Alternatives to Aldermore Invoice Finance
Aldermore is a UK challenger bank that relaunched its invoice finance product as Aldermore Receivables Finance in 2025, with Growth Guarantee Scheme accreditation. It quotes from £250,000 turnover, advance rates up to 90%, service charges from 1.0% to 2.5%, and offers confidential discounting as standard. If you are below the £250k threshold, want selective or single-invoice factoring (Aldermore does whole-turnover only), or want to compare Aldermore against the rest of the UK market before deciding, the strongest alternatives are Close Brothers, Skipton, Bibby, Ultimate Finance, IGF and Hydr. MarketInvoice quotes three of them within 24 hours.
Director, Market Invoice
Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.
Last reviewed: 1 June 2026
Why people look for alternatives to Aldermore
- Turnover below £250k. Aldermore Receivables Finance starts at £250,000 annual turnover. Most UK SMEs sit below this and need a lender with a lower floor.
- Selective or spot factoring needed. Aldermore is whole-turnover only. If you want to finance one invoice or pick which invoices to factor, you need a different provider.
- Faster setup. Aldermore is ~7 working days. Independents on the MarketInvoice panel can be live in 24 to 48 hours.
- Confidential discounting at lower cost in the £250k to £500k bracket. Close Brothers and Skipton compete hard at this band.
- You were declined. Aldermore underwriting is moderately conservative on debtor concentration and trading history. Other lenders quote where Aldermore will not.
- You want broader comparison. Aldermore is one of 85 UK invoice finance providers. MarketInvoice quotes three of the best fits in 24 hours.
Alternatives at a glance
| Provider | Summary | Best when |
|---|---|---|
| Close Brothers Invoice Finance | FTSE 250 merchant bank. 0.5% starting service charge from £50k turnover. Specialist construction + recruitment teams. Cheaper than Aldermore for most SMEs; matches or beats on speed. | Default alternative when Aldermore declines on turnover or speed. Strongest fit for established SMEs and construction subbies. |
| Skipton Business Finance | Building-society backed. 0.5% from £100k turnover. Strong on confidential discounting and refactoring switches. Mid-cost mid-speed UK lender. | When you want a mutual-owned alternative to a PLC challenger bank, especially for confidential discounting. |
| Bibby Financial Services | Largest UK independent invoice finance lender. 0.75% from £50k turnover. Deep sector underwriting (construction, recruitment, manufacturing, marine). Acquired Aldermore Working Capital Finance in 2023. | When you want the broadest UK independent and you sit in a sector with specialist underwriting needs. |
| Ultimate Finance | Independent UK lender. From £50k turnover. Setup in 24 to 48 hours, faster than Aldermore. Cheaper for sub-£250k. | When you are below the £250k Aldermore floor and want a fast, established UK independent. |
| IGF | Independent UK lender. From £100k turnover. Strong on confidential discounting and selective options. | When Aldermore declines and you want a mid-tier independent with flexibility. |
| Hydr | Fintech invoice finance platform. Selective / spot factoring from very low turnover. Same-day setup. 100% advance on individual invoices. | When you want to factor a single invoice on demand rather than commit your whole sales ledger. |
The 6 strongest alternatives
1.Close Brothers Invoice Finance
FTSE 250 merchant bank. 0.5% starting service charge from £50k turnover. Specialist construction + recruitment teams. Cheaper than Aldermore for most SMEs; matches or beats on speed.
When to pick: Default alternative when Aldermore declines on turnover or speed. Strongest fit for established SMEs and construction subbies.
2.Skipton Business Finance
Building-society backed. 0.5% from £100k turnover. Strong on confidential discounting and refactoring switches. Mid-cost mid-speed UK lender.
When to pick: When you want a mutual-owned alternative to a PLC challenger bank, especially for confidential discounting.
3.Bibby Financial Services
Largest UK independent invoice finance lender. 0.75% from £50k turnover. Deep sector underwriting (construction, recruitment, manufacturing, marine). Acquired Aldermore Working Capital Finance in 2023.
When to pick: When you want the broadest UK independent and you sit in a sector with specialist underwriting needs.
4.Ultimate Finance
Independent UK lender. From £50k turnover. Setup in 24 to 48 hours, faster than Aldermore. Cheaper for sub-£250k.
When to pick: When you are below the £250k Aldermore floor and want a fast, established UK independent.
5.IGF
Independent UK lender. From £100k turnover. Strong on confidential discounting and selective options.
When to pick: When Aldermore declines and you want a mid-tier independent with flexibility.
6.Hydr
Fintech invoice finance platform. Selective / spot factoring from very low turnover. Same-day setup. 100% advance on individual invoices.
When to pick: When you want to factor a single invoice on demand rather than commit your whole sales ledger.
Did Aldermore stop doing invoice finance?
No, with a nuance. In 2023, Bibby Financial Services acquired Aldermore Working Capital Finance Ltd, which moved an existing book of customers to Bibby. Aldermore the bank did not exit. It relaunched the product as Aldermore Receivables Finance in 2025 with widened eligibility and Growth Guarantee Scheme accreditation. So if you applied to the old Aldermore product in 2024 and were referred elsewhere, the relaunched Receivables Finance is the current touchpoint.
How MarketInvoice compares
MarketInvoice is not a lender. We are an independent whole-of-market comparison and routing service: we cover all 85 active UK invoice finance providers including Aldermore, and quote three best fits within 24 hours, free of charge. See Aldermore vs MarketInvoice for the side-by-side.
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