In London’s dynamic business ecosystem, access to fast, reliable funding can be the difference between stagnation and growth. This is where invoice discounting companies come in providing businesses with immediate cash by unlocking funds tied up in unpaid invoices.
These solutions are particularly valuable for B2B firms with long payment cycles, helping them maintain smooth operations without resorting to loans.
The London market hosts a range of top-performing invoice discounting providers, each offering distinct features, flexible terms, and scalable funding packages.
From fintech firms offering instant, selective invoice discounting to traditional financial institutions known for stability and customer relationships, there is a provider for every type of business. Below is a carefully curated list of the top 10 invoice discounting companies in London, designed to help business owners make informed, confident decisions.
Why Is Invoice Discounting Gaining Momentum Among UK Businesses?
As UK businesses strive to maintain healthy cash flow in a competitive and uncertain economy, invoice discