Best Invoice Finance for Small Business UK 2026

Published minimums vary widely. The single-invoice platform Hydr has no minimum at all, Skipton publishes a £100,000 floor, Bibby publishes none, and some larger providers sit well above small-business scale (Close Brothers £750,000, IGF over £5m). Ultimate Finance publishes no minimum and quotes per file. If your turnover is under £50,000, selective invoice finance (Hydr, Triver) has no minimum, you only fund the invoices you choose.

Yes, but the options narrow. Most UK providers prefer limited companies because a debenture can be registered at Companies House to secure the facility. Some independents, Ultimate Finance among them, consider sole traders case-by-case. If you're a sole trader, converting to a limited company before applying usually widens your options considerably.

The mainstream lenders within small-business reach do not publish a service charge: Skipton Business Finance (from £100,000 turnover) agrees it per facility, and Close Brothers (from £750,000) prices each agreement individually, so compare quotes. Below £100,000, single-invoice platforms such as Hydr charge flat per-invoice fees, which are often the more economical route at low volume.

A discount charge (a margin over Bank of England base rate) is charged separately on cash advanced. As an illustration, a 0.5% service charge on £200k turnover would be £1,000 a year (about £83 a month), before the discount charge.

Most providers ask for a personal guarantee on small facilities: our reviews found PGs usual at Ultimate Finance and standard on most Bibby facilities under £1 million, and bank-owned providers (HSBC, Lloyds, NatWest) generally require one for SME facilities. If avoiding a personal guarantee is a priority, state this when requesting quotes; some providers will consider a capped or waived guarantee for low-risk client profiles.

Ultimate Finance says it sets up a facility within one week. Close Brothers, Bibby and Skipton typically take around 5 working days; Aldermore says a few days to a few weeks. The fintechs (Hydr, Triver) advertise same-day in-principle decisions but require signed paperwork before funds release, so realistic end-to-end is 24-72 hours. Once the facility is set up, individual invoices are typically funded within 24 hours of submission.

With factoring, the finance provider manages your credit control and collects payment from your customers directly, your customers see they're paying the finance company. With invoice discounting, you keep credit control in-house and your customers may not know you're using finance (confidential discounting).

Factoring is typically easier to qualify for at small turnover. Discounting often requires higher turnover (Skipton publishes no threshold for it but says it has arranged it at £100,000 turnover; many others look for £500,000+) and a strong sales ledger administration.

Yes, on day-one trading with the right provider. Hydr is the clearest UK specialist for true selective invoice finance with no minimum turnover and day-one acceptance. Ultimate Finance also has appetite for startup and turnaround files, though it may require a personal guarantee. Major banks typically require 12 months trading history before offering invoice finance to limited companies.

We assessed 87 UK invoice finance providers across six criteria weighted for SME needs: minimum turnover, starting cost, advance rate, setup speed, contract flexibility, and startup acceptance. Each criterion is scored individually using publicly disclosed rates and direct provider research. Market Invoice is operated by Best Business Loans Ltd (company number 16833937) as an independent comparison; our introduction partner pays us a fixed fee for each business we introduce, whether or not a facility follows, but a provider that pays nothing appears in the same rankings with the same methodology.