When customers take 30, 60, or even 90 days to pay, the gap between completing work and receiving payment puts real pressure on cash flow. Invoice finance closes that gap – giving businesses access to the value of their unpaid invoices without waiting for customers to settle their accounts.
The UK market now offers a wide range of options, from large independent specialists to digital platforms and mutual-backed providers. Below are five worth considering.
1. Novuna Business Cash Flow
Novuna Business Cash Flow is part of Mitsubishi HC Capital UK PLC, one of the UK’s largest leasing and finance groups. Its proposition covers invoice factoring, invoice discounting, and selective invoice finance – the latter allowing businesses to finance individual invoices rather than their entire debtor book.
Its invoice finance for small business proposition reflects the realities of smaller ledgers, including selective finance options that allow companies to dip in and out of the facility as cash flow needs dictate. Novuna Business Cash Flow also has a dedicated business loans arm, meaning clients can explore a broader range of solutions within the same relationship.
Best for:
- Established SMEs looking for a relationship-led facility backed by a major financial group
- Businesses that want selective invoice finance rather than a whole-ledger commitment
- Companies that may also need asset finance or business loans under a single provider relationship
- Sectors including manufacturing, logistics, recruitment, and professional services
2. Bibby Financial Services
Part of the Bibby Line Group (founded 1807), Bibby Financial Services was established in 1982 and is today the UK’s largest independent invoice finance provider. It has dedicated teams for transport and logistics, recruitment, construction, and professional services, with construction finance capability bolstered by its acquisition of the Aldermore Working Capital Finance division in 2023.
Bibby offers factoring, invoice discounting, and confidential factoring. Advance rates of up to 85% of invoice value are usually available within 24 hours of setting up a facility.
Best for:
- Small businesses in transport, logistics, recruitment, construction, or professional services
- Businesses that want to outsource credit control, including via confidential factoring
- Those that prefer a regional, relationship-managed service with a long track record
3. Kriya (formerly MarketFinance)
Kriya has operated as part of Allica Bank since October 2025. Its selective invoice finance offering allows businesses to upload individual invoices for funding without committing to a whole-ledger facility. Eligibility requires a UK-registered limited company or LLP with a minimum annual turnover of £100,000. Kriya can advance up to 90% of invoice value, typically within 24 hours of invoice verification.
Best for:
- Businesses with £100,000+ turnover wanting to fund individual invoices
- Companies using Xero, QuickBooks, or Sage that want a digital-first process
- Those that need fast access to funds with no long-term commitment
4. Skipton Business Finance
Backed by Skipton Building Society, Skipton Business Finance has been operating for nearly 25 years and reported record profit and lending growth in 2025. Its Skipton Select product is an interest-free factoring facility with a flat service charge (2%–3.5% of factored turnover) and no discount rate on drawn funds. LedgerLite provides access to up to 50% of a monthly sales ledger with a simpler structure for businesses wanting a flexible entry point. Each client is assigned a dedicated relationship manager.
Best for:
- Businesses wanting a transparent, predictable fee structure with no daily interest (Skipton Select)
- Those looking for a flexible entry point into invoice finance (LedgerLite)
- Companies that value mutual backing and a dedicated relationship manager
5. Close Brothers Invoice Finance
Part of Close Brothers Group, a FTSE 250-listed merchant banking group founded in 1878, Close Brothers offers invoice factoring, confidential invoice discounting, asset-based lending, and bad debt protection. Its IDeal platform transfers the cash value of new invoices to clients’ accounts the moment an invoice is raised. In August 2025, it launched a dedicated Scale Up team handling facilities up to £350,000 for start-ups and smaller SMEs.
Best for:
- Growing businesses looking for a dedicated invoice finance specialist
- Start-ups and smaller SMEs seeking facilities up to £350,000
- Those that want bad debt protection alongside their invoice finance facility
Key questions to ask any provider
- What is the minimum turnover required? Some providers require £100,000–£250,000 in annual invoicing.
- Whole-ledger or selective? Whole-ledger facilities require all invoices to be financed; selective facilities allow individual invoice funding.
- What is the total cost? Ask for a worked example – not just the headline rate.
- Who manages credit control? Under factoring, the provider contacts your customers. Under discounting, you retain control.
- What are the exit terms? Check for minimum notice periods or early termination charges.
Conclusion
The five providers above cover a range of approaches – from large independent specialists to digital platforms and mutual-backed providers with distinctive fee structures. The right choice depends on your turnover, sector, debtor profile, and how much control you want to retain over customer relationships. Most providers will produce a worked cost illustration without obligation.
The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any finance decisions. Appropriate independent advice should be obtained before making any such decision. London Loves Business bears no responsibility for any gains or losses.
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