Written by Matt Reed Reviewed by Tatiana Lebreton Updated on 3 June 2026 On this page The Best Invoice Financing Companies: Overview 1. Kriya 2. Growth Lending 3. Skipton Business Finance 4. Metro Bank 5. RBS FacFlow How Much Does Invoice Financing Cost? Invoice Financing Eligibility Criteria How Did We Research the Best Invoice Finance Companies? Verdict FAQs Expand We may receive a commission from our partners if you click on a link to review or purchase a product or service. Learn More. Based on our desk-based analysis of pricing, speed, features, eligibility and customer feedback, Kriya is the best invoice financing company thanks to its 24-hour funding, flexible “pay-as-you-go” model and deep integrations with modern accounting software.This makes it particularly well-suited to high-growth SMEs and ecommerce firms that need rapid, scalable cash flow.That said, not every business needs speed above all else. Our second pick, Growth Lending, stands out for larger or more complex SMEs — especially those expanding internationally or managing high-value contracts.Ultimately, the right provider depends on whether you prioritise speed and flexibility, or scale and funding depth, something we’ve reflected throughout our research-led rankings below. Key Takeaways Key factorInsightCredit impactInvoice finance is asset-based rather than debt, so it’s unlikely to harm your credit score and can improve cash flow reliabilityClient concentrationIf one client dominates your revenue, specialist lenders like Growth Lending offer more flexibility than most banksSpeed of accessDigital platforms like Kriya prioritise speed, while banks like RBS FacFlow focus on stability and scaleConfidentialityMost modern providers, including Metro Bank, offer confidential facilities as standardStartup accessibilityProviders like Skipton Business Finance are more open to newer and smaller SMEs, typically from around £250,000 turnoverProvider positioningKriya suits speed, Growth Lending suits scale, and Skipton Business Finance focuses on accessibility for smaller SMEs How Did We Research the Best Invoice Financing Companies? We conducted desk-based research to compare leading UK invoice finance providers for 2026, focusing only on invoice financing, invoice discounting and invoice factoring providers for UK SMEs.Our evaluation was based on five core criteria:Pricing and transparency: Fees, hidden costs and overall valueSpeed of funding: How quickly cash is released after onboardingFeatures and technology: Integrations, automation and platform toolsEligibility and flexibility: Requirements and SME accessibilityCustomer experience and reputation: support quality and user reviewsRead our full methodology below. The Best Invoice Financing Companies: OverviewBased on our first-hand research, the best invoice finance companies in 2026 include:Kriya – Best for digital-first, high-growth SMEs that want fast, flexible fundingGrowth Lending – Best for international expansion and large, bespoke facilitiesSkipton Business Finance – Best for startups and newer SMEs needing accessible fundingMetro Bank – Best for flexible, low-commitment invoice financeRBS FacFlow – Best for established, high-growth businesses needing structured funding 0 out of 0 backward forward Key features Advance rate Service fee Digital-First Scaling Kriya International Expansion Growth Lending New and Startup SMEs Skipton Business Finance Flexibility and Low Risk Metro Bank Established High-Growth RBS FacFlow Funding speed: Under 24 hoursScale: Bank-grade capitalFlex: No long contracts Funding speed: 48-hour releaseGrowth: High-limit VC debtGlobal: Multi-currency help Funding speed: 24 to 48 hoursCost: Interest-free optionsSupport: Local managers Funding speed: Next-day accessExit: 28-day notice periodService: Direct UK support Funding speed: Under 24 hoursDigital: 100% paperlessTrust: NatWest backing Up to 90% Up to 90% Up to 90% Up to 90% Up to 90% Custom Custom Custom Custom Custom 1. Kriya (an Allica Bank Company): Best for Digital-First ScalingFunding speed: Under 24 hoursAdvance rate: Up to 90%Kriya is a leading UK invoice financing provider backed by Allica Bank, built for modern SMEs that prioritise speed, automation and flexibility. Its fully digital platform is designed to integrate seamlessly with cloud accounting tools, making it particularly well-suited to high-growth businesses with fast-moving cash flow needs. Kriya Service fee Custom Our 2026 Verdict Kriya remains the premier choice for UK SMEs facing the "payroll panic" or sudden supply chain shifts of 2026. Its primary value lies in its 24-hour funding cycle, advancing up to 90% of invoice value almost the moment a job is completed. Following its 2025 integration into Allica Bank, Kriya has transitioned from a standalone fintech into a bank-backed powerhouse, providing the balance-sheet