What lenders typically weigh
For this situation, UK SME lenders typically weigh a small set of signals more heavily than others. The strength of each lever affects which lenders will look at the case and what terms you might expect:
- B2B billing on credit terms
- Invoice finance only fits B2B trade with payment terms (typically 30–90 days). B2C and immediate-pay businesses use other products.
- Debtor concentration
- A single customer over 30% of the ledger reduces advance rates. Diversified debtors strengthen the application.
- Customer credit quality
- Strong corporate or credit-checkable customers unlock higher advance rates. Sole-trader or untraceable customers reduce them.
- Invoice cleanliness
- Invoices after work completion with clear terms, no retentions and no set-off are easiest to fund. Stage-payment contracts complicate eligibility.
- Sector fit
- Some sectors (construction, recruitment, manufacturing) have specialist IF lenders; others have a narrower pool. Confirm sector appetite up front.
Finance types that usually fit this situation
UK lenders that often look at this situation
The lenders below publish criteria consistent with this situation. Final approval is always subject to lender underwriting.
Bibby
Factoring / invoice discounting
- Amount
- Not disclosed
- Speed
- Not disclosed
- Security / PG
- Invoice-backed
- Data confidence
- Medium
Skipton Business Finance
Factoring / discounting
- Amount
- Up to 90% invoice advance
- Speed
- Not disclosed
- Security / PG
- Invoice-backed
- Data confidence
- Medium
Kriya
Selective invoice finance
- Amount
- Up to 90% invoice advance
- Speed
- Within 24h advertised
- Security / PG
- Invoice-backed
- Data confidence
- Medium
Time Finance
Invoice finance
- Amount
- Up to 90% invoice advance
- Speed
- Often within 24h post invoice
- Security / PG
- Invoice-backed
- Data confidence
- Medium
Nucleus
Revenue-based loan
- Amount
- Up to £300k; up to 200% monthly revenue
- Speed
- Rapid decision
- Security / PG
- Not disclosed
- Data confidence
- High
Novuna Business Cash Flow
Invoice finance / factoring
- Amount
- Up to 90% invoice value
- Speed
- 24–72h
- Security / PG
- Invoice-backed; adviser/comparator model
- Data confidence
- Medium
If you can't qualify yet
If invoice finance is not accessible because of B2C revenue, disputed invoices or concentration, look at alternative working capital routes. Card-led businesses use merchant cash advance. Service businesses with steady recurring revenue use unsecured loans from iwoca, Funding Circle or Kriya. If a single problem customer is blocking the application, selective single-invoice finance from Kriya can fund the other invoices without that exposure. Clean up disputes and credit notes on the ledger before reapplying — these directly reduce eligible balances.
Frequently asked questions
- How much of my invoice will the lender advance?
- Typically 80–90% on eligible UK B2B invoices, with the balance released when the customer pays. Concentration limits, dispute history and debtor credit quality affect the rate.
- Is invoice finance available for one big invoice?
- Yes — selective or single-invoice finance from providers like Kriya funds individual invoices without committing the whole ledger. Unit cost is higher than a full facility but flexibility is greater.
- Will my customers know I use invoice finance?
- Yes for factoring (the lender is named on the invoice). For confidential invoice discounting, no — collections continue under your name. Discounting is usually reserved for stronger accounts.
- Can construction firms use invoice finance?
- Yes, but the lender pool is narrower. Look for providers with explicit construction experience — Bibby, Skipton Business Finance and Time Finance are commonly cited. Advance rates are usually lower than non-construction sectors because of retentions and pay-when-paid clauses.
- Can I use invoice finance for export sales?
- Some UK lenders fund export receivables, often with credit insurance. Pricing differs from domestic. Confirm with the lender if export sales are a material part of the ledger.