Our picks for the best UK invoice factoring and invoice discounting companies in 2026, helping businesses unlock cash tied up in unpaid invoices.
Last updated: April 2026. Written by the Lendus editorial team.
Invoice factoring lets UK businesses access up to 90% of the value of unpaid invoices immediately, rather than waiting 30–90 days for customers to pay. It's one of the most effective cash flow tools for B2B businesses, and the UK invoice finance market supports over £300bn of client turnover annually.
Bibby Financial Services is the UK's largest independent invoice finance provider, serving over 8,000 businesses with dedicated account managers who actively chase your debtors on your behalf. Its factoring product includes credit control as standard, making it ideal for businesses that want to outsource the collections function entirely. It lends across a wide range of sectors with no industry exclusions.
Close Brothers Invoice Finance offers confidential invoice discounting where your customers never know a third party is involved — ideal for businesses that want to maintain direct debtor relationships. Its sector specialists understand industries from transport to manufacturing, and underwriting decisions are made locally rather than centrally. The reporting suite is detailed and easy to use.
Ultimate Finance has built a reputation for saying yes where the clearing banks say no, with a flexible approach to invoice finance that suits fast-growing businesses with evolving debtor books. Its dedicated relationship managers take a hands-on approach, and the facility grows automatically as your turnover increases. Minimum turnover requirements are lower than most traditional providers.
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Check Eligibility| Lender | Best For | Rates | Amount | Speed | Rating |
|---|---|---|---|---|---|
| Bibby Financial Services | Best for SMEs needing full credit control | Service charge from 0.5% of turnover; discount rate from 2% over base | £50,000 – £10,000,000+ ledger | Within 24 hours of setup | 4.2/5 |
| Close Brothers Invoice Finance | Best for confidential invoice discounting | Discount rate from 1.5% over base; service charge from 0.2% | £500,000+ annual turnover | Within 48 hours of setup | 4/5 |
| Ultimate Finance | Best for growing businesses needing flexibility | Service charge from 0.75%; discount rate from 2.5% over base | £100,000+ annual turnover | Within 48 hours of setup | 4.4/5 |
| Aldermore Bank Invoice Finance | Best for established businesses with complex debtor books | Service charge from 0.4%; discount rate from 1.75% over base | £1,000,000+ annual turnover | 3–5 business days to set up | 4.1/5 |
| MarketFinance (formerly MarketInvoice) | Best for selective, on-demand invoice finance | From 1.5% per invoice funded | £10,000 – £10,000,000 per invoice | Within 24 hours | 4.3/5 |
We evaluated invoice factoring providers on advance rates, fee transparency (service charge plus discount charge), minimum annual turnover requirements, speed of initial funding, whether the service is disclosed or confidential, quality of credit control support, and FCA authorisation. We also considered the breadth of sectors served and how providers handle bad debt protection.
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