Best Invoice Finance for Small Business UK 2026

Compare UK invoice finance providers for your situation, then get 3 free quotes. Free, no obligation, and nothing to pay if you decide not to proceed.

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Recruitment agencyConstructionWholesaleUnder £500k turnoverConfidential (clients mustn't know)Not sure

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For a small business, the first question is which lenders will take you. Hydr funds single invoices and publishes no minimum turnover. Skipton Business Finance publishes no minimum turnover. Ultimate Finance and Bibby Financial Services publish no minimum and decide case by case. Skipton, Ultimate Finance and Bibby don't publish their fees, so get quotes and compare the total cost. Hydr publishes a fixed fee per invoice. 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 lenders a small UK business can reach, with published minimum turnover and advance figures

Not covered here

Large corporate providers, detailed cost calculations (see costs guide), individual provider reviews

Four lenders to compare

LenderPublished minimum turnoverPaid up frontSource
Hydr No minimum Up to 100% per invoice hydr.co.uk
Skipton Business Finance None published Up to 90% skiptonbusinessfinance.co.uk
Ultimate Finance None published Up to 95% ultimatefinance.co.uk
Bibby Financial Services None published Up to 85% bibbyfinancialservices.com

Figures as published on each lender's own website, checked 14 October 2026. Most of these lenders do not publish their fees.

Hydr: for single invoices and the smallest businesses

Hydr lets you pick which invoices to fund, with no whole-ledger contract. It says it funds 100% of the invoice for a fixed fee, for example £118.50 on a £3,000 invoice, and that you can be funded in as little as 24 hours (hydr.co.uk, read 14 Oct 2026).

Worth knowing: a fixed fee per invoice is easy to understand, but if you fund lots of invoices every month, a whole-ledger facility may cost less. Compare both. Full review →

Skipton Business Finance: owned by a building society

Skipton Business Finance is owned by Skipton Building Society. It publishes a £100,000 minimum and says it has arranged confidential invoice discounting for businesses with turnover as small as £100,000 (Skipton). It agrees its fees per facility.

Worth knowing: below £100,000 turnover you will need a different lender. Full review →

Ultimate Finance: if setup time matters

Ultimate Finance publishes no minimum turnover. It says it advances up to 95% of the invoice, sets up a facility within one week, and then pays within 24 hours of receiving an invoice (Ultimate Finance, read 14 Oct 2026).

Worth knowing: it doesn't publish its fees, so get a quote to compare. Full review →

Bibby Financial Services: factoring or discounting

Bibby publishes no minimum turnover and advances up to 85% of the invoice. It offers both factoring and invoice discounting. It does not publish its fees.

Worth knowing: whole-ledger contracts usually have a minimum term and a notice period, so check both before you sign. Full review →

As you grow, more lenders come into range, for example Close Brothers (£750,000 minimum turnover) and IGF (over £5m turnover).

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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Small Business Invoice Finance FAQ

What is the minimum turnover for small business invoice finance in the UK?

It depends on the lender. Hydr, which funds single invoices, publishes no minimum. Skipton publishes no minimum. Bibby and Ultimate Finance publish no minimum and decide case by case. Some lenders are aimed at bigger firms: Close Brothers publishes £750,000 and IGF over £5m.

Can sole traders get invoice finance?

Sometimes, but most lenders prefer limited companies. Ask each lender before you apply. See our guide to invoice finance for sole traders.

What's the cheapest invoice finance for a small business?

No one can say in advance. Skipton, Bibby and Ultimate Finance don't publish their fees, so you need quotes. Hydr charges a fixed fee per invoice: its own example is £118.50 on a £3,000 invoice (hydr.co.uk, read 14 Oct 2026). On top of a service charge, whole-ledger lenders usually add a discount charge, which is interest on the money paid to you.

Do small businesses need a personal guarantee for invoice finance?

Often, yes. Many lenders ask the directors of a small company for a personal guarantee. If you want to avoid one, say so when you ask for quotes and ask each lender what it needs.

How quickly can a small business get invoice finance set up?

Ultimate Finance says it sets up a facility within one week and then pays within 24 hours of receiving an invoice. Hydr says signing up takes less than 10 minutes and you can be funded in as little as 24 hours. Other lenders don't all publish a time, so ask.

What's the difference between factoring and invoice discounting for small businesses?

With factoring, the lender collects payment from your customers, so they know you use finance. With invoice discounting, you keep chasing your own customers and they usually don't know. Discounting is often offered to bigger businesses, though Skipton says it has arranged confidential invoice discounting for businesses with turnover as small as £100,000.

Can a startup or new small business get invoice finance?

Some lenders will look at it. Single-invoice lenders such as Hydr publish no minimum turnover. Whole-ledger lenders decide case by case, so ask before you apply. See our guide for startups.

How did Market Invoice pick these four?

We picked lenders a small business can reach: ones that publish a low minimum turnover, or none at all. The figures in the table come from each lender's own website. Which lender suits you best is our view, not a score. Market Invoice is run by Best Business Loans Ltd (company number 16833937). Our introduction partner pays us a fixed fee for each business we introduce, whether or not you go ahead.