Can Startups Get Invoice Finance?
Yes - from your very first invoice.
Unlike bank loans or overdrafts, invoice finance doesn't require trading history, profitability, or a proven track record. The provider is lending against your customers' ability to pay, not yours. If your first customer is the NHS, a FTSE 100 company, or an established business with good credit, you can get funded immediately.
Why Startups Get Approved
Think about it from the provider's perspective. You're a brand new recruitment agency. You've placed a senior developer at Barclays on a 6-month contract at £600/day. Barclays is going to pay that invoice - they're a £25 billion bank. Whether your company is 1 day old or 10 years old is irrelevant to whether Barclays pays. That's why startups with strong end clients get approved easily.
What You Need
- B2B invoices: You must invoice other businesses (not consumers) on credit terms. Cash sales, retail, or B2C businesses can't use invoice finance.
- Creditworthy customers: Your customers need to have reasonable credit. Blue-chip, government, or established businesses are ideal. If your only customer is another startup, approval is harder.
- A real contract or purchase order: Evidence that the work is genuine and agreed.
- A UK registered company: Sole traders can sometimes qualify but limited companies are strongly preferred.
What You Don't Need
- Trading history (day one is fine)
- Audited accounts
- Profitability
- Good personal credit (helpful but not essential)
- Property or assets as security
Which Providers Accept Day-One Startups?
| Provider | Accepts Startups? | Min Turnover | Notes |
|---|---|---|---|
| Bibby | Yes - day one | £50k projected | Back-office support available |
| Ultimate Finance | Yes - day one | £50k projected | Fastest setup (3 days) |
| IGF | Yes | £50k projected | Flexible on difficult cases |
| Close Brothers | Case by case | £50k | Prefers some trading history |
| High street banks | Generally no | £250k-£500k | Want 2+ years accounts |
The Startup Recruitment Agency Example
This is the most common startup use case. You leave a recruitment agency to start your own. You have relationships, you have candidates, and you win your first placement within weeks. The problem: you need to pay the contractor £2,500 on Friday, but the client pays you £3,500 on 30-day terms.
With invoice finance, you submit the first timesheet on Monday, receive £2,975 (85% of £3,500) by Tuesday, and run payroll on Friday. From week two onwards, the facility is self-funding - each week's timesheets fund the next week's payroll.
Thousands of UK recruitment agencies started exactly this way. It's the standard operating model, not a niche use case.
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.
Last reviewed: 27 May 2026