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The Top 9 Invoice Financing Companies in the UK

fast cashflow solutions

Invoice financing (sometimes called Invoice Discounting) is a powerful solution for improving cash flow and managing working capital effectively. In the UK, there are plenty of flexible services that can help you:

  • fund growth
  • overcome cash flow challenges
  • maintain smooth operations.

When considering an invoice financing company, you want to focus on highlighting their key features, benefits, and how they can support your business’s financial health.

We at FundingBay can help you pinpoint the ideal Invoice Financing solution for your business.

Top UK Invoice Financing Companies

Whether you’re a small startup or an established enterprise, these services offer tailored solutions to meet your unique needs and ensure your business thrives.

In no particular order, the top UK invoice financing companies are:

  • Triver – fast and flexible selected debtor financing.
  • Ultimate Finance – robust invoice financing services with stellar customer service.
  • Bibby – full-ledger solutions with personalised support.
  • Close Brothers – tailored finance options and expert industry knowledge. 
  • Novuna – innovative financing with competitive terms.
  • eCapital – efficient and reliable funding to boost cash flow.
  • Cynergy Bank – custom finance solutions with a focus on SMEs.
  • Lloyds Bank – trusted banking services with extensive financial products. 
  • Optimum Finance – expert financial support with flexible financing options.

Triver

Best invoice finance rates UK

The Basics

Triver offers Invoice Discounting services distinct to standard invoice financing

They still provide a means to generate cash injections from client invoices, up to a limited facility, but the customer chooses which invoices to advance.

Meanwhile, the use of the facility is invisible to your clients.

Specialties

Triver caters exclusively to small businesses, across all industries, with services designed for those new to invoice financing or holding large, singular cash receipts.

Why They Stand Out

As a technology-driven service, Triver simplifies the application and funding process, making it easy for businesses to access the necessary funds quickly and securely. 

Fees

Setting up a Triver facility is free. There are no setup fees, prepayment fees, or interest. 

Instead, you are charged a simple discount fee per transaction. This is not a flat rate, but rather calculated based on your daily rate applied on the value of the invoice. 

Industry rates tend to range from 1% – 5%. 

Limits and Restrictions

Trivers offers a facility of up to £250,000.

In order to benefit from this service, you’ll need to be:

  • Generating an annual turnover of £100k+
  • Active for more than two years
  • Untied to another lender with regards to your receivables portfolio.

Ultimate Finance

Invoice factoring vs discounting UK

The Basics

Ultimate Finance provides business with quick cash by advancing up to 95% of the value of unpaid invoices. The service is designed for any B2B operation selling on credit.

Specialties

Customers have the option of opting for the additional Debtor Protection service.This minimises risk from late or non-payment of invoices to safeguard cash flow integrity. 

Under this option, the risk of non-payment is deferred to Ultimate Finance. 

They also offer sector specific Working Capital finance solutions for:

  • Construction
  • Recruitment
  • Trade.

Why They Stand Out

This is a financing option known for its customer service quality.

You can expect specialised support from a Relationship Manager, as well as 24/7 account management via their user friendly online platform. 

Fees

While customers will generally need to pay a discount rate of around 2%, charges are decided based on the nature of the facility and whether you opt to retain responsibility for invoice collection.

Limits and Restrictions 

Ultimate Finance UK offers up to £7M in funding, depending on your needs. 

They provide tailored support to any and all businesses operating in the B2B sector.

Bibby

Best invoice discounting companies UK

The Basics

Bibby is an independent service offering both Invoice Discounting and Invoice Factoring packages, securing up to 95% of your invoice value (100% in some cases) within 24 hours of setup. 

Specialities

Staged payments, overseas payments, and temporary staff payments are all covered by Bibbys Contractual, Foreign Exchange, Export Finance, and Recruitment Finance solutions

They also offer a Bad Debt Protection package that ensures 24/7 protection against up to 90% of bad debt, with back date protection for up to 60 days.

Why They Stand Out

Bibby’s wide range of services is easily its greatest asset.

Beyond the aforementioned, this includes their excellent Forward Finance option, created for small businesses and offering up to 90% of your invoices’ value in 24 hours.

Additionally, Bibby can provide a supplementary credit management service. 

Fees

Agreements and facilities are 100% tailored to the customer and dependent on which additional services are used. 

Generally, discounts fees are at around 1-3% – 5%, while the service fee is 0.5 – 3.2%.

Limits and Restrictions 

Depending which solution you opt for, you can receive up to a £5K – £10M facility.

Businesses need only have financial stability and a clear invoicing history.

Close Brothers

cashflow solutions

The Basics

Close Brothers provide both invoice factoring and invoice discounting solutions, promising up to 90% of the value of unpaid invoices to help your company maintain liquidity without waiting for customer payments​.

Specialities

This option is particularly exceptional for recruitment companies, as they make use of the iDeal recruitment software platform. 

This integrates smoothly with your chosen accounting system in order to release the requested funds in real-time with your ledger. 