stability (over £4bn in total credit advanced) that modern business owners require to mitigate risk in a volatile economy. Read more + Read less - Strengths Highly rated by its customers Back office platform is easy to use Relatively low prerequisites in terms of your annual turnover and trading history Good customer support Weaknesses Confidential invoice discounting is only available if you use one of Kriya's supported accountancy software packages What are Kriya’s key features and benefits?AI-driven automation and integrationsKriya syncs directly with platforms like Xero and Sage, using AI-powered reconciliation to auto-match payments and reduce manual admin. This helps finance teams scale output without increasing headcounts.Fast, flexible fundingWith a pay-as-you-go model, you can finance individual invoices rather than committing your full ledger. Funding can be accessed within 24 hours, making it ideal for managing short-term cash flow gaps.Transparent pricingService fees typically range from 1%–3%, with no hidden costs, retainers or exit penalties. This makes it easier to protect margins and forecast costs accurately.B2B PayLater functionalityKriya’s embedded PayLater solution allows your customers to spread payments over 30, 60 or 90 days, while you receive funds upfront. This can significantly increase order volumes and improve customer conversion rates.Accessible eligibility criteriaAvailable to UK limited companies and LLPs with at least one year of trading and more than £100,000 turnover, making it accessible to a wide range of growing SMEs.You get to set your payment terms with easy, intuitive box-filling inside Kriya. Source: KriyaWhere could Kriya improve?Limited suitability for very large facilitiesKriya is best suited to SMEs rather than enterprises needing multi-million-pound, complex funding structures.Selective finance may cost more long-termWhile flexible, selectively financing invoices can be more expensive over time compared with whole-ledger agreements with lower rates.Less human-led supportAs a digital-first platform, businesses looking for highly hands-on, relationship-based support may prefer more traditional lenders.Once an invoice is paid, Kriya will reconcile and send over the balance, which you can track in the system. Source: KriyaWhat type of business is Kriya best for?Kriya is best suited to businesses with long payment cycles, high-value invoices, and a need to unlock cash tied up in receivables, while B2C businesses and early-stage start-ups would be better off opting for an alternative.Kriya is ideal for:B2B suppliers selling to large buyers – If you’re working with bigger clients (including corporate or government entities) and offering 30–90 day terms, Kriya will be a great fit. It allows you to unlock up to 90% of invoice value quickly while also enabling you to take on larger contracts without cash flow strain.High-growth businesses scaling revenue quickly – Kriya is particularly strong for companies actively trying to grow, whether that’s hiring, investing in operations or increasing order volume. Its model is designed to help you sign larger orders with bigger clients and reinvest immediately.Businesses offering flexible payment terms – If offering trade credit is key to your business, Kriya fits especially well. Its broader platform (including PayLater) is designed to help suppliers increase conversion and order size by giving buyers more flexibility, while still getting paid upfront.Kriya is not ideal for:B2C businesses – If you primarily sell directly to individual customers rather than invoicing other businesses, Kriya’s model won’t be relevant, as it relies on outstanding B2B invoices to provide funding.Early-stage startups with little or no trading history – Businesses that haven’t yet built up consistent revenue or a track record of invoicing may struggle to qualify for Kriya, making other forms of startup funding more suitable.Asset-heavy businesses needing long-term funding – If your business requires large upfront investment in equipment, property or infrastructure, and you’re looking for a longer-term loan rather than short-term cash flow support, invoice finance providers like Kriya are unlikely to be the best fit. 2. Growth Lending: Best for International ExpansionFunding speed: 48 hoursAdvance rate: Up to 90%Growth Lending is a specialist UK invoice finance provider designed for established SMEs with complex funding needs, particularly those trading internationally or requiring larger, bespoke facilities. With funding lines up to £10m and multi-currency support, it’s ideal for businesses that have outgrown traditional factoring and need flexible capital. Growth Lending Service fee Custom Our 2026 Verdict Growth Lending remains a specialist powerhouse for 2026, specifically targeting UK businesses that have outgrown