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Top 5 Invoice Factoring Companies in the UK (2024)

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Invoice factoring is a funding option that involves a company selling its invoices to a third party, known as a factoring company, at a discount. This allows the company to receive immediate cash flow instead of waiting for customers to pay their invoices in full.

If you are looking for invoice financing/factoring options, you have come to the right place. Our experts have shortlisted top invoice factoring providers in the UK for you. Let’s take a look:

What is a factoring company?

A factoring company pays a large portion of the invoices up-front (typically 70-90%) while the remaining amount is released (after fee deduction) once the invoice payments are collected in full. The factoring company takes responsibility for collecting payments from the customers.
The factoring company is usually an expert in collecting and managing invoice payments from customers so the business can focus more on high-leverage tasks.

Top Invoice Factoring Companies in the UK

Advance rate: Up to 90%.
Minimum turnover requirements: Not disclosed
Application process: Short online application.
Speed of Decision: This can be as soon as 24 hours.

Key Features:

  • Kriya is one of the most trusted invoice finance providers in the UK.
  • Kriya has funded invoices worth over £3.5 billion since its founding in 2011.
  • Kriya is backed by some of the industry’s biggest players such as Santander and British Business Bank.
  • Rated 4.8/5 on Trustpilot.

Summary

Kriya (formerly MarketFinance) was founded in 2011 and has financed over £3.5bn+ in invoice finance. Kriya is highly trusted by its customers with a rating of 4.8/5 on Trustpilot. Kriya is backed by some of the industry’s biggest players such as Santander and British Business Bank.
Kriya has a transparent fee structure that ranges from 0.2-3.5%. The application process is fast and easy to follow. Your business can get an advance of up to 90% of the invoice value within 24 hours.

Advance rate: Up to 100%.
Minimum turnover requirements: Not disclosed, but open to SMEs with under £300K turnover.
Application process: Online and telephone application.
Speed of Decision: You can get cash within 24 hours after setting up the agreement.

Key Features:

  • Rated 4.9/5 on Trust Pilot.
  • Bibby Financial Service (BFS) is one of the UK’s largest invoice financing companies, supporting over 9,000 businesses in the UK over the last 40 years. BFS manages more than £6bn in turnover each year on behalf of its clients.
  • BFS provides invoice factoring solutions to a range of industries like transport, manufacturing, construction, recruitment, wholesale, and more.
  • No minimum turnover to qualify for invoice factoring, therefore, BFS could be a suitable option for small businesses.
  • Winner of “Best Factor and Invoice Discounter” at the 2017 National Association of Commercial Finance Brokers Awards.

Eligibility:

  • Your business must be in trading for at least 6 months
  • You should have a capable management team

Summary

Bibby Financial Services was founded in 1982 and is one of the largest SME funders in the UK.

Its parent company Bibby Line Group is one of the oldest family-owned businesses in the UK, founded in 1807. The business has survived and grown by focusing on building strong relationships with customers, evidenced by a 93% client satisfaction rate. BFS supports SMEs across 9 countries throughout Europe and Asia, funding more than 9,000 businesses in 300 industry sectors worldwide. It manages more than £6bn in turnover each year on behalf of its clients.

BFS has impeccable customer service and customer satisfaction, as evidenced by their 4.9/5 rating on Trust Pilot. Customer service can be accessed by calling one of BFS’s 18 office locations in the UK within UK business hours. The service also includes email, chat support via the website, and access to a dedicated advisor.

Bibby Financial Services offers a full range of products, including Invoice Factoring and Invoice Discounting. Bad Debt Protection is also available.

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Advance rate: Up to 90%.
Minimum turnover requirements: £50,000 per year.
Application process: Online quote and telephone.
Speed of Decision: Can be as little as 24 hours.


Key Features:

  • 4.8/5 rating on Feefo.
  • No contractual requirements, you can start with a 6-month trial, then a 6-month rolling contract.
  • You get a dedicated Relationship Management team to cater to your needs.
  • Transparent and simple fee structure.
  • Winner of Best Direct Personal Loan Provider by YourMoney.com & Customer Service Champion in the British Bank Awards.
  • Provides various invoice financing solutions including invoice discounting, selective invoice finance, and more.

