Purchase Order Finance UK 2026
Market Invoice is an independent UK invoice finance comparison site that ranks 85 active UK lenders.
Purchase Order (PO) finance lets UK businesses fund supplier costs against a confirmed customer purchase order, before goods are delivered or an invoice is raised. The lender pays the supplier directly (or via a back-to-back letter of credit), the goods are delivered to the customer, the customer pays the invoice, and the lender takes its principal plus 2 to 5 percent fee. Used by importers, manufacturers and distributors who win large orders that exceed working capital. UK specialists include Optimum Finance, Nucleus, Time Finance and Stenn (export-only). Often combined with invoice finance to cover the entire order-to-cash cycle.
Last updated: 8 May 2026.
Purchase Order (PO) finance lets UK businesses fund supplier costs against a confirmed customer purchase order, before goods are delivered or an invoice is raised. The lender pays the supplier directly (or via a back-to-back letter of credit), the goods are delivered to the customer, the customer pa More detail + scope
Summary
Purchase Order (PO) finance lets UK businesses fund supplier costs against a confirmed customer purchase order, before goods are delivered or an invoice is raised. The lender pays the supplier directly (or via a back-to-back letter of credit), the goods are delivered to the customer, the customer pays the invoice, and the lender takes its principal plus 2 to 5 percent fee. Used by importers, manufacturers and distributors who win large orders that exceed working capital. UK specialists include Optimum Finance, Nucleus, Time Finance and Stenn (export-only). Often combined with invoice finance to cover the entire order-to-cash cycle.
This page covers
purchase order finance UK: how it works, costs, comparison with invoice finance, best providers
Not covered here
General invoice finance education (see /guides/), individual provider reviews (see /providers/), full pricing breakdown (see /guides/costs/)
UK providers worth knowing
| Provider | Fee from | Min turnover | Why it fits |
|---|---|---|---|
| Optimum Finance | 2-5% | £100k | Broad PO funding across sectors |
| Nucleus Commercial Finance | 2-4% | £500k | Mid-market PO and trade finance |
| Time Finance | 3-5% | £100k | SME PO finance with manual underwriting |
| Stenn (now part of Investec) | 2-4% | No min | Export only, instant decisioning |
How PO finance works step by step
See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.
Typical advance rates and fees
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PO finance vs invoice finance vs trade finance
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Best UK PO finance providers compared
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When PO finance is the wrong product
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Related finance
Purchase order finance often runs alongside pre-shipment finance and contract finance, or import finance where the goods come from overseas.
Founder & Managing Director, Muswell Rose, 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.
Last reviewed: 14 July 2026