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 sales on credit terms
- Core requirement — invoice finance only fits businesses that raise invoices to other businesses on payment terms. B2C is generally excluded.
- Customer credit quality
- Strong corporate or credit-checkable customers unlock higher advance rates. Sole-trader or untraceable customers reduce them.
- Debtor concentration
- Diversified ledger (no single customer over 30%) supports higher advance rates. Concentrated books face concentration limits.
- Invoice cleanliness
- Invoices raised after work completion with clear terms, no retentions, no stage payments and no credit notes are easiest to fund.
- Trading history
- Most UK IF lenders want at least 6–12 months of trading. Some sector specialists look at younger businesses with strong debtors.
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 isn't accessible because of B2C revenue, concentration or disputes, look at alternative working capital routes. Card-led businesses use merchant cash advance. Service businesses with steady recurring revenue use unsecured loans from iwoca or Kriya. If a single problem customer is blocking the application, selective single-invoice finance can fund the rest. Clean up disputes and credit notes on the ledger before reapplying — these directly reduce eligible balances. For sector-specific blockers (construction, recruitment), search for lenders explicitly publishing experience in your sector.
Frequently asked questions
- How do invoice finance lenders calculate the advance?
- They take the gross invoice value, deduct any disputed amounts, credit notes, retentions or set-off, then apply the advance rate (usually 80–90%). The balance (10–20%) is released when the customer pays.
- Are export invoices eligible?
- Some UK lenders fund export receivables, sometimes with credit insurance. Pricing differs from domestic. Confirm at application if export is material.
- Can I get invoice finance with 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 but flexibility is greater.
- What sectors are hardest for invoice finance?
- Construction (because of retentions and pay-when-paid), B2C, and businesses with heavy stage-payment contracts are the hardest. Specialist sector lenders cover these cases but with lower advance rates.
- How quickly can invoice finance be set up?
- Initial set-up typically 1–3 weeks (legals, debtor verification, ledger review). After set-up, individual invoices fund within 24–48 hours of being raised.