won customer relationships.

If keeping factoring a secret from customers is important to you, be sure to mention this early on in your negotiations with providers.