It ultimately helps you save on overheads and accounting costs, while dramatically reducing the potential margin for error. 

Why They Stand Out

Opting for one of Close Brothers’ services includes access to a dedicated client manager. Their job is to resolve any issues and generally ensure an optimal service for your needs.

They also go much further than most options in terms of tailoring the service to your industry, turnover, future potential, and overall business goals.

Finally, there’s the Asset-Based Lending option. This combines invoice finance with additional funding against other business assets such as property, stock, and machinery. It’s tailored for larger businesses needing higher levels of funding.

Fees

The typical range for discount fees is 2.5 – 3.5%, while service fees are 0.5 – 2%.

Limits and Restrictions

As an invoice financing service streamlined for larger operations, Close Brother requires your business to have an annual turnover of above £750,000. 

Novuna

invoice factoring

The Basics

Novuna offers flexible invoice factoring solutions, advancing up to 90% of the value of unpaid invoices within 24 hours. 

By selling their invoices to Novuna, businesses can focus on growth while Novuna handles the credit control and collections.

Specialities

Novuna boasts tailored  factoring solutions for a wide range of industries, including manufacturing, recruitment, transport, and professional services. 

Their systems are designed to integrate seamlessly with existing accounting software, providing real-time access to funds and reducing any cumbersome administrative burdens. 

Additionally, they offer non-recourse factoring to protect businesses from bad debts.

Why They Stand Out

Novuna stands out due to its personalised approach and comprehensive industry experience. Each client receives a dedicated manager who ensures the services are fit to meet their specific business needs. 

Novuna also offers flexibility with their financing options, including selective invoice financing and reverse factoring, providing businesses with the best possible financial support​.

Fees

Their services fee tends to range from 1% to 4.5% and their interest rates vary depending on the agreement terms and your creditworthiness. 

Limits and Restrictions

The client business should have a minimum annual turnover of £50,000. Startups and growing businesses are also eligible. 

Note that the creditworthiness of the business’s customers is a key factor in determining the terms and conditions of the financing arrangement.

Lloyds Bank

small business finance

The Basics

Lloyds Bank is a surprisingly flexible financial services provider with both Invoice Factoring and Invoice Discounting options. They’ll advance up to 90% of invoice value in 24 hours.

They also offer support in terms of sales ledger management.

Specialities

Lloyds Bank’s invoice financing services are tailored for a variety of industries including manufacturing, wholesale, recruitment, and services. 

Their systems are designed to integrate seamlessly with most accounting software, providing real-time access to funds and reducing overhead and accounting errors.

Why They Stand Out

Their service  includes managing the sales ledger and credit control processes, freeing up valuable time for business owners.

Additionally, Lloyds Bank offers an Asset-Based Lending for larger businesses that require substantial funding.

Fees

All financing agreements are priced per the client, with various Operating Conditions Fees and Charges. 

These include a £150 reconciliation fee, an advance rate fee of 5.5% of the additional funding made available, and a 5.5% charge for releasing funds in excess of your availability. 

Limits and Restrictions

Lloyds Bank’s invoice finance services are aimed at businesses with an annual turnover of at least £250,000. 

The facility grows in line with the business turnover, making it a flexible solution for managing cash flow. 

eCapital

Best invoice financing rates UK

The Basics

ECapital provides invoice factoring and invoice discounting solutions designed to help businesses access up to 90% of the value of their unpaid invoices. 

Specialities

ECapital specialises in offering tailored invoice financing solutions to various industries, including manufacturing, recruitment, healthcare, and consumer goods. 

They also provide Selective Invoice Finance, which allows businesses to choose specific invoices or customers to finance, offering additional flexibility​

Why They Stand Out

ECapital supports businesses looking to grow and effectively expand into new markets, or manage seasonal fluctuations with facilities of up to £2.5M.

They emphasise responsive, adaptive solutions, with thorough, transparent service.

Their proprietary software, eCapital Connect, offers 24/7 access to funds and account management​, while offering a dedicated relationship manager to each client. 

Fees

Any factoring fees are dependent on the service, but will generally range from 1% – 5% in terms of both discount fees and service fees. 

Limits and Restrictions

ECapital’s invoice finance services are available to businesses with a projected turnover of at least £100,000. The financing facility can provide up to £4M. 

Cynergy Bank

Invoice finance for SMEs UK

The Basics

Cynergy offers robust invoice financing solutions via its asset-based lending (ABL) division, Cynergy Business Finance. This service allows businesses to access up to 90% of the value of their unpaid invoices, providing a vital cash flow boost. 

Typically, funds are advanced within 24 hours of invoice submission, helping businesses manage their liquidity more effectively​. 

Specialities

Cynergy Bank’s invoice financing is tailored for small to medium-sized enterprises (SMEs) across various industries, including manufacturing, retail, construction, and technology. 

The bank also provides support for businesses with strong environmental principles and those involved in acquisitions. 

