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Get my 3 quotes →Market Invoice compares the UK providers that fit this need, and you can get 3 free quotes through eCapital, our introduction partner. Selective invoice finance (spot factoring) has no minimum turnover requirement - you can fund individual invoices as needed. For very small businesses, Triver offers micro-business facilities, and Sonovate serves recruitment startups of any size. Below £50,000 annual turnover, selective factoring is typically the only option, as most whole-turnover providers require at least £50k.
Selective invoice finance has no minimum turnover. You fund individual invoices as needed. For whole-turnover facilities, the lowest minimum is £50,000 (Bibby, Ultimate Finance). More detail + scope
This page covers
No minimum turnover invoice finance options including selective, spot factoring, and micro-business providers
Not covered here
Whole-turnover facility comparisons, large business solutions, asset finance
Options for Very Small Businesses
| Provider / Type | Min Turnover | Type | Cost | Contract |
|---|---|---|---|---|
| Selective / spot factoring | None | Per-invoice | 1-3% | No lock-in |
| Triver | None | Micro-business | Variable | Flexible |
| Sonovate | None (recruitment) | Recruitment only | Variable | Flexible |
| Bibby / Ultimate | Not published | Whole-turnover | Not published | 12 months typical |
| Close Brothers / Skipton | £750k / £100k | Whole-turnover | Not published | 12 months typical |
When Selective Makes Sense
Selective invoice finance is ideal if your turnover is below £50k, you only need occasional funding, or you want to test invoice finance before committing to a whole-turnover facility. You pick which invoices to fund, pay only when you use it, and there's no long-term contract. The per-invoice cost is higher (1-3% vs 0.5-1.5%), but the total cost can be lower if you only fund a few invoices per month.
Growing Into Whole-Turnover
Many businesses start with selective factoring and graduate to a whole-turnover facility once their revenue grows past £50,000. At that point, the per-invoice cost drops significantly (0.5-1.5% vs 1-3%), and you get access to dedicated account management, bad debt protection, and credit control support. Start small, prove the model works, then scale up.
If you're close to the £50k threshold, speak to Bibby or Ultimate Finance - they may offer flexible entry terms to onboard you before you hit the minimum.
Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.
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