Invoice Finance for Startups Under 12 Months Old - Yes, Even Day One
Yes, startups under 12 months can get invoice finance.
Several UK providers accept businesses from their very first day of trading. Invoice finance is secured against your customers' ability to pay, not your trading history. If you have B2B invoices from creditworthy customers, providers like Bibby, Ultimate Finance, and IGF will fund you - no accounts filed, no track record needed.
Quick Reference
Direct Answer
Startups under 12 months old can access invoice finance from day one of trading. Providers like Bibby, Ultimate Finance, and IGF assess the creditworthiness of your customers rather than your trading history. No filed accounts are required. Projected turnover of £50,000+ is typical for whole-ledger facilities, though spot factoring has no minimums.
Summary
Invoice finance is uniquely suited to startups because the credit decision rests on the debtor (the startup's customer), not the startup itself. This is fundamentally different from bank loans, overdrafts, or venture capital. UK providers that accept day-one startups include Bibby Financial Services, Ultimate Finance, and IGF Invoice Finance. The recruitment, construction, and professional services sectors are the most common startup use cases. Costs are slightly higher for startups (0.25-0.5% premium) but reduce as trading history builds.
This Page Covers
Whether startups with less than 12 months of trading history can access invoice finance and which providers accept them
Not Covered Here
General startup finance options (not covered), venture capital or equity funding (not covered), established business invoice finance (see /questions/invoice-finance-for-startups/)
Why Startups Can Get Invoice Finance When Banks Say No
Banks lend based on your business - your accounts, your profit history, your balance sheet. A startup has none of these. That is why banks routinely decline overdraft and loan applications from businesses under two years old.
Invoice finance works differently. The provider is not lending to you based on your financial strength. They are advancing money against invoices owed to you by your customers. If your customer is the NHS, a FTSE 250 company, or an established firm with good credit, the provider knows that invoice will be paid. Your company being one week old is irrelevant to whether Barclays or the Ministry of Defence settles their invoices.
Which Providers Accept Day-One Startups?
| Provider | Accepts Day-One? | Min Turnover | Setup Speed |
|---|---|---|---|
| Bibby Financial Services | Yes | £50k projected | 5-7 working days |
| Ultimate Finance | Yes | £50k projected | 3-5 working days |
| IGF Invoice Finance | Yes | £50k projected | 5-7 working days |
| Close Brothers | Case by case | £50k | 7-10 working days |
| High street banks | Generally no | £250k-£500k | 2-4 weeks |
The First 12 Months - What to Expect
During your first year, a provider will typically offer slightly conservative terms. Advance rates might be 75-80% rather than 85-90%. Service charges might be 0.75-1.5% rather than 0.5-1%. This reflects the provider's lack of data about your business - they are pricing the uncertainty, not penalising you.
As you build a track record - invoices are raised on time, customers pay within terms, there are no disputes - the provider will improve your terms. Most facilities have an annual review where advance rates and fees are reassessed. By month 12, many startups find their terms are comparable to established businesses.
The Recruitment Agency Model
The most common startup invoice finance scenario in the UK is a new recruitment agency. According to the Asset Based Finance Association (ABFA), recruitment accounts for approximately 20% of all invoice finance facilities by volume. The pattern is always the same: an experienced recruiter leaves their employer, sets up their own agency, wins their first placement within weeks, and immediately needs funding.
The contractor needs paying on Friday. The client pays the agency on 30-day terms. Without invoice finance, the new agency cannot meet payroll. With it, the agency submits the timesheet, receives 85% of the invoice value within 24 hours, and pays the contractor. From week two, the facility is self-funding - each week's timesheets finance next week's payroll.
Documents You Will Need
- Certificate of incorporation and memorandum of association
- Business plan or cash flow forecast (does not need to be elaborate)
- Copies of contracts, purchase orders, or engagement letters from customers
- Sample invoices (even if you have only raised one)
- Director ID and proof of address
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: 13 April 2026