Summary

Novuna (formerly Hitachi Capital) is one of the UK’s leading providers of retail point-of-sale finance, working with over 3,000 retailers from high-street brand names to niche online e-commerce stores, providing fast, flexible finance solutions.

One of Novuna’s greatest strengths is its customer service evidenced by its awards of Best Direct Personal Loan Provider by YourMoney.com & Customer Service Champion in the British Bank Awards. You also have a dedicated Relationship Management team available to visit your offices and review your situation. Telephone and email support are also available during UK business hours.

Novuna offers a complete range of invoice finance products, including:

  • Invoice Factoring, where you can receive up to 90% of the invoice amount within 24 hours.
  • Confidential Invoice Discounting is available from Novuna for businesses with a turnover of £250,000 or more.
  • Selective invoice financing, where you can pick and choose which invoices you want to finance or factor.

Advance rate: Up to 90%. Can be 100% with Liquidity Plus.
Minimum turnover requirements: £500k per year.
Application process: Phone or email.
Speed of Decision: Not disclosed.

Key Features:

  • Winners of Award for Best Asset Based Lender and Highly Commended for Best Factoring & Invoice Discounting Provider.
  • Access to IDeal, a real-time invoice discounting platform, which offers seamless integration with over 285 accounting systems, including Oracle, Sage, and QuickBooks.
  • Wide range of invoice finance products with valuable add-ons, like Liquidity Plus, which enables businesses to get 100% value of an invoice when an immediate cash injection is needed.

Summary

Close Brothers Invoice Finance is part of the Close Brothers Group, one of the leading merchant banking groups in the UK. The firm is focused on medium to large-scale businesses, so it might not be the best option for SMEs for invoice financing. As a result of this enterprise focus, Close Brothers adopts a fee structure that is bespoke to your business, with fees only being disclosed when the financing is arranged.

While working with Close Brothers, you get comprehensive customer support, with a dedicated Client Manager with regular face-to-face meetings, phone calls, or emails are available upon request.

Close Brothers’ offering is the IDeal platform. It also automatically reconciles incoming factored payments with your existing invoices, via its integration with over 285 accountancy systems like QuickBooks, Oracle, etc. Close Brother Invoice Finance also offers unique add-ons like Liquidity Plus and bad debt protection. It is rated average on Trust Pilot.

Advance rate: Up to 90%.
Minimum turnover requirements: No minimum limit
Application process: Telephone and website.
Speed of Decision: Undisclosed.

Key Features:

  • Highly values client relationships so you’ll have your dedicated Relationship Manager and Account Executive.
  • Fully transparent and simple fee structure.
  • Provides an option for interest-free invoice factoring service termed Skipton Select.
  • A wide variety of invoice finance products are available including invoice factoring, invoice discounting, bad debt protection, and recovery loan schemes.
  • A business can access funds up to £8 million.

Summary

Skipton Business Finance (SBF) is part of Skipton Building Society, one of the UK’s oldest building societies. SBF has been funding SMEs in the UK for over 20 years.

Skipton offers a diverse range of products, including a fully transparent and interest-free offering called ‘Skipton Select’. It charges no discount charge on invoices, no annual fees, and no fees for transfers.

Skipton’s other offerings include disclosed invoice factoring and invoice discounting. Skipton could be a suitable option for SMEs as it has a transparent fee structure and no minimum turnover.

How Does Invoice Factoring Work?

Invoice factoring works in 4 simple steps:

Factoring agreement: You enter into an agreement with the factoring company outlining the terms of invoice finance like factor rate, fee structure, etc.

Sell goods & services: You sell your goods and services to customers and invoice them.

Invoice submission: You submit your invoices to the factoring company.

You get the money: The factoring company pays up to 90% of the invoice value upfront. The rest is paid (after fee deduction) once the invoices are cleared.

Written by:

Henry Baker
Henry Baker
Henry Baker, an adept financial & business copywriter in England, boasts a decade-long career collaborating with top-tier UK financial institutions. Renowned for his skill in translating intricate finance into captivating content, he's a trusted authority in simplifying complex concepts for diverse audiences.