Funding Alternative Invoice Finance
Funding Alternative is a UK business funder based in Chessington, Surrey. It offers short-term cash flow advances and also selective invoice finance: you choose single invoices to sell, and it says it usually advances 80% of each one. It asks for personal guarantees from every director and does not publish its fees.
What this page covers
This page covers
What Funding Alternative publishes about its selective invoice finance, its security and eligibility rules, and lenders to compare it with
Not covered here
Merchant cash advance and short-term business loans (Funding Alternative's own site), general invoice finance education (see /guides/), the full provider directory (see /providers/)
Key Facts
How its selective invoice finance works
- You choose an invoice for completed work and send it, with your bank statements (or open banking), your customer's details and the audit trail for the work.
- Funding Alternative checks the invoice with your customer and advances 80% of it (it says the figure can vary). It says it aims to fund within 24 hours once it has everything it needs.
- Your customer pays Funding Alternative on its normal terms, which it says are usually 30 to 60 days.
- Funding Alternative pays you the rest of the invoice, minus its fees.
Its other product is a short-term cash flow advance of £15,000 to £250,000, usually repaid over 3 to 9 months by fixed payments or a share of your takings. That is a form of borrowing, not invoice finance. If your application is turned down, its site says it may pass your details to other lenders, with your consent.
Sources: Funding Alternative's selective invoice financing page and FAQ page, read 14 Oct 2026.
Who it suits
Selective invoice finance suits a business that needs cash against one or two large invoices now and then, rather than a facility across its whole sales ledger. Weigh the security carefully: every director gives a personal guarantee, so they are personally liable if things go wrong.
How it compares
Hydr also funds single invoices. The others offer facilities across your sales ledger.
| Lender | Published minimum turnover | Paid up front | Source |
|---|---|---|---|
| Hydr | No minimum | Up to 100% per invoice | hydr.co.uk |
| Skipton Business Finance | None published | Up to 90% | skiptonbusinessfinance.co.uk |
| Bibby Financial Services | None published | Up to 85% | bibbyfinancialservices.com |
| Close Brothers Invoice Finance | £750k | Up to 90% | closeinvoice.co.uk |
Figures as published on each lender's own website, checked 14 October 2026. Most of these lenders do not publish their fees.
Questions to ask before you sign
- What is the total fee on this invoice, in pounds?
- What happens, and what do I owe, if my customer pays late or does not pay?
- Exactly what does each personal guarantee cover?
- Is this invoice finance or a cash advance, and how is each repaid?
Official site: Funding Alternative
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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