Invoice Finance for MOD and Defence Contractors UK 2026

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MOD and defence suppliers can use invoice finance to get paid on invoices to the MOD or to a prime contractor before they are settled. Smaller suppliers can compare Bibby Financial Services, Ultimate Finance, Skipton Business Finance and Lloyds. Aldermore and Close Brothers publish a £750,000 minimum, and IGF works with firms over £5m. Tell any lender early if your contract paperwork is restricted. Market Invoice compares the UK providers that fit this need, 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 for UK MOD and defence suppliers: lenders to compare, payment terms, prime contractors, restricted paperwork and other currencies

Not covered here

General invoice finance education (see /guides/), individual provider reviews (see /providers/), full pricing breakdown (see /guides/costs/)

UK lenders to compare

LenderPublished minimum turnoverPaid up frontSource
Bibby Financial Services None published Up to 85% bibbyfinancialservices.com
Ultimate Finance None published Up to 95% ultimatefinance.co.uk
Skipton Business Finance None published (the smallest it says it has funded, not a formal minimum) Up to 90% skiptonbusinessfinance.co.uk
Lloyds Bank Commercial Finance £100k (invoice discounting only) Up to 90% lloydsbank.com
Aldermore Invoice Finance £750k Up to 90% aldermore.co.uk
Close Brothers Invoice Finance £750k Up to 90% closeinvoice.co.uk
IGF (Independent Growth Finance) £5m Up to 90% (receivables); stock up to 85%, plant up to 75% igfgroup.com

Figures as published on each lender's own website, checked 14 October 2026. None of these lenders publishes its fees.

MOD invoices and prime contractor invoices

If you invoice the MOD directly, GOV.UK says an agreed payment date must usually be within 30 days for public authorities (GOV.UK late commercial payments, read 14 October 2026). If you supply a prime contractor, the prime is your customer and you are paid on its terms, which can be longer. A lender looks at whoever owes you the money, so tell it who your customers are and how they pay.

AP

Adam Parker

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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Defence Contractor Invoice Finance UK FAQ

Can MOD suppliers get UK invoice finance?

Yes. Invoices to the MOD, or to a defence prime contractor, are invoices to an organisation, which is what invoice finance funds. The lender looks at who owes you the money and at your own business. Pricing is quoted per facility, so get more than one quote.

Which lenders should a defence supplier compare?

Bibby Financial Services and Ultimate Finance do not publish a minimum turnover. Skipton Business Finance says it has funded businesses as small as £100,000. Lloyds publishes a £100,000 minimum and offers invoice discounting. Aldermore and Close Brothers publish a £750,000 minimum. IGF works with businesses turning over more than £5m.

What if my contract paperwork is restricted?

Lenders usually want to see the contract and proof the work was done before they fund an invoice. If parts of your contract are restricted or redacted, tell each lender at the start and ask how it handles that. Don't share anything your contract does not allow you to share.

How long does the MOD take to pay?

GOV.UK says an agreed payment date must usually be within 30 days for public authorities. Payment can take longer if an invoice is disputed or waiting for approval. If you supply a prime contractor rather than the MOD, you are paid on the prime's own terms.

Can I fund invoices in dollars or euros?

Some lenders fund invoices in other currencies and some don't. If you export, ask each lender which currencies it funds and how it handles the exchange rate. UK Export Finance may also support some export contracts, so check with it directly.