Invoice finance is a type of business funding that turns unpaid invoices into immediate working capital: a provider advances most of an invoice’s value up front and releases the balance, minus its fee, once the customer pays. What has changed in recent years is not the product but the choice of provider.
The UK market now runs from high-street and challenger banks to long-established independents, whole-of-market comparison services and a wave of fully digital platforms, each with different advance rates, fee models and eligibility rules.
For a business that sells to other businesses on credit terms, the practical question is less whether invoice finance can help and more which provider fits the way it trades. The companies below are among the UK’s better-known options, with a note on what each does well and the kind of business it tends to suit.
How Was This List Put Together?
Each provider was reviewed against the information published on its own website, weighing the clarity and range of its invoice finance offering and the breadth of businesses it serves. Advance rates, funding limits and turnaround times come directly from each company and are subject to change, so treat them as a starting point and confirm current terms before entering any agreement.
1. Novuna Business Cash Flow
Novuna Business Cash Flow is a UK business cash flow specialist that helps B2B companies release the cash tied up in unpaid invoices, pairing its own award-winning facility with a whole-of-market service that compares providers on a business’s behalf.
That combination is the distinctive part: it can fund a company directly or match it to one of several funding partners, which makes it a sensible first stop for a business still weighing its options. Its invoice finance advances a percentage of an invoice’s value, typically up to 90% and often within 24 hours, with same-day funding available and rates stated from 0.5%.
The in-house service adds a debtor portal, a client trust account with same-day access and 24/7 visibility, AI-driven payment allocation to keep charges down, and a six-month trial before any rolling contract.
Novuna reports funding more than £2bn to over 1,000 SMEs each year, draws on more than 40 years in business finance, and is a trading style of Mitsubishi HC Capital UK PLC, authorised and regulated by the Financial Conduct Authority.
- Best for: B2B businesses that want to compare the whole market alongside a strong in-house option, backed by real relationship managers.
- Standout feature: A combined comparison-and-provider model that pairs an in-house facility with access to multiple funding partners.
2. Bibby Financial Services
Bibby Financial Services is one of the UK’s largest independent invoice finance specialists, funding more than 8,500 businesses.
Founded in 1982 and part of the long-established Bibby Line Group, it has built its name on range and sector knowledge rather than a single off-the-shelf product.
Alongside factoring and confidential invoice discounting, it offers finance shaped around particular industries, with dedicated construction, recruitment, export and trade solutions, and more than two decades funding the construction sector specifically.
Its invoice finance releases up to 85% of an invoice’s value, usually within 24 hours of a facility going live; with factoring, Bibby’s credit control team collects payments, while invoice discounting leaves that with the business and stays confidential.
- Best for: Established SMEs wanting a full-service independent provider with genuine sector expertise.
- Standout feature: Industry-specific finance, particularly strong for construction and recruitment businesses.
3. Ultimate Finance
Ultimate Finance is an independent, relationship-led funder that has backed UK businesses since 2002, building facilities designed to flex as a company grows rather than cap it early.
It’s invoice finance advances up to 95% of an invoice’s value, with funds paid within 24 hours of an invoice being received and a facility usually live within a week.
Funding runs up to £10m, and a business can add a cashflow loan of up to £500,000, layer in confidentiality, credit control or bad debt protection, and manage everything through a 24/7 portal.
Each facility comes with a named relationship manager matched by sector and location, serving industries from manufacturing and construction to transport and technology.
- Best for: Growing businesses that value a high advance rate and a named relationship manager.
- Standout feature: Up to 95% advance with an optional cashflow-loan top-up and tailored, sector-aware support.
4. Kriya
Kriya is a digital-first provider offering selective invoice finance to established B2B businesses. Formerly MarketFinance, it became part of Allica Bank in October 2025, which widened its funding base while keeping its technology-led model.
The selective approach lets a business fund individual invoices, pay-as-you-go or by subscription, with up to 90% of an invoice’s value advanced within 24 hours of verification, and faster where a business connects its bank account.
Funding runs through a trust account and the process is designed to stay confidential, so customers are not openly told that Kriya is involved; accounting integrations speed up verification and keep the business in control of its own customer relationships.
