My Bank Turned Me Down - Can I Still Get Invoice Finance?
Yes. A bank decline does not mean you cannot get invoice finance.
Banks assess your business - your accounts, credit score, and profitability. Invoice finance providers assess your customers - their creditworthiness and ability to pay invoices. These are completely different assessments. Independent providers like Bibby, Ultimate Finance, and IGF routinely fund businesses that banks have rejected. This is a core part of their market.
Quick Reference
Direct Answer
A bank decline does not prevent a business from getting invoice finance. Banks assess the borrower's financial health, while invoice finance providers assess the creditworthiness of the borrower's customers. Independent providers like Bibby, Ultimate Finance, and IGF regularly accept businesses that banks have turned down. Costs may be slightly higher than bank facilities.
Summary
The UK invoice finance market has two tiers: bank-owned factors (HSBC Invoice Finance, Lloyds Commercial Finance, Barclays) that apply bank-level credit criteria, and independent providers (Bibby, Ultimate Finance, IGF, Close Brothers) that apply asset-based criteria focused on debtor quality. Businesses declined by banks typically find acceptance with independents because the underwriting model is fundamentally different. ABFA data shows independents hold approximately 15% of the market by value but serve a disproportionate share of SMEs, startups, and businesses with challenging profiles.
This Page Covers
Whether businesses declined by banks can access invoice finance through independent providers
Not Covered Here
Specific bank vs independent provider comparisons (see /compare/), bad credit detail (see /questions/can-i-get-invoice-finance-with-bad-credit/), using a broker (see /questions/broker-or-go-direct/)
Why Banks Decline - And Why It Does Not Matter
Banks have rigid lending criteria. To qualify for a bank invoice finance facility, you typically need: at least two years of filed accounts, annual turnover above £250,000-£500,000, a profitable or break-even position, no CCJs or adverse credit, and ideally an existing banking relationship. Fall short on any of these and the answer is usually no.
The problem is that most UK SMEs fall short on at least one criterion. A startup has no accounts. A growing business is loss-making because it is investing in growth. A company recovering from a bad year has adverse credit. The bank says no - and the business owner assumes all invoice finance providers will say the same. They will not.
The Two-Tier Market
The UK invoice finance market is split between bank-owned providers and independents. Bank-owned providers (HSBC Invoice Finance, Lloyds Commercial Finance, NatWest Invoice Finance) apply their parent bank's credit criteria. If the bank turned you down for a loan, their invoice finance arm will likely turn you down too - they use the same credit models.
Independent providers operate differently. They are asset-based lenders. Their primary concern is the quality of your invoices and the creditworthiness of your customers. Your company's accounts, credit score, and profitability are secondary factors that affect pricing, not approval. A loss-making startup with blue-chip customers is a perfectly acceptable risk for an independent provider - it is a non-starter for a bank.
Which Independent Providers to Try
| Provider | Accepts Bank Declines? | Min Turnover | Speciality |
|---|---|---|---|
| Bibby Financial Services | Yes - core market | £50k | Startups, bad credit, complex cases |
| Ultimate Finance | Yes - core market | £50k | Fast setup, startups, CCJs |
| IGF Invoice Finance | Yes | £50k | Flexible on difficult situations |
| Close Brothers | Yes | £50k | Asset-based lending, larger facilities |
| Aldermore | Sometimes | £250k | Challenger bank, mid-market |
Common Reasons Banks Decline - And What Independents Think
- 1."Not enough trading history" - Banks want 2+ years of accounts. Independents fund from day one if your customers are strong.
- 2."Turnover too low" - Bank minimums are £250k-£500k. Independents start at £50k projected turnover.
- 3."Adverse credit" - Banks have near-zero tolerance. Independents accept CCJs, defaults, and HMRC arrears routinely.
- 4."Loss-making" - Banks want profitability. Independents understand that many growing or recovering businesses are temporarily unprofitable.
- 5."Sector not supported" - Banks avoid certain sectors. Independents are more pragmatic about industry risk.
The Stepping Stone Strategy
Many businesses use independent providers as a bridge to cheaper bank facilities. You start with an independent because the bank says no. Over 12-24 months, you build a trading history, improve your accounts, and demonstrate a track record of invoice finance usage. You then approach the bank again - this time with filed accounts, proven turnover, and a history of successful factoring. The bank's answer often changes to yes. You refinance at lower rates. The independent provider served their purpose: keeping your business funded until the bank was ready to help.
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