Novuna Business Finance Review
Novuna Business Finance (formerly Hitachi Capital) offers invoice factoring and discounting from 0.7% service charge with advance rates up to 90%, for UK businesses with turnover from £100,000. Backed by Mitsubishi UFJ, one of the world's largest financial groups, they provide the security of major international banking support with a UK-focused service team.
Key Facts
Pros and Cons
Strengths
- Backed by one of world's largest financial groups
- Competitive rates (from 0.7%)
- Strong technology platform
- Combined with asset finance and vehicle finance
- Good for businesses needing multiple finance products
Limitations
- Higher minimum turnover (£100k)
- Brand less well-known since Hitachi rebrand
- Can be more rigid on terms than independents
When Novuna Business Finance Fits
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Manufacturing businesses turning over £500k-£5m
Novuna's heritage as Hitachi Capital means they understand long production cycles and complex supply chains. Their 90% advance rate helps bridge the gap between component purchase and customer payment in engineering and production sectors.
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Distribution and wholesale companies with £250k+ turnover
The 0.7% service charge (among the lowest in UK invoice finance) makes Novuna competitive for distributors working on tight margins. Their backing by Mitsubishi UFJ provides confidence for businesses managing high-value stock lines.
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Established service businesses seeking confidential facilities
Novuna offers both factoring and discounting, so professional services firms (recruitment, IT, consultancy) turning over £100k+ can access invoice finance without clients knowing, protecting long-standing relationships.
When to Look Elsewhere
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Start-ups under 12 months trading or below £100k turnover
Better fit: Triver. Triver accepts businesses from their first invoice with no minimum turnover threshold, while Novuna requires £100k+ established trading history.
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Construction subcontractors needing same-day funding
Better fit: IGF Invoice Finance. IGF specialises in construction with application-to-money timelines under 48 hours, whereas Novuna's typical setup is 7 days.
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Businesses invoicing consumers (B2C) rather than trade customers
Better fit: Close Brothers. Close Brothers has specialist consumer debtor assessment teams for B2C invoicing; Novuna focuses primarily on business-to-business trade.
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Companies needing very large facilities over £10m
Better fit: HSBC Invoice Finance. HSBC Invoice Finance handles facilities into eight figures with dedicated corporate teams, while Novuna targets the £100k-£5m SME market.
How Novuna Business Finance Compares
| Provider | Type | Min facility | Fee from | Advance to | Speed |
|---|---|---|---|---|---|
| Close Brothers | both | £50k | 0.75% | 90% | 5 days |
| Bibby Financial Services | both | £25k | 0.75% | 90% | 7 days |
| IGF Invoice Finance | both | £100k | 0.8% | 90% | 2 days |
| Skipton Business Finance | both | £50k | 0.85% | 85% | 5 days |
vs Close Brothers: Close Brothers accepts lower turnover from £50k facility minimum and has deeper retail/consumer debtor expertise, whereas Novuna focuses on B2B manufacturing and distribution with Mitsubishi backing.
vs Bibby Financial Services: Bibby operates internationally across 14 countries with facilities from £25k, making them better for exporters; Novuna is UK-focused with higher £100k turnover threshold but comparable pricing.
vs IGF Invoice Finance: IGF specialises in construction and recruitment with faster 48-hour setup; Novuna serves broader sectors but takes 7 days with manufacturing/distribution heritage from Hitachi Capital days.
vs Skipton Business Finance: Skipton is backed by a UK building society and offers 85% advances; Novuna provides higher 90% advances backed by global banking group Mitsubishi UFJ with similar approval speed.
Worked Example
A Midlands precision engineering business with £850,000 turnover supplying automotive components
Setting Up With Novuna Business Finance
- 1
Initial discussion and business review
Contact Novuna directly or through a broker. They'll review your turnover (minimum £100k), sector fit, and debtor ledger. Expect initial phone assessment within 24 hours, followed by document request for last 12 months' accounts, sales ledger, and details of top 10 customers.
- 2
Credit assessment and facility proposal
Novuna's underwriting team assesses your customers' creditworthiness (not just your business). This typically takes 3-5 working days. You'll receive a formal facility proposal showing advance rate (usually 80-90%), service charge (from 0.7%), and any discount charge if funds are drawn. Clear breakdown of setup fees provided at this stage.
- 3
Documentation and first funding
Once terms are accepted, legal documentation is prepared (this can be same day for standard agreements). You'll need to notify your customers if choosing factoring, or keep it confidential under invoice discounting. First funds typically arrive within 7 working days of application, with subsequent invoices funded within 24 hours of submission.
FAQs
What happened to Hitachi Capital and is Novuna the same company?
Hitachi Capital's UK business rebranded to Novuna Business Finance in 2022 following acquisition by Mitsubishi UFJ Financial Group. Same legal entity, same teams, same product range, but now backed by one of the world's five largest banks by assets. Existing customers experienced no change to terms or service, just updated branding and stronger balance sheet support.
Does Novuna's 0.7% service charge apply to all businesses or just larger facilities?
The 0.7% service charge is Novuna's advertised starting rate, typically available to established businesses with £500k+ turnover, strong debtor books, and low-risk sectors like distribution or professional services. Smaller facilities or higher-risk sectors may see 1-1.5%. Request a specific quote based on your ledger; the rate is determined by turnover, customer creditworthiness, and invoice volume rather than relationship negotiation.
Can I use Novuna invoice finance if my customers are other large manufacturers or retailers?
Yes, Novuna actively targets this scenario given their manufacturing heritage. They're comfortable funding invoices to large corporates and blue-chip retailers because these debtors are easier to credit-assess. In fact, businesses invoicing household-name customers often secure higher advance rates (closer to 90%) and lower service charges because the credit risk is minimal compared to invoicing small unknown firms.
What's the difference between choosing factoring or discounting with Novuna?
With factoring, Novuna manages your sales ledger, chases payment, and your customers pay them directly (they're notified of the arrangement). With confidential invoice discounting, you retain full control of collections and customers aren't told about the facility. Discounting typically requires £250k+ turnover and stronger credit control systems, but costs similarly. Manufacturing and distribution clients often prefer discounting to maintain direct customer relationships built over decades.
How quickly can I access money after submitting an invoice to Novuna?
After initial facility setup (7 days), subsequent invoice funding is typically within 24 hours of submission for approved customers. You upload or email the invoice, Novuna verifies it against the sales ledger and credit limit, then transfers the advance percentage (80-90%) to your bank account same or next working day. The reserve (remaining 10-20% minus fees) is released when your customer pays, usually on their normal payment terms.
Our Verdict
Novuna is a solid mid-market option backed by serious financial muscle. If you need multiple finance products (invoice finance plus asset finance or vehicle finance), their combined offering is convenient. The Hitachi-to-Novuna rebrand has caused some brand confusion, but the underlying service and financial backing remain strong.