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.

Quick Reference

Direct Answer

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

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

ProviderFee fromMin turnoverWhy it fits
Optimum Finance2-5%£100kBroad PO funding across sectors
Nucleus Commercial Finance2-4%£500kMid-market PO and trade finance
Time Finance3-5%£100kSME PO finance with manual underwriting
Stenn (now part of Investec)2-4%No minExport 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

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

PO finance vs invoice finance vs trade finance

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

Best UK PO finance providers compared

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

When PO finance is the wrong product

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

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: 8 May 2026

Get 3 Quotes Matched to Your Business

Free, no obligation, 60 seconds.

Your details are secure. We only share them with matched providers. See our privacy policy.

85% approval rate · 24hr funding · 85 providers

Purchase Order Finance UK FAQ

What is purchase order finance?

A UK working capital facility that pays your supplier directly against a confirmed customer purchase order, before you deliver goods or raise an invoice. The lender takes risk on the underlying transaction, repaid when the customer pays.

How much can I get with PO finance?

Typically 70-100% of supplier costs. Some providers fund 100% of the invoice value to suppliers; others fund 70-80% with the importer covering the gap. Limits depend on supplier and customer credit profiles, transaction history, and end-customer payment terms.

How much does PO finance cost?

2-5% of the funded amount per transaction cycle (order to payment). Effective annualised rate depends on the cycle length. A 90-day cycle at 3% fee equals roughly 12% APR. Plus arrangement fees on facility setup (typically £1,000-£5,000 one-off).

PO finance vs invoice finance UK?

PO finance funds the upstream (supplier) side of a transaction, before you've delivered or invoiced. Invoice finance funds the downstream side, after you've invoiced the customer. Many UK businesses use both: PO finance to pay the supplier, then invoice finance against the customer invoice once delivered. Combined, they fund the entire order-to-cash cycle.

Best UK PO finance providers?

Optimum Finance (broad PO funding), Nucleus Commercial Finance (mid-market), Time Finance (SME), Stenn (export only, instant decisioning), Drum Income (specialist SME). For trade finance with letter of credit, Trade Finance Global brokers across multiple lenders. Get at least 2 quotes.

Can I get PO finance as a startup?

Hard but not impossible. Most PO finance providers require 12+ months of trading and audited or filed accounts. Stenn can fund first-time exporters with strong end-customer credit. Time Finance considers startups with director experience and a creditworthy end-customer. Triver and Hydr offer related selective spot factoring on first invoices once delivery is complete, which can be combined with supplier credit terms to cover the gap.