Top 5 Invoice Discounting Companies UK (2026)

For established UK businesses that sell on credit terms and want to unlock cash from their sales ledger without relinquishing control of their customer relationships, invoice discounting is worth understanding in depth.

It is a confidential, finance-only product, and choosing the right provider matters more than many businesses realise. 

This guide covers what invoice discounting involves, how it differs from invoice factoring, what to look for in a provider, and profiles five invoice discounting companies currently operating in the UK market that are worth considering.

What Is Invoice Discounting?

Invoice discounting is a form of invoice finance that allows businesses to advance up to 90% of the value of outstanding invoices, typically within 24 hours of raising them, without waiting 30, 60, or 90 days for customers to pay. 

The defining characteristic of invoice discounting, and what sets it apart from invoice factoring, is confidentiality and control. With invoice discounting, the business retains full responsibility for its own credit control.

Customers continue to pay the business directly as normal, and the finance arrangement remains entirely confidential. Customers are typically unaware that any external finance provider is involved. 

This contrasts with invoice factoring, where the finance provider takes over the credit control function, contacts customers directly, and collects payments on the business’s behalf. Factoring is a managed service; discounting is a finance-only facility. 

Invoice discounting is typically suited to businesses that: 

• Sell products or services to other businesses on credit terms of 30 to 90 days 
• Have an established internal credit control function 
• Want to maintain direct, undisclosed relationships with their customers 
• Have sufficient turnover and financial stability to manage their own collections 

Because the provider is relying on the business to manage collections, invoice discounting usually requires a more established business profile than factoring, and most providers publish minimum turnover thresholds as a result. 

How Invoice Discounting Differs from a Bank Overdraft?

A business overdraft provides access to a fixed credit limit linked to a bank account. Invoice discounting is dynamic, the amount available grows automatically as the sales ledger grows.

For businesses with increasing turnover, this means working capital scales in line with the business rather than being capped at a fixed amount. It also avoids the need to use property or other personal assets as security.

Below are five invoice discounting companies operating in the UK market, covering a range of business sizes, sectors, and service approaches. 

What Are the Top 5 Invoice Discounting Companies UK in 2026?

1. NovunaBusiness Cash Flow 

Novuna Business Cash Flow is a well-established name in UK business finance, backed by Mitsubishi HC Capital UK, one of the largest asset finance groups in Europe.

Rather than operating as a direct lender for invoice discounting, Novuna acts as a comparison and broker service, helping businesses find and compare trusted invoice discounting providers, understand the terms, and apply with confidence. 

This approach has a practical advantage: rather than being matched to a single lender’s criteria, businesses can be compared across multiple providers to find the most appropriate facility for their specific circumstances, with a cash flow expert on hand throughout the process to guide the application. 

What Novuna Offers?

• A comparison and broker service for invoice discounting, helping businesses access quotes from multiple trusted UK lenders 
• Expert support throughout the process, with a dedicated cash flow specialist on hand 
• Access to invoice discounting facilities that can release up to 100% of invoice value, depending on the matched lender 
• Confidential facilities available, customers continue to pay the business directly 
• Broader working capital expertise across invoice finance and asset-based lending 
• Backed by Mitsubishi HC Capital UK, providing financial stability and sector experience 

Pricing

As a comparison and broker service, Novuna’s role is to match businesses to the most appropriate lender and facility for their needs.

Pricing will depend on the specific provider matched and the structure of the facility agreed. Speak directly with their team to discuss your requirements and compare available options. 

Best For

• UK SMEs looking for expert guidance when comparing invoice discounting providers 
• Businesses that want help navigating the market and finding the right lender for their circumstances 
• Companies that value having a cash flow specialist on hand throughout the process 

Who This May Suit?

Novuna suits businesses that want to compare invoice discounting options across multiple providers rather than approaching lenders individually, benefiting from expert support and the financial credibility of one of the UK’s most established business finance groups. 

2. Bibby Financial Services

Bibby Financial Services is one of the UK’s largest independent invoice finance providers, with over 40 years of experience and a network of offices across the country.