traditional factoring but require more flexibility than a high-street bank. Its primary value in the current market is its ability to support complex, high-limit facilities of up to £10m for firms with international debtors.For UK exporters navigating the global supply chain shifts of 2026, Growth Lending provides a vital bridge, advancing up to 90% of invoice value across multiple currencies. This ensures that a business’ domestic growth isn't hampered by the longer 60-to-90-day payment cycles common in overseas trade, allowing for immediate reinvestment into inventory and workforce expansion. Read more + Read less - Strengths Bespoke rates Industry-specific options available for suppliers A range of online articles help to demystify some of the more complex invoice finance jargon floating around Weaknesses Unless you request a quote directly, it’s tough to get even a ballpark idea of what you can expect to pay What are Growth Lending’s key features and benefits?High-limit, bespoke funding facilitiesGrowth Lending offers tailored invoice finance solutions with facilities up to £10m, making it a strong fit for larger SMEs that need more headroom than most fintech lenders can provide.Multi-currency invoice discountingWith Growth Lending, you can fund invoices in GBP, EUR and USD as standard, allowing you to trade internationally without being slowed down by constant currency conversion.Up to 90% advance ratesAs with other providers, like Kriya and Skipton Business Finance, businesses can unlock a significant portion of invoice value upfront, helping maintain cash flow despite long international payment cycles.Support for international expansionDesigned with exporters in mind, Growth Lending enables businesses to reinvest quickly into stock, staffing and operations while waiting on overseas payments.Fund-through capability for M&A activityThe lender can combine invoice finance with revolving credit and mezzanine debt, creating a structured funding package for management buyouts and acquisitions.Human-led underwriting for complex contractsUnlike automated lenders, Growth Lending uses expert underwriting to assess businesses with non-standard invoices, such as SaaS or milestone-based billing.Non-dilutive growth capitalBy leveraging your sales ledger rather than equity, Growth Lending allows founders to scale or transition ownership without giving up control.When logging into Growth Lending's web app, you'll first see this login screen. Source: Expert MarketWhere could Growth Lending improve?Limited pricing transparencyCosts are bespoke and not publicly disclosed, making it difficult to benchmark pricing without going through a full quote process.Not suitable for early-stage businessesWith typical requirements around £1m+ turnover and strong financials, startups and smaller SMEs are unlikely to qualify.More complex application processCompared with digital-first lenders, applying often requires detailed financials, business plans and evidence of a robust finance function.Less suited to simple funding needsBusinesses looking for quick, low-value or short-term funding may find Growth Lending’s offering more complex than necessary.Primarily focused on B2B and larger dealsCompanies without high-quality debtors or those operating outside a clear B2B model may struggle to access their facilities.What type of business is Growth Lending best for?We recommend Growth Lending for established SMEs with international ambitions and complex funding requirements. However, B2C businesses, domestic businesses and early-stage startups won’t be as well aligned with its funding model.Growth Lending is ideal for:Export-focused businesses – If you regularly invoice overseas clients in multiple currencies and deal with 60–90 day payment terms, Growth Lending’s multi-currency facilities will be useful in smoothing cash flow.Established SMEs that make over £1m annually – Businesses with a proven trading history and strong debtor book are well positioned to access Growth Lending’s higher funding limits and more tailored structures, making it a better deal than most competitors overall.Companies planning acquisitions – If you’re looking to fund an MBO or acquisition without giving up equity, Growth Lending’s ability to combine invoice finance with growth debt makes it a strong strategic fit.Growth Lending is not ideal for:Startups and early-stage businesses – Without consistent revenue, strong financials or a track record of invoicing, most newer businesses won’t meet the eligibility criteria for Growth Lending.Domestic-only SMEs with simpler funding needs – If you exclusively operate in the UK and are just interested in straightforward, short-term cash flow support, Growth Lending may be more complex than necessary.B2C or low-invoice-volume businesses – Companies that don’t rely on invoicing other businesses or don’t have a steady stream of receivables won’t be a good fit for Growth Lending as it relies on a steady flow of B2B receivables. 