Launched in 2012, it has advanced billions of pounds of credit to UK SMEs.
- Best for: Established businesses wanting to fund selected invoices digitally, without committing the whole ledger.
- Standout feature: Flexible selective funding, pay-as-you-go or subscription, now backed by Allica Bank.
5. Hydr
Hydr is a fully digital provider built for smaller UK businesses that want speed and simplicity. Its proposition is deliberately pared back: fund a chosen invoice and receive up to 100% of its value, minus a single fixed fee, in as little as 24 hours.
The platform links directly to cloud accounting software, so a business can sign up in minutes, connect its accounts, run an eligibility check and pick which invoices to fund, with fixed and transparent pricing that makes each advance easy to predict.
The technology handles the funding while a human team manages the payment relationship with customers, taking on credit control with a light touch. Hydr has processed over 11,000 invoices to date.
- Best for: Small businesses and sole traders wanting a fast, fully digital, pay-per-invoice option.
- Standout feature: Up to 100% of the invoice paid, minus one fixed fee, with no long-term tie-in.
How to Compare Invoice Finance Providers?
Advance rates catch the eye, but the better test is how a facility fits the way a business actually operates. A few things are worth weighing before signing.
- Factoring or discounting: Factoring hands credit control to the provider, which saves time but means customers know; discounting keeps collections and the arrangement in-house and confidential.
- Whole-ledger or selective: Some providers fund the entire sales ledger; others let you choose individual invoices. Selective and pay-as-you-go options suit occasional gaps, while a full-ledger facility suits steady, ongoing funding.
- Total cost, not headline rate: Pricing usually combines a service fee with a discount charge on the funds drawn. Compare the all-in cost of a facility rather than the advertised advance percentage.
- Eligibility and speed: Check minimum turnover, how quickly a facility can be set up, and how fast funds arrive once an invoice is raised – these vary widely between banks, independents and digital platforms.
- Support and sector fit: A dedicated relationship manager or real sector experience can matter as much as price, particularly where invoicing is complex.
Common Questions
What is Invoice Finance and How Does It Work?
Invoice finance lets a business borrow against money it is already owed. When an invoice is raised to another business, the provider advances an agreed share of its value, often up to 90%, and pays the remainder, minus fees, once the customer settles. The funding is secured against the invoices themselves rather than against business assets.
Is Invoice Finance the Same as Factoring?
Not quite. Factoring is one form of invoice finance, where the provider also runs credit control and collects from customers. Invoice discounting is the other main form, where the business keeps collections and the facility can remain confidential.
How Much of an Invoice Can Be Advanced?
It depends on the provider and the invoices involved, but advances are commonly up to 90%, with some providers going to 95% or, in certain cases, 100%. The balance follows once the customer pays.
How Quickly Can Funds Be Released?
Once a facility is in place, many providers release funds within 24 hours of an invoice being submitted, and some digital platforms can be quicker where a business has connected its accounting software or bank account. Setting up the facility itself can take anywhere from a day to a couple of weeks depending on the provider.
What Does Invoice Finance Cost?
Most facilities combine a service fee for running the arrangement with a discount charge, similar to interest, on the funds drawn. The figures depend on invoice volumes, customer risk and how the facility is structured, so ask for a full cost breakdown before committing.
Can Newer or Smaller Businesses Qualify?
Often, yes. Because the funding leans on the creditworthiness of a business’s customers rather than its own trading history, invoice finance can suit younger and smaller businesses, and several providers work with sole traders or set no minimum turnover.
Final Thoughts
The right invoice finance company depends on how a business trades, how quickly it needs cash and how much support it wants alongside the funding.
Novuna Business Cash Flow is a practical first port of call for B2B businesses, given its mix of an in-house facility and a whole-of-market comparison service, but the established independents, sector specialists and digital platforms above each suit different needs.
It is worth approaching more than one provider and comparing facility type, total cost and eligibility side by side before committing – the surest route to the right fit.
The information in this article is provided for general guidance only. It does not constitute financial advice or a recommendation and should not be relied upon when making funding decisions. Businesses should obtain independent professional advice before entering into any finance agreement.
