Invoice discounting is a form of invoice finance that lets a business borrow against the value of its unpaid invoices while keeping the arrangement confidential and staying in charge of its own credit control. The provider advances a large share of each invoice – usually up to around 90% – within about 24 hours, then releases the balance, minus its fee, once the customer pays. Unlike factoring, the customer never deals with the funder: collections carry on exactly as before, which is why discounting tends to suit established businesses that already run their own credit control and want funding to stay behind the scenes. Choosing between providers comes down to advance rates, fees, turnover requirements and the kind of support on offer. The providers below are among the UK’s better-known options for business invoice discounting, with a note on what each does well and who it tends to suit.
How this review chose these providers
Each provider here was assessed against the information published on its own website, looking at whether it offers genuine confidential invoice discounting, the clarity of its terms, and the range of businesses it serves. Advance rates, turnover thresholds and fees are taken directly from each company and can change with individual circumstances, so treat them as a guide and confirm the detail before applying.
1. Novuna Business Cash Flow
Novuna Business Cash Flow is a UK business cash flow specialist that helps established B2B companies release cash from unpaid invoices confidentially, pairing its own facility with a whole-of-market service that compares invoice discounting providers to find a suitable deal. That dual role is what makes it a useful first stop: it can fund a business directly or line up quotes from multiple providers, so a company can weigh the market without approaching each lender itself. Its confidential discounting advances up to 90% of an invoice’s value within 24 hours, with rates stated from 0.5% and the business keeping full control of collections throughout. Novuna reports funding more than £2bn to over 1,000 SMEs each year, brings more than 40 years of experience in business finance, and is a trading style of Mitsubishi HC Capital UK PLC, authorised and regulated by the Financial Conduct Authority. It is geared to established B2B businesses, typically those turning over £500,000 or more with their own credit control function.
Who it’s best suited to: established B2B businesses that want to compare the market while keeping an in-house option open, with expert support on hand.
2. Close Brothers
Close Brothers is one of the UK’s most established invoice finance specialists, part of the FTSE 250 merchant banking group Close Brothers. Its confidential invoice discounting lets a business draw up to 90% of an invoice’s value, often within 24 hours of raising it, while keeping collections and customer relationships entirely in-house – clients aren’t told the finance is in place. Facilities are run through IDeal, the company’s award-winning online platform, which integrates with more than 285 accounting packages including Xero, Sage and QuickBooks, automatically reconciles payments and gives round-the-clock access from anywhere. Each client also has a dedicated client manager, and the group runs specialist teams for sectors such as construction and recruitment where invoicing is more complex. Its bank-backed heritage and asset-based lending capability make it a common choice for larger or transaction-driven funding needs, such as mergers, acquisitions and management buy-outs.
Who it’s best suited to: established businesses wanting a bank-backed specialist with strong technology and sector expertise.
3. Bibby Financial Services
Bibby Financial Services is one of the UK’s largest independent invoice finance specialists, funding more than 8,500 businesses and part of the long-established Bibby Line Group. Its confidential invoice discounting advances funds against the sales ledger – up to 85% of invoice value, usually within 24 hours of a facility going live – while the business keeps responsibility for collections and the arrangement stays invisible to customers. As an independent rather than a bank, Bibby leans on flexibility and sector knowledge: it runs dedicated construction, recruitment, export and trade finance teams, and has a network of regional offices for businesses that prefer face-to-face contact. That combination of independence, scale and industry-specific experience is what tends to set it apart for established SMEs running their own credit control.
Who it’s best suited to: established SMEs wanting a large, independent specialist with genuine sector depth.
4. HSBC
HSBC offers confidential invoice discounting through its UK business banking arm, and its proposition is built around scale and international reach. A business can draw up to 95% of an invoice’s value the same day, with the facility open to HSBC and non-HSBC customers alike and able to cover international as well as UK sales. The bank’s digital software integrates with accounting systems to upload invoices automatically, its SmartSweep technology moves customer payments into a receivables finance trust account, and the whole facility is managed online through HSBCnet. Collections stay with the business and the arrangement remains confidential. For companies trading across borders, or those wanting to consolidate funding within an existing banking relationship, HSBC’s global network and multi-currency capability are the main draw.