3. Skipton Business Finance: Best for New and Startup SMEsFunding speed: 24 to 48 hoursAdvance rate: Up to 90%Skipton Business Finance prides itself on offering a more accessible approach to invoice finance, combining predictable costs with a hands-on, relationship-led service. This makes it a natural fit for small businesses after straightforward funding without unnecessary complexity. Skipton Business Finance Service fee Custom Our 2026 Verdict Skipton Business Finance continues to be a standout choice for new-start SMEs and smaller businesses that require financial certainty in the 2026 economic landscape. Its most compelling feature is Skipton Select, a unique interest-free factoring solution that replaces unpredictable monthly interest with a single, transparent service fee based on your turnover.This model is particularly valuable for businesses currently managing the 2.5% inflationary average, as it prevents borrowing costs from spiralling during periods of high base-rate volatility. By offering same-day funding once invoices are raised, Skipton provides the immediate cash injection needed to meet weekly payroll or secure raw materials without the debt-trap of traditional compound interest. Read more + Read less - Strengths Suitable for small businesses One of the few invoice financing companies to offer interest-free funding Fast finance No setup fees Weaknesses No Trustpilot reviews despite the company having a profile there What are Skipton Business Finance’s key features and benefits?Fast funding for working capital needsWhile not as fast as Kriya, Skipton Business Finance provides invoice funding within 24–48 hours, giving SMEs quick access to cash tied up in unpaid invoices to support payroll, suppliers and day-to-day operations.Interest-free, predictable cost structureThrough its Skipton Select model, businesses pay a fixed service fee (typically 2%–3.5% of turnover) instead of interest, helping maintain predictable financing costs even when rates fluctuate.High advance rates up to 90%Similar to other providers on this page, like Kriya and Growth Lending, businesses can unlock up to 90% of their invoice value upfront, improving liquidity while waiting for customer payments.Bad debt protection on eligible invoicesSkipton can protect up to 90% of invoice value if a customer becomes insolvent, reducing credit risk when businesses trade with larger or less predictable clients.Dedicated relationship manager supportEach Skipton Business Finance client is assigned a named relationship manager, providing direct access to decision-making support rather than relying on automated or call-centre-based service models.Flexible eligibility for smaller SMEs and startupsSkipton can support businesses from around £250,000 annual turnover, with a focus on invoice quality and growth potential, rather than purely historic financial performance.Skipton clearly explains the steps regarding invoice factoring on its website. Source: Skipton website via Expert MarketWhere could Skipton Business Finance improve?Less emphasis on automation and digital toolingCompared with newer fintech lenders, like Kriya and Growth Lending, Skipton offers fewer fully automated features, such as real-time dashboards, AI-driven forecasting or instant self-serve funding adjustments.Minimum turnover threshold excludes micro-businessesThe approximate £250,000 turnover entry point may exclude very early-stage startups that still require working capital support.Potentially higher cost for lower-risk borrowersWhile predictable, the 2%–3.5% fee structure may be less competitive than some fintech invoice finance platforms offering risk-adjusted pricing for stronger credit profiles.Slower product innovation cycleSkipton Business Finance’s relationship-led model prioritises stability, but can result in slower rollout of new digital features, compared with fully tech-driven competitors.You can also find a quote calculator on Skipton's website, allowing you to get some idea of how much cashflow you can release. Source: Skipton website via Expert MarketWhat type of business is Skipton Business Finance best for?Skipton Business Finance will be a great option for businesses that need fast, predictable invoice funding and prefer a relationship-led service model, while companies wanting fully automated fintech-style lending would be better off opting for an alternative.Skipton Business Finance is ideal for:Growing SMEs with regular B2B invoicing – Businesses issuing invoices to other companies with standard payment terms (30–90 days) benefit most from Skipton’s quick access to up to 90% of invoice value.Startups and small businesses with steady turnover (£250k+) – Firms with a consistent sales ledger