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Get my 3 quotes →Sole traders can get invoice finance, but fewer lenders will look at it. Ultimate Finance says its invoice finance is for any UK business that sells to other businesses on credit, including sole traders and partnerships (read 14 Oct 2026). Many other lenders prefer limited companies, so ask before you apply. If you need it every month, becoming a limited company opens up more lenders. Market Invoice compares UK invoice finance providers, and you can get 3 free quotes through our introduction partner, a UK invoice finance provider.
What this page covers
This page covers
Invoice finance options for sole traders, which lenders say they accept them, and becoming a limited company
Not covered here
Tax advice, sole trader vs Ltd accounting, legal formation guidance
Your options
| Option | Sole traders? | Notes |
|---|---|---|
| Ultimate Finance | Yes, says its site | No published minimum turnover (ultimatefinance.co.uk) |
| Single-invoice lenders | Ask each one | Fund only the invoices you choose, for example Hydr |
| Most whole-ledger lenders | Often limited companies only | Check before you apply |
Should you become a limited company?
If you need invoice finance every month, more lenders will consider a limited company. Registering one online costs £100 and is usually done within 24 hours (GOV.UK). It also gives you limited liability, but it changes your tax and paperwork, so speak to an accountant before you decide.
Steps to convert
- Register the company at Companies House
- Open a business bank account in the company's name
- Raise new invoices from the company
- Ask lenders for quotes as a limited company
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.
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