Charity and Non-Profit Invoice Finance UK 2026

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Market Invoice is an independent UK invoice finance comparison site that ranks 87 UK invoice finance providers.

UK registered charities, CICs and non-profits with grant or contract receivables can use invoice finance to bridge cashflow gaps between funder commitment and actual payment (often weeks to months on government and Lottery grants, and longer on some trust grants). Charity-sector lenders (Charity Bank, Unity Trust Bank, Triodos Bank) and mainstream providers such as Bibby and Skipton understand trustee governance, restricted vs unrestricted funds, and Charity Commission disclosure requirements. Invoice finance typically advances 80 to 90 percent of confirmed service contract receivables, with fees quoted per facility. Trustee approval typically required; document the rationale in trustee minutes.

What this page covers

This page covers

invoice finance for UK charities and non-profits: Charity Commission disclosure, trustee approval, trading subsidiary, restricted fund handling

Not covered here

General invoice finance education (see /guides/), individual provider reviews (see /providers/), full pricing breakdown (see /guides/costs/)

UK providers worth knowing

ProviderFee fromMin turnoverWhy it fits
Bibby Financial ServicesNot publishedNot publishedMainstream charity finance experience
Skipton Business FinanceNot published£100kMid-market charity operations
IGF Invoice FinanceNot published£5mBusinesses over £5m turnover (asset-based lending)
AldermoreNot published£750kConfidential discounting for larger trading subsidiaries
HydrVariableNo minSelective spot factoring on individual large grant receivables
AP

Adam Parker

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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Charity Invoice Finance UK FAQ

Can UK charities get invoice finance?

Yes. Charities with confirmed grant receivables, service contract income (NHS, local authority, corporate), or trading income via a trading subsidiary qualify for invoice finance. Typical market terms apply (advances of around 80-90%, fees quoted per facility). Trustee approval typically required; document in trustee minutes.

Best charity-aware invoice finance UK?

Charity Bank, Unity Trust Bank and Triodos Bank are charity-sector lenders with deep governance understanding, though their core products are loans, so ask whether invoice-style finance is available. Mainstream invoice finance providers (Bibby, Skipton, Aldermore, IGF) serve charities and trading subsidiaries on normal underwriting. The choice depends on size and complexity: dedicated charity banks for smaller or governance-sensitive cases, mainstream invoice finance for larger or commercial-style operations.

Charity Commission disclosure requirements?

Use of invoice finance must be disclosed in your annual accounts (under SORP). Trustee minutes should document the rationale (cashflow gap, alternative options considered, impact assessment). Restricted fund receivables can be financed but the advance must be applied to restricted purposes. Confidential discounting is preferred where the funder might misinterpret factoring as financial distress.

Trading subsidiary invoice finance?

Most charity trading subsidiaries (selling Christmas cards, charity shops, training services, consulting) operate as standard limited companies and qualify for normal invoice finance. The trading subsidiary's invoice finance facility is separate from the parent charity's affairs. Typical market terms apply.

Restricted fund receivables: can I finance these?

Yes but the advance must be applied to the restricted purpose. If a funder grants £100k for a specific programme, the invoice finance advance against that receivable can only be spent on that programme. Mainstream lenders may not understand restricted fund mechanics; charity-specialist lenders (Charity Bank, Unity Trust) do. Document restricted purpose alignment in trustee minutes.

Cost of charity invoice finance UK?

Broadly the same as comparable commercial SMEs: a service charge (most providers, including Skipton, quote it per facility) plus a discount charge set as a margin over Bank of England base rate. Most providers quote per facility. The cost is offset by the cashflow benefit (programmes can run on time rather than waiting for grant payment delays).