Why They Stand Out

Cynergy Business Finance distinguishes itself by offering a relationship-driven approach. 

Their solutions are flexible and scalable, designed to adapt to the changing needs of businesses. 

Additionally, Cynergy offers facilities that range from £300,000 to £20M, making them suitable for businesses at different stages of growth​. 

Fees

The fees for Cynergy Bank’s invoice finance solutions typically include a service fee and a discount fee based on the value of the invoices, generally between 1% – 5%.. 

Specific rates are determined based on the risk profile and individual agreements. The bank emphasises transparency in its fee structure, ensuring there are no hidden costs​.

Limits and Restrictions

Their  invoice finance solutions are aimed at businesses with an annual turnover of at least £M. The financing facility can provide funding from £200,000 up to £20M. 

This makes it a suitable option for established businesses looking to scale up or manage cash flow fluctuations. 

Optimum Finance

Invoice finance reviews UK

The Basics

Optimum Finance provides invoice financing solutions to SMEs, allowing businesses to access up to 90% of the value of their unpaid invoices. 

Specialities

Their services are particularly beneficial for businesses experiencing rapid growth, seasonal fluctuations, or those needing to improve their cash flow. 

Optimum Finance promotes flexibility and the use of advanced technology to streamline the funding process, making it easy and efficient for businesses to access the capital they need.

Why They Stand Out

Optimum Finance stands out due to its commitment to providing fast, flexible funding solutions supported by experienced staff and innovative technology. 

They offer a unique feature of instant funding decisions through their online platform, allowing businesses to quickly determine their funding eligibility. 

They also provide debtor protection to protect businesses against the risk of non-payment and their expert relationship managers offer ongoing support and advice to clients. 

Fees

The discount fee on Optimum’s service is levied at an agreed percentage above the Bank of England Base Rate. Specific fee structures can vary depending on the individual agreement and the risk profile of the invoices​.

Limits and Restrictions

Optimum Finance’s invoice finance services are available to SMEs with various levels of annual turnover. 

The funding facility can provide up to £4M, making it suitable for businesses of different sizes and stages of growth. 

The service is designed to be flexible and scalable, growing in line with your sales turnover​.

What is Invoice Financing?

Invoice financing is a tool for businesses of all kinds to turn unpaid receipts into cash injections. The financing service provides a percentage of the funds tied up in those unpaid invoices, providing a quick and easy solution to immediate cash flow issues. 

Your business can quickly receive upwards of 90% of the total amount owed,  depending on the terms of the agreement. 

Once your customers settle their invoices, the borrowed amount is then repaid to the financing company, helping you to better manage working capital. 

Invoice Financing Vs Invoice Factoring

An invoice financing company typically offers two types of services:

  • Invoice Financing
  • Invoice Factoring

Both provide a quick cash injection when needed, but suit different business needs.

Invoice Financing

The key feature here is that the customer retains control over its sales ledger. 

Your unpaid invoices are sent to the financing company, who pays out a percentage of the value and deducts the agreed service fee.

Issuing and collecting payments continues to fall on you. 

Invoice Factoring

Here, the invoice financing company takes over the entire sales ledger. They will manage the collection of unpaid invoices. 

Barriers to Invoice Financing 

While invoice financing offers a quick solution for cash flow issues, there are several barriers that businesses might face:

  1. Service Fees and Costs: The service fees and costs associated with invoice financing tend to add up over time. These expenses can impact the 
  2. profitability of your business if you’re not careful. 
  3. High Turnover Requirements: Many invoice financing companies require businesses to have a high turnover. This is why finding the right solution requires careful consideration of your own operations. 
  4. Credit Ratings: A good credit rating is often a prerequisite for securing invoice financing. Companies with poor or limited credit history will likely struggle to find favourable terms or may be denied financing altogether.
  5. Loss of Customer Control: In the case of invoice factoring, businesses may lose control over their customer interactions as the financing company takes over the collection process. The alternative in this case is traditional invoice financing. 
  6. Potential for Dependency: Relying heavily on invoice financing can create a dependency that may hide underlying cash flow management issues. It’s essential for businesses to address the root causes of cash flow problems rather than solely relying on financing solutions.

Conclusion

Invoice financing is a vital tool for many businesses in the UK, offering a flexible and efficient way to manage cash flow and support growth. 

Leading companies like Bibby, ECapital, Triver, and Optimum Finance each provide unique strengths tailored to different business needs.

Considering your options regarding invoice financing can be complex, but FundingBay can help simplify the process. As a trusted broker, FundingBay connects businesses with the right financing solutions tailored to their unique needs. 

Visit FundingBay today to take the first step towards securing the financial support your business needs, or try our free Invoice Finance Calculator to get an idea of your monthly interest payments, as well as any additional monthly costs. 

Invoice Finance Calculator

Our Invoice Finance Calculator is easy to use and takes just seconds to learn how much it will cost you to free up your future cashflow.

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