Who it’s best suited to: established businesses, particularly those with international sales or an existing HSBC relationship.
5. Skipton Business Finance
Skipton Business Finance is the invoice finance arm of Skipton Building Society, which gives it a mutual, member-focused parent rather than shareholders to answer to. Its confidential invoice discounting advances up to 90% of the value of the sales ledger, releasing the balance once customers pay, and – as with all discounting – the business keeps control of credit management while the funder stays out of sight. Skipton’s pitch is relationship-led: every client gets a dedicated relationship manager empowered to make decisions, and facilities are designed to scale with the business rather than needing constant renegotiation. With more than 20 years behind it and facilities structured for turnovers from smaller SMEs up to the mid-market, it suits businesses that value a personal, long-term funding relationship over a purely automated platform.
Who it’s best suited to: businesses that want a relationship-led, building-society-backed provider with flexible facilities.
What to weigh up before choosing
Invoice discounting facilities can look similar on the surface, so a few practical points are worth checking before committing.
- Turnover threshold: Discounting assumes you run your own credit control, so providers usually set a minimum turnover – often around £500,000, though some specialists go lower. Below that, factoring or selective invoice finance may be a better fit.
- Advance rate and speed: Providers typically advance up to 90–95% of invoice value, often within 24 hours. Check both the percentage and how quickly funds land once an invoice is raised.
- The all-in cost: Pricing usually combines a service fee (commonly around 0.2%–0.5% of turnover) with a discount charge on the funds drawn. Compare the total, not just the headline advance rate.
- Confidentiality and control: Confirm the facility is genuinely confidential and that collections stay with you if that matters – this is the core distinction from factoring.
- Technology and support: Some providers lead on online platforms and accounting integrations, others on a dedicated relationship manager. Decide which matters more to how you work.
Invoice discounting: your questions answered
What is invoice discounting? Invoice discounting is a form of invoice finance that lets a business borrow against its unpaid invoices while keeping the arrangement confidential. The provider advances a percentage of each invoice, usually up to around 90%, and releases the rest, minus its fee, once the customer pays. The business continues to manage its own credit control and collections.
How is invoice discounting different from factoring? The main difference is who chases payment. With invoice discounting, the business keeps control of collections and customers usually aren’t aware a funder is involved. With factoring, the provider takes over credit control and collects from customers directly, so the arrangement is visible to them.
Is invoice discounting always confidential? Usually, yes. Confidential invoice discounting is the standard form, meaning customers continue to pay the business as normal and aren’t told a finance arrangement is in place. Payments are typically directed into a designated or trust account held in the business’s own name.
What turnover do I need for invoice discounting? Because discounting relies on the business running its own credit control, providers tend to set a minimum turnover – often around £500,000 a year, though some specialists work with smaller businesses. Firms below that threshold are often better suited to factoring or selective invoice finance.
How quickly are funds released? Once a facility is live, funds are usually available within 24 hours of raising an invoice, and some providers advance the same day. Setting up the facility itself can take anywhere from a few days to a few weeks, depending on the provider and the checks involved.
How much does invoice discounting cost? Costs generally combine a service fee – often around 0.2% to 0.5% of turnover – with a discount charge, similar to interest, on the funds drawn. Because the business handles its own credit control, discounting is usually cheaper than factoring. Exact pricing depends on turnover, sector and the quality of the sales ledger.
The bottom line
The right invoice discounting provider depends on your turnover, how much you value confidentiality and control, and whether you want a specialist, a bank or a relationship-led mutual behind you. Novuna Business Cash Flow is a practical first port of call for established B2B businesses, given its mix of an in-house facility and a whole-of-market comparison service, but Close Brothers, Bibby, HSBC and Skipton each bring something different to the table. As with any funding decision, it is worth comparing a few providers on advance rate, total cost and terms before committing.
This article is intended as general information only. It is not financial advice or a recommendation, and should not be relied upon when choosing a finance provider or facility. Businesses should take independent professional advice before entering into any invoice discounting agreement.
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