Purchase Order Finance UK 2026

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

Purchase Order (PO) finance lets UK businesses fund supplier costs against a confirmed customer purchase order, before goods are delivered or an invoice is raised. The lender pays the supplier directly (or via a back-to-back letter of credit), the goods are delivered to the customer, the customer pays the invoice, and the lender takes its principal plus a fee quoted per deal. Used by importers, manufacturers and distributors who win large orders that exceed working capital. Specialist trade finance lenders arrange it, often through brokers such as Trade Finance Global. Often combined with invoice finance, which funds the customer invoice once the goods are delivered, to cover the entire order-to-cash cycle.

What this page covers

This page covers

purchase order finance UK: how it works, costs, comparison with invoice finance, best providers

Not covered here

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

UK providers worth knowing

Optimum Finance

Invoice finance, now part of eCapital; no PO product listed

Fee from Not published · Min turnover Not published

Time Finance

Invoice finance for the delivered invoice; no PO product listed

Fee from 1.5-3% service charge · Min turnover £250k

Related finance

Purchase order finance often runs alongside pre-shipment finance and contract finance, or import finance where the goods come from overseas.

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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Before you enquire

The questions most people ask at this point, answered before you fill anything in.

Will I have to give a personal guarantee?

Often, though not always, and it is usually capped rather than unlimited. Invoice finance is secured on the ledger, so guarantees here tend to be narrower than on unsecured lending, and the wording varies more between funders than the headline rate does.

How security works

How quickly can it be in place?

A new facility is usually a matter of weeks rather than days, and the security paperwork sets the pace more than the credit decision does. Switching from an existing funder takes longer, because the outgoing lender has to release or rank its security.

What sets the timetable

General information about how the market normally works, not advice, an offer or a quote. Market Invoice is a comparison and introducer service, not a lender.

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Purchase Order Finance UK FAQ

What is purchase order finance?

A UK working capital facility that pays your supplier directly against a confirmed customer purchase order, before you deliver goods or raise an invoice. The lender takes risk on the underlying transaction, repaid when the customer pays.

How much can I get with PO finance?

Typically 70-100% of supplier costs. Some providers fund 100% of the invoice value to suppliers; others fund 70-80% with the importer covering the gap. Limits depend on supplier and customer credit profiles, transaction history, and end-customer payment terms.

How much does PO finance cost?

A fee on the funded amount per transaction cycle (order to payment), quoted per deal, plus any arrangement fee on setup. The effective annualised rate depends on the cycle length: as an illustration, a 3% fee on a 90-day cycle equals roughly 12% APR.

PO finance vs invoice finance UK?

PO finance funds the upstream (supplier) side of a transaction, before you've delivered or invoiced. Invoice finance funds the downstream side, after you've invoiced the customer. Many UK businesses use both: PO finance to pay the supplier, then invoice finance against the customer invoice once delivered. Combined, they fund the entire order-to-cash cycle.

Best UK PO finance providers?

Few UK lenders publish a PO finance product or its terms. Bibby Financial Services lists purchase order and pre-shipment trade finance among its products, and Trade Finance Global brokers PO and trade finance across multiple lenders. For the invoice once goods are delivered, most invoice finance providers can quote. Get at least 2 quotes.

Can I get PO finance as a startup?

Hard but not impossible. Most PO finance providers require 12+ months of trading and audited or filed accounts. A creditworthy end-customer and director experience help. Triver and Hydr offer related selective spot factoring on first invoices once delivery is complete, which can be combined with supplier credit terms to cover the gap.