Their invoice discounting facility allows businesses to release up to 95% of invoice value within 24 hours, one of the higher advance rates available in the market, while maintaining full control over customer relationships and credit control. 

What Bibby Offers?

• Advance rates up to 95% of invoice value within 24 hours 
• Confidential facility – customers continue to pay the business directly 
• Eligibility: B2B businesses selling on 30–90 day credit terms, with strong credit management systems and a capable management team, financially viable for a minimum of six months 
• 24/7 online client portal 
• Bad Debt Protection available as an add-on 
• Relationship-based approach with dedicated service contacts 

Pricing

Bibby’s pricing is structured around a service charge and a discount charge, tailored to the specific business. Contact their team directly for a personalised illustration. 

Best For

• Established SMEs looking for one of the higher advance rates available on invoice discounting 
• Businesses in transport, manufacturing, construction, recruitment, and wholesale 
• Companies that want the reassurance of a large, long-established independent provider 

Who This May Suit?

Bibby suits businesses with a proven trading history that want a high advance rate and the backing of one of the UK’s most established independent invoice finance providers. 

3. Aldermore

Aldermore is a UK specialist bank offering invoice discounting with fully transparent, upfront pricing, all charges are agreed and outlined before the facility goes live, with no hidden fees.

Their facility advances up to 90% of eligible invoice value within 24 hours, with a fully confidential service, Aldermore does not contact customers on the business’s behalf. 

What Aldermore Offers?

• Up to 90% advance rate on eligible invoice value within 24 hours 
• Confidential facility – customers are unaware of Aldermore’s involvement 
• Minimum annual turnover of £750,000 
• An established in-house credit control function is required 
• Dedicated locally based relationship managers 
• Bad Debt Protection available as an add-on 
• Sectors covered include business services, distribution, recruitment, engineering, haulage and transport, importers, printers, manufacturers, and wholesalers 
• Pricing agreed upfront with clear, transparent structure 

Pricing

Aldermore’s charges are agreed upfront and outlined in the facility offer letter, with a client guide detailing any additional fees. An arrangement fee typically applies. Contact their team for a tailored quote. 

Best For

• UK businesses with turnover from £750,000 upward with established internal credit control 
• Businesses in manufacturing, engineering, distribution, and professional services 
• Companies that want bank-backed financial stability with a relationship-led service 

Who This May Suit?

Aldermore suits businesses that have the internal infrastructure to manage their own collections and want the confidence of a bank-backed provider with transparent, upfront pricing. 

4. Skipton Business Finance

Skipton Business Finance is part of the Skipton Group and stands out for being accessible to a wider range of business sizes than many invoice discounting providers, including smaller businesses that may find entry requirements elsewhere too restrictive.

Their facility advances up to 90% of invoice value, is fully confidential, and grows automatically in line with turnover without the need to renegotiate as the business expands. 

What Skipton Offers?

• Up to 90% advance rate on eligible invoice value 
• Confidential facility, businesses retain full control of their sales ledger and customer relationships 
• Confidential Invoice Discounting option available for maximum discretion 
• Facility grows in line with business turnover, no fixed cap 
• Dedicated relationship manager who understands the business 
• Available to a range of business sizes, including smaller and newer businesses that may find access harder with other providers 
• Backed by the Skipton Group – stable, mutual funding structure 

Pricing

All facilities are bespoke. Skipton offers a free, no-obligation quote, contact their team directly to discuss your requirements. 

Best For

• UK SMEs at various stages of growth looking for a confidential invoice discounting facility 

• Businesses that want a stable, mutual-backed provider with a long track record 

• Companies needing a facility that scales automatically without renegotiation as turnover grows 

Who This May Suit?

Skipton suits businesses that value long-term stability and a relationship-driven approach, particularly those that want a provider with nearly 25 years of specialist invoice finance experience. 

5. Close Brothers Invoice Finance

Close Brothers Invoice Finance is part of Close Brothers Group, one of the UK’s leading merchant banking groups.