can access funding even with limited trading history, as long as invoice quality is strong.Business owners who prefer human support – Businesses that value direct access to a dedicated relationship manager over automated systems fit well with Skipton’s service model.Skipton Business Finance is not ideal for:Micro-businesses and very early-stage startups – Firms that make under the £250,000 turnover level or without an established invoice history may not qualify for Skipton’s financing.Fully digital-first businesses – Companies expecting self-serve onboarding, instant automation, or AI-driven credit tools may find the model less advanced and would be better off going for a provider like Kriya or Growth Lending instead.Lowest-cost-focused borrowers – Businesses prioritising the absolute cheapest funding over service quality may find fintech providers more competitive. 4. Metro Bank: Best for Flexibility and Low RiskFunding speed: Under 24 hoursAdvance rate: Up to 90%Metro Bank offers a flexible, transparent approach to invoice finance. Its combination of rapid funding, simple pricing and short notice periods makes it a strong option for businesses operating in uncertain or fast-changing markets. Metro Bank Service fee Custom Our 2026 Verdict Metro Bank remains a standout choice for UK businesses that prioritise agility and avoid long-term financial commitments. In the unpredictable economic landscape of 2026, Metro Bank’s primary competitive advantage is its 28-day notice period, which allows you to exit or adjust your facility without the heavy penalty fees common among traditional high-street lenders.By providing an advance of up to 90% of your invoice value within 24 hours, Metro Bank ensures that your cash flow remains fluid enough to respond to immediate market opportunities or sudden supply chain shifts. Read more + Read less - Strengths Flexible contract terms No cancellation fees Funding within a day Simple pricing Weaknesses Upper limits on the funding you can access are more restrictive than those of other invoice finance providers here What are Metro Bank’s key features and benefits?28-day rolling contract with no exit feesUnlike many traditional lenders, Metro Bank allows you to leave or adjust your facility with just 28 days’ notice, giving you far greater financial flexibility.Fast funding within 24 hoursLike with leading fintechs such as Kriya, you can access up to 90% of your invoice value in as little as a day, helping you respond quickly to opportunities or cash flow gaps.Transparent, simple pricing structureCompared with more opaque lenders like Growth Lending, Metro Bank keeps costs easy to understand, with a single service fee for smaller facilities and typical charges of 1%–3% for larger agreements.Invoice It app for faster paymentsIts mobile invoicing tool lets you send invoices, automate reminders and include payment links, helping reduce payment times to as little as two days.Dedicated relationship managerEach client is assigned a named contact, ensuring more tailored support and human-led decision-making, compared with fully automated lenders.Metro Bank clearly lay out things in layman's terms, so it's as clear as possible for all levels of experience with invoice factoring. Source: Metro Bank website via Expert MarketWhere could Metro Bank improve?Lower maximum funding limits than specialist lendersCompared with providers like Growth Lending, which can offer multi-million-pound facilities, Metro Bank’s upper limits are more restrictive — making it less suitable for large-scale or international expansion.Less advanced tech than digital-first platformsWhile it does offer online tools, it doesn’t match the automation, integrations, or AI-driven workflows of fintech providers like Kriya, which are built for fully digital finance teams.Slower setup than some competitorsWith onboarding typically taking three to six weeks, it lags behind faster fintech lenders that can get businesses up and running in a matter of days.Still requires a stable trading historyDespite its flexibility, Metro Bank generally expects an established B2B sales ledger, which may exclude very early-stage startups compared with providers with a lower barrier to entry, like Skipton.What type of business is Metro Bank best for?Metro Bank is ideal for UK SMEs that value flexibility and fast access to cash, while rapidly growing businesses and large firms would be better off going for a scalable, high-limit provider like Kriya or Growth Lending.Metro Bank is ideal for:SMEs that want flexible, low-commitment funding – If you’re hesitant about locking into a 12–24 month contract, Metro Bank’s 28-day rolling agreement makes it a low-risk way to use invoice finance as needed.Businesses with short-term or fluctuating cash flow needs – Companies dealing with seasonal demand or unpredictable trading