Invoice Discounting UK 2026

Invoice discounting lets a UK business borrow against its unpaid invoice book, usually up to 85% to 90%, while keeping control of its own collections. It is normally confidential, so customers never know a facility exists, and it suits established firms with their own credit control. On Market Invoice's scoring the best UK providers offering confidential discounting for 2026 are Kriya (Allica Bank), Close Brothers Invoice Finance, Bibby Financial Services.

Last reviewed: 2026-05-27. Ranking covers 24 UK providers offering confidential invoice discounting, with full structured terms in our dataset.

Invoice discounting is invoice finance where a provider lends up to 85-90% against your invoice book while you keep control of collections, usually confidentially. The best-rated UK providers for 2026 are Kriya (Allica Bank), Close Brothers Invoice Finance, Bibby Financial Services, Ultimate Finance, Hydr. More detail + scope

Summary

Invoice discounting is a confidential invoice-finance facility: you draw cash against your debtor book but run your own credit control, so customers never know. It is cheaper than factoring and aimed at established UK businesses with strong finance functions. Market Invoice ranks 24 UK providers offering confidential discounting by overall rating, transparency and setup speed; Kriya (Allica Bank) leads at 4.5/5.

This page covers

What invoice discounting is, how confidential discounting differs from factoring, what it costs in 2026, and 24 UK providers ranked with min turnover, advance rate and setup speed

Not covered here

Invoice factoring (see /invoice-factoring/), the full company ranking (see /best/invoice-finance-companies-uk-2026/), the full dataset (see /data/uk-invoice-finance-rate-index/)

How invoice discounting works

You keep raising invoices and chasing payment exactly as you do now. The provider tracks your outstanding invoice book and lets you draw down a percentage of its value, typically up to 85% to 90%, whenever you need working capital. Customers pay into a trust account in your business name, so the arrangement stays confidential. As the book turns over, your available funding rises and falls with it. Because you handle collections, the service charge is lower than factoring, but lenders expect robust credit-control processes.

Best UK Invoice Discounting Companies 2026

Providers offering confidential invoice discounting, ordered by overall editorial rating, then transparency, then setup speed. Service charges are starting rates; a discount charge of base rate (3.75% as of 18 December 2025) plus margin applies on the cash drawn.

# Company Type Min turnover Advance Setup Rating
1 Kriya (Allica Bank) Fintech No minimum Up to 100% per invoice 1 working day 4.5
2 Close Brothers Invoice Finance Independent £500k Up to 90% 5 working days 4.5
3 Bibby Financial Services Independent £100k Up to 90% 5 working days 4.4
4 Ultimate Finance Independent £100k Up to 90% 3 working days 4.3
5 Hydr Fintech No minimum Up to 100% per invoice Same day to 1 working day 4.2
6 Aldermore Invoice Finance Independent £250k Up to 90% 7 working days 4.2
7 Novuna Business Finance Independent £500k Up to 90% 7 working days 4.2
8 Skipton Business Finance Independent £100k Up to 90% 5 working days 4.2
9 Time Finance Independent £250k Up to 90% 7 working days 4.1
10 IGF (Independent Growth Finance) Independent £500k Up to 90% receivables + stock + plant 10 working days 4.1
11 ABC Finance Independent Varies by funder Up to 90% (funder dependent) 3 to 10 working days 4.0
12 Capitalise Fintech Varies by funder Up to 90% (funder dependent) 3 to 10 working days 4.0
13 eCapital Independent £100k Up to 90% 5 to 10 working days 4.0
14 Swoop Funding Fintech Varies by funder Up to 90% (funder dependent) 3 to 10 working days 4.0
15 Touch Financial Independent Varies by funder Up to 90% (funder dependent) 3 to 10 working days 4.0
16 White Oak (UK) Independent £50k Up to 90% 5 to 10 working days 4.0
17 HSBC Invoice Finance High street bank £500k Up to 90% 10 to 15 working days 4.0
18 Lloyds Bank Commercial Finance High street bank £500k Up to 90% 10 to 15 working days 4.0
19 Apollo Business Finance Independent Varies by funder Up to 90% (funder dependent) 3 to 10 working days 3.9
20 Fund Invoice Discounting Independent Varies by funder Up to 90% (funder dependent) 3 to 10 working days 3.9
21 SME Invoice Finance Independent £50k Up to 90% 5 to 10 working days 3.9
22 Barclays Invoice Finance High street bank £500k Up to 90% 10 to 15 working days 3.9
23 NatWest Invoice Finance High street bank £500k Up to 90% 10 to 15 working days 3.9
24 Santander Invoice Finance High street bank £500k Up to 85% 10 to 15 working days 3.8

Source: Market Invoice analysis, last reviewed 2026-05-27. Ratings are editorial, set from published criteria and Companies House records. Inclusion and ranking are never paid for. See the UK Invoice Finance Rate Index for the full dataset.

Invoice discounting vs factoring: when each wins

Discounting wins when

  • You run your own credit control effectively.
  • Confidentiality matters and customers must not know.
  • Turnover is larger and you want the lowest service charge.
  • You want to keep the customer relationship fully in-house.

Factoring wins when

  • You have no dedicated credit-control team.
  • You want collections and late-payment chasing handled.
  • Turnover is smaller or the business is younger.
  • You are comfortable with customers knowing a provider is involved.

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OM

Oliver Mackman

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: 27 May 2026

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Invoice Discounting FAQ

What is invoice discounting?

Invoice discounting is a form of invoice finance where a provider lends you a percentage of your unpaid invoice book, usually up to 85% to 90%, while you keep control of your own credit control and collections. It is normally confidential, so your customers are not aware a facility is in place and continue to pay you directly into a trust account. It suits established businesses with their own finance function.

What is the difference between invoice discounting and factoring?

With invoice discounting you run your own collections and the facility is confidential. With factoring the provider chases your customers and the arrangement is disclosed. Discounting is generally cheaper because the provider does less work, but it requires you to have credible credit-control processes, which is why lenders usually reserve it for larger, more established businesses.

How much does invoice discounting cost in 2026?

Invoice discounting has a service charge of roughly 0.25% to 1% of invoice value, lower than factoring because you handle collections, plus a discount charge of the Bank of England base rate (3.75% as of 18 December 2025) plus a margin of about 1.5% to 3% on the cash drawn. Total effective cost is typically 0.5% to 1.5% of annual turnover.

Which are the best invoice discounting companies in the UK?

On Market Invoice's editorial scoring, the top-rated UK providers offering confidential invoice discounting for 2026 are Kriya (Allica Bank), Close Brothers Invoice Finance, Bibby Financial Services, Ultimate Finance, Hydr. Ranking weights overall rating, then transparency, then setup speed. Most discounting facilities are aimed at businesses with turnover above £250,000 with their own credit control.

Is invoice discounting always confidential?

Confidential invoice discounting is the standard form and keeps the facility hidden from your customers. Disclosed discounting also exists, where customers are notified but you still run collections. Lenders offer confidential discounting to businesses they judge to have strong enough systems and financials to manage their own debtor book reliably.