The best invoice finance companies for UK businesses in 2026 include Bibby Financial Services (no minimum turnover, startup-accessible), Kriya (pay-as-you-go selective discounting, no long-term contract), Novuna Business Cash Flow (lowest entry threshold at £50,000 turnover), Skipton Business Finance (interest-free Skipton Select option, 3-month trial), and Close Brothers Invoice Finance (FTSE 250-backed, Growth Guarantee Scheme access). We reviewed each provider’s products, fees, eligibility, and verified customer ratings to build this comparison.
Our IGF Invoice Finance review breaks down what you get and what it actually costs.
- Bibby leads with no minimum turnover - Most accessible provider for startups versus competitors requiring £250K+ annual revenue
- Costs range 0.75-2.5% per invoice - Significant pricing variations between providers based on risk assessment and volume
- Kriya offers fastest digital onboarding - 48-hour setup beats traditional providers’ 2-4 week application processes
- Close Brothers best for large businesses - £500K+ turnover requirements suit established companies needing substantial facilities
- Advance rates vary 80-90% of invoice value - Higher funding percentages than overdrafts or traditional working capital solutions
Best Invoice Finance Companies UK 2026: Quick Comparison
The best invoice finance company depends on your size and needs: Bibby Financial Services is best for startups and businesses of any size (no minimum turnover); Kriya is best for flexible, no-contract selective discounting; Novuna is best for smaller businesses (from £50,000 turnover); Skipton is best for businesses wanting interest-free factoring or a trial period; Close Brothers is best for established mid-market businesses (£500,000+ turnover); Pulse Finance is best for relationship-managed mid-market SMEs. All advance up to 90% of invoice value within 24 hours.
If you’re weighing up these two, our recourse vs non-recourse factoring guide lays out the key differences.
| Provider | Min. Turnover | Sole Traders | Startups | Trustpilot | Standout Feature |
|---|---|---|---|---|---|
| Bibby Financial Services | None (factoring); ~£100K (discounting) | Yes | Yes | 4.7/5 (934 reviews) | No minimum; widest sector reach; acquired Aldermore WCF 2023 |
| Kriya | £100,000 | No (Ltd Co/LLP only) | Limited | 4.1/5 (580 reviews) | PAYG selective discounting, no long-term contract |
| Novuna Business Cash Flow | £50,000 | Likely | Yes | 4.8/5 Feefo | Lowest entry threshold; 6-month trial; Lender of the Year |
| Skipton Business Finance | ~£300K (flexible) | Yes | Yes (3-month trial) | 98% self-reported satisfaction | Interest-free Skipton Select; LedgerLite entry product |
| Pulse Finance | ~£350K–£1M | Unconfirmed | Limited | 4.3/5 (9 reviews) | Independent MBO, relationship-managed, up to £5M |
| Close Brothers | £500,000 (standard) | No (standard) | GGS only | 3.7/5 group (motor finance skews score) | FTSE 250-backed; ABL multi-asset; Growth Guarantee Scheme |
| NatWest FacFlow | £300,000 | Unconfirmed | No | N/A (B2B product – NatWest retail score not applicable) | Bank-backed discounting portal; no existing account required |
Invoice Factoring vs Invoice Discounting: What Is the Difference?
Invoice factoring: the finance company manages credit control on your behalf – your customers are aware of the arrangement and pay the factoring company directly. Invoice discounting: confidential – you retain credit control and your customers are unaware; they continue to pay you directly (into a trust account). Factoring suits smaller businesses without dedicated credit control; discounting suits larger, established businesses wanting confidentiality. Both advance 80–90% of invoice value within 24 hours and charge a discount rate (interest) plus a service fee.
| Feature | Invoice Factoring | Invoice Discounting |
|---|---|---|
| Credit control | Provider manages | You manage |
| Confidential? | No – customers aware | Yes – customers unaware |
| Min. turnover (typical) | £50K–£350K depending on provider | £100K–£500K depending on provider |
| Cost | Higher (service fee covers collections) | Lower (no collections service) |
| Best for | SMEs, startups, construction, recruitment | Established businesses with credit control |
How Invoice Finance Costs Work UK 2026
Invoice finance has two cost components: (1) a service charge – a percentage of annual turnover covering administration and (for factoring) credit control, typically 0.5–3% for factoring and 0.1–1% for discounting; and (2) a discount charge – interest on the amount advanced, typically 1.75–4.5% above the Bank of England base rate (currently 3.75%), giving effective annual rates of approximately 5.5–8.25% on drawn balances. Selective invoice finance (Kriya) charges a flat 1–3% per invoice with no monthly commitment. Always compare the total annual cost (both components) rather than the headline advance rate.
Who Is Invoice Finance For?
Invoice finance is for B2B businesses that invoice other businesses on standard payment terms (30–90 days). It is most commonly used in: recruitment (weekly payroll vs 30-day invoices), construction (stage payment gaps), logistics and transport (fuel costs vs 60-day terms), manufacturing (raw material costs vs 90-day buyer terms), and professional services. It is not suitable for B2C businesses, cash-on-delivery businesses, or businesses that receive payment before completing work (subscriptions, retail).
How We Chose These Providers
We evaluated UK invoice finance providers across six criteria: minimum turnover threshold (accessibility), product range (factoring, discounting, selective), pricing transparency, customer reviews (Trustpilot, Feefo), regulatory standing (FCA status, Companies House), and sector breadth. We excluded providers that have been dissolved, acquired without continuity, or no longer actively offer invoice finance to UK SMEs. All data was verified against provider websites, Companies House filings, and FCA register entries in March 2026.
The UK invoice finance market serves over 45,000 businesses with more than £20 billion in outstanding balances (UK Finance, 2025). The market divides into three tiers: bank-backed providers (NatWest FacFlow, Barclays, HSBC), large independents (Bibby, Close Brothers), and specialist/fintech providers (Kriya, Novuna, Skipton). Your best fit depends primarily on your turnover level and whether you want factoring (outsourced credit control) or discounting (you retain control).
- Invoice Factoring UK 2026 – how factoring works, fees, and eligibility
- Invoice Discounting UK – confidential discounting for larger businesses
- What Is Invoice Finance? – full overview comparing all types
- Bibby Financial Services Review – largest independent, no minimum turnover
- Kriya Finance Review – flexible PAYG discounting, no long-term contract
- Working Capital Finance – broader options beyond invoice finance
- RBS FacFlow Invoice Finance Review – bank-backed discounting portal, £300K minimum turnover
- Pulse Finance Review – independent, relationship-managed invoice finance for mid-market SMEs