conditions benefit from the ability to scale funding up or down quickly.Small to mid-sized businesses needing up to £100,000 – Its Small Business Offering is particularly well suited to SMEs that want straightforward funding without the complexity of larger facilities.Metro Bank is not ideal for:Businesses needing multi-million-pound facilities – With more restrictive upper funding limits, larger businesses may outgrow Metro Bank and require a specialist lender.Businesses with complex or international funding needs – Companies trading across multiple currencies or requiring bespoke deal structures may find more tailored solutions elsewhere.Companies requiring immediate setup – With onboarding typically taking several weeks, Metro Bank won’t suit businesses that need funding in place almost instantly. 5. RBS FacFlow (NatWest): Best for Established BusinessesFunding speed: Under 24 hoursAdvance rate: Up to 90%Part of the NatWest Group, Royal Bank of Scotland (RBS) FacFlow, is a digitally integrated invoice finance solution designed for established businesses that want speed, visibility and institutional backing. RBS FacFlow Service fee Custom Our 2026 Verdict RBS FacFlow, part of the NatWest Group, is a stable and technologically integrated invoice financing solution available to UK SMEs in 2026. Its primary advantage is the instant link between your sales ledger and the wider NatWest digital ecosystem, which allows for rapid same-day drawdowns of up to 90% of your invoice value. For businesses already using FreeAgent or NatWest Business Banking, FacFlow provides a unified financial view that is essential for managing 2026's high inflationary average and maintaining a clear grip on operating liquidity. Read more + Read less - Strengths Comes with the backing of a renowned high street bank Excellent customer support, with a wealth of online help resources User-friendly back office portal makes it simple to view the status of your application and funding Weaknesses Quite a high annual turnover is required to access RBS’s invoice discounting facility What are RBS FacFlow’s key features and benefits?Same-day funding with up to 90% advance ratesFacFlow enables rapid drawdowns, often on the same day, helping businesses maintain liquidity without the delays typically associated with traditional lenders.Seamless integration with NatWest digital toolsIf you’re already using NatWest Business Banking or FreeAgent, FacFlow offers a unified financial view, making cash flow management far more streamlined than standalone providers.100% paperless, digital-first platformAll funding requests, credit control and account management are handled online, reducing admin and giving you 24/7 visibility over your sales ledger.Backed by a major high-street bankUnlike many fintech lenders, FacFlow benefits from the stability, data access and institutional expertise of NatWest — particularly valuable in volatile market conditions.Dedicated credit control and risk managementWith RBS FacFlow, a specialist team handles collections and performs in-depth credit checks on your customers, helping you avoid bad debt and maintain a healthier ledger.With FacFlow, you have clear summaries of all invoices and you can dive into the details of individual invoices easily. Source: RBSWhere could RBS FacFlow improve?Higher eligibility thresholds than many competitorsWith minimum turnover requirements typically starting at around £300,000, it’s less accessible than providers like Skipton for smaller or newer businesses.Less flexibility in invoice selectionUnlike fintechs, such as Kriya, that allow selective invoice funding, FacFlow generally requires you to commit your full sales ledger to the facility.Not ideal for early-stage startupsThe requirement for strong financial controls and consistent trading history means newer businesses may struggle to qualify.Potentially less agile than fintech alternativesWhile digitally focused, RBS FacFlow still operates within a traditional banking framework, which can feel less flexible compared with newer, fully automated platforms.What type of business is RBS FacFlow best for?RBS FacFlow is best suited to established, high-growth SMEs that want a structured, full-ledger funding solution backed by a major bank, with strong digital tools and integrated financial visibility. Smaller businesses and those wanting selective invoice funding may be better off opting for other providers.RBS FacFlow is ideal for:Established SMEs with turnover over £300,000 – Businesses with consistent revenue and a well-managed sales ledger are well-positioned to meet eligibility requirements and benefit from its structured facilities.High-growth, asset-light companies – Firms in sectors like SaaS, technology or recruitment can take advantage of NatWest’s IP-backed lending to access capital without relying on