Their invoice discounting proposition is built around their proprietary IDeal™ platform, a real-time, automated system that reconciles invoice payments automatically and updates available funding the moment invoices are raised, without the manual reconciliation required by many traditional providers. 

What Close Brothers Offers?

• Up to 90% advance rate on eligible invoice value 
• IDeal™ platform – real-time automated reconciliation, funds available the moment invoices are raised, with 24/7 access from any device 
• Confidential service – customers are unaware of Close Brothers’ involvement 
• Minimum turnover of £750,000 for invoice discounting 
• Bad Debt Protection available as an add-on 
• Liquidity Plus facility available for businesses needing additional headroom above their standard discounting limit 
• Sector depth in recruitment, manufacturing, engineering, food and drink, and professional services 
• Winner of multiple industry awards including Business Moneyfacts (Best Service from an Invoice Finance Provider) and NACFB Invoice Finance Lender of the Year 

Pricing

Pricing is tailored to the individual business and facility. Contact Close Brothers directly for a quote. 

Best For 

• Established UK businesses with turnover from £750,000 upward that process high invoice volumes 
• Businesses in recruitment, manufacturing, engineering, and food and drink 
• Companies that want real-time automated reconciliation to reduce administrative overhead 

Who This May Suit?

Close Brothers suits businesses that want the efficiency gains of an automated, real-time discounting platform alongside the credibility of a merchant bank, particularly those processing a large number of invoices monthly where manual reconciliation would otherwise be a significant overhead. 

What to Consider Before Applying for Invoice Discounting?

Invoice discounting requires more from a business than invoice factoring, because the business manages its own collections.

Before applying, it is worth considering the following: 

• Is your credit control function genuinely robust? Providers will assess the quality of your internal credit control before offering a facility. If your collections process is inconsistent or your debtor book has a high proportion of overdue invoices, you may find discounting harder to access than factoring. 
• What advance rate do you need? Advance rates vary between 85% and 95% across the market. For businesses with high invoice volumes, the difference between an 85% and 95% advance rate can represent a meaningful amount of working capital. 
• How does pricing compare on an all-in basis? Invoice discounting pricing typically comprises a service charge and a discount charge. Always request a full illustration of all-in costs – not just the headline rate – before making a comparison. 
• Does the provider offer bad debt protection? Most providers offer Bad Debt Protection as an add-on, which protects the business if a customer becomes insolvent. For businesses with significant exposure to a small number of large customers, this is worth considering. 

Final Thoughts

Invoice discounting is a well-established and flexible working capital tool for businesses with the internal infrastructure to manage their own collections.

The five providers above each offer something slightly different, in terms of advance rates, platform capability, minimum turnover, sector depth, and pricing structure – and the right fit will depend on your specific circumstances.

It is worth speaking to more than one provider, requesting a full illustration of all-in costs, and confirming how each provider would approach the management of your specific debtor book before committing to a facility.

Frequently Asked Questions 

Will my customers know I am using invoice discounting?

No, invoice discounting is a confidential facility. Your customers continue to pay you directly in the normal way and are not aware of any finance arrangement. 

How does invoice discounting differ from invoice factoring? 

With invoice discounting, you retain full control of your credit control function and continue collecting payments from customers yourself. With factoring, the finance provider manages collections on your behalf. Discounting is confidential; factoring is typically disclosed to customers. 

What turnover do I need to qualify? 

This varies by provider and is not always published. Of the providers in this article, Close Brothers and Aldermore both require a minimum annual turnover of £750,000. Skipton Business Finance can consider smaller businesses where the quality of the sales ledger and internal credit control supports the facility – so turnover alone is not always the deciding factor. 

How quickly can I access funds? 

Once a facility is established, most providers can advance funds within 24 hours of an invoice being raised. Some providers, such as Close Brothers with their IDeal™ platform, can release funds the moment an invoice is submitted. 

Can I use invoice discounting alongside other finance? 

Yes – many businesses use invoice discounting alongside asset finance, revolving credit, or asset-based lending. Some direct lenders offer combined working capital facilities, so it is worth asking any provider you approach whether they can structure a broader arrangement to meet your needs.