physical assets.Businesses already using NatWest or FreeAgent – If you’re within the NatWest ecosystem, FacFlow offers a seamless, integrated experience that simplifies cash flow management.RBS FacFlow is not ideal for:Startups and smaller SMEs – With minimum turnover thresholds and structured requirements, it’s less accessible than more flexible providers aimed at newer businesses.Businesses wanting selective invoice funding – Companies that prefer to fund individual invoices on demand may find FacFlow too rigid compared with fintech alternatives.Firms without strong internal finance processes – The platform expects solid ledger control and financial oversight, which may not suit businesses with less developed finance functions. How Much Does Invoice Financing Cost?Invoice financing typically costs between 0.5% and 5% of invoice value, depending on your provider, business risk, turnover and customer credit profile.In most cases, pricing is made up of two core charges:Discount fee (0.5%–5%)This is charged against the value of each invoice you fund. Larger, lower-risk invoices usually attract lower rates, while smaller or higher-risk invoices sit at the upper end of the range.Service fee (0.75%–2.5%)A separate ongoing fee charged weekly or monthly by some providers, typically calculated as a percentage of your annual turnover rather than individual invoices.Additional costsAdditional costs may apply for optional extras, with bad debt protection (non-recourse cover) being the most common. This protects you if a customer becomes insolvent and usually costs an extra 0.5%–2% of turnover.If you choose invoice discounting rather than factoring, costs are usually lower, typically around 0.2%–0.5%, because you retain responsibility for credit control. Invoice Financing Eligibility CriteriaBusinesses that are eligible for invoice financing are those with a B2B service model. In other words, your customers must be other businesses.Previously, invoice finance was only available to large, well-established businesses. Now, there’s a host of suppliers catering specifically to small businesses and startups.There’s also usually a requirement concerning your annual turnover — and even the least stringent of these typically comes to at least £50,000 per year.Skipton Business Finance is an example of a company that sports excellent deals for small businesses seeking fast, flexible (and, in some cases, interest-free) invoice finance.Other factors an invoice financing company may consider — and which may affect your eligibility for credit — involve your customer base and its creditworthiness.For instance, you may find it more difficult to be approved if you’re over-reliant on a single client. You’re also likely to struggle with eligibility for invoice finance if your customers aren’t considered to be trustworthy by a lender. How Did We Research the Best Invoice Finance Companies?To compare leading UK invoice financing providers for 2026, we carried out in-depth desk-based research. This included reviewing lender documentation, pricing information, eligibility criteria, platform features and verified customer feedback to ensure a consistent, like-for-like comparison across the market.We focused exclusively on invoice financing, invoice discounting and invoice factoring solutions for UK SMEs, ensuring all providers were assessed within the same product category. Each provider was evaluated against the following core criteria:Pricing and transparencyWe analysed fee structures, including service fees, discount rates, and any additional charges. Providers with clear pricing, minimal hidden costs, and flexible pay-as-you-go models scored higher.Speed of fundingWe compared how quickly businesses can access cash, from onboarding to invoice funding. Companies with faster approval times and same-day or 24-hour funding options were prioritized.Features and technologyWe assessed platform capabilities such as accounting integrations, automation tools, reporting dashboards and whether providers support selective or whole-ledger financing.Eligibility and flexibilityWe reviewed minimum turnover requirements, trading history rules and the accessibility of each provider for SMEs, startups and high-growth businesses.Customer experience and reputationWe considered support quality, onboarding experience and aggregated customer reviews from trusted platforms to gauge real-world reliability. Verdict: Which Provider Is Right for You? Our research shows that the market has moved toward deep sector specialisation, meaning the best provider for your business depends heavily on your industry’s specific 2026 challenges.Kriya remains our top overall recommendation for its balance of speed and Allica Bank security, making it ideal for high-growth firms that value digital-first operations.Metro Bank and Skipton Business Finance offer the best protection for smaller firms through flexible rolling contracts and interest-free fee structures.The key to success in 2026 is using these facilities to achieve Gold Award status under the Fair Payment Code. By ensuring you pay your own suppliers within 30 days, you build a reputational asset that is increasingly required to win major contracts.We’d suggest you avoid long-term contracts where possible and prioritise lenders that offer direct API integration with your accounting software to keep your administrative costs low. FAQs What happens if my customer disputes an invoice I’ve already financed? If a customer disputes an invoice (for example, by claiming the goods were damaged or the service wasn’t fully rendered) the financing company will typically “recourse” that invoice. This means they will remove that specific invoice from your “availability” (the amount of cash you can draw down) and ask you to repay the advance or offset it against future invoices.It is a common misconception that “non-recourse” financing protects you from disputes. In reality, non-recourse agreements usually only protect you against a customer’s formal insolvency. If the customer simply refuses to pay due to a disagreement, the financial responsibility still sits with your business. To manage this risk, ensure your credit control team (or the funder’s team) identifies disputes as early as possible to prevent sudden “buy-back” demands on your cash flow. How does invoice financing affect my business credit score? Generally, invoice financing is seen as a neutral or positive factor for your credit score. Unlike a traditional bank loan or overdraft, invoice financing is technically the sale of an asset (your accounts receivable) rather than the accumulation of debt.The application: Most lenders will perform a “hard search” on your business and its directors during the setup phase, which may cause a minor, temporary dip in your score.The long-term impact: By providing a consistent flow of working capital, invoice financing allows you to pay your own suppliers and HMRC on time. Consistent, on-time payments are the primary driver of a healthy credit rating.Shadow lending: Be aware that some traditional lenders may view a high reliance on invoice financing as a sign of thin cash reserves, but as long as the facility is managed well, it is widely accepted as a standard tool for growth. What are “concentration limits” and how do they affect my funding? A concentration limit is a cap that lenders place on how much of your total funding can be tied to a single customer. For example, if you have a £100,000 facility with a 30% concentration limit, the lender will only provide funding for up to £30,000 of invoices from any one client, even if that client is a blue-chip company.This is a major “gotcha” for businesses that have one or two dominant clients. If your largest customer accounts for 70% of your turnover, a standard facility might leave a huge portion of your invoices ineligible for funding. When comparing providers, always ask for their maximum concentration percentages. Our experience is that specialist lenders are often more flexible on these limits than high-street banks. Will customers know I’m using an invoice financing company? No, your customers don’t have to know that you’re using invoice financing. The best factoring companies — such as Skipton Business Finance — offer a completely confidential service and will chase payment under your company name and branding.Plus, while credit control is a key function of invoice factoring, it doesn’t have to be so with invoice discounting. Some invoice finance solutions won’t come with a credit control service at all. This means you’re free to chase your own invoices and retain autonomy over your hard-won customer relationships. If keeping factoring a secret from customers is important to you, be sure to mention this early on in your negotiations with providers. Written by: Matt Reed Senior Communications and Logistics Expert Matt Reed is a Senior Communications and Logistics Expert at Expert Market. Adept at evaluating products, he focuses mainly on assessing fleet management and business communication software. Matt began his career in technology publishing with Expert Reviews, where he spent several years putting the latest audio-related products and releases through their paces, revealing his findings in transparent, in-depth articles and guides. Holding a Master’s degree in Journalism from City, University of London, Matt is no stranger to diving into challenging topics and summarising them into practical, helpful information. Reviewed by: Tatiana Lebreton Senior Grow Online & Business Software Expert Tatiana is Expert Market's resident payments and online growth expert, specialising in (E)POS and merchant accounts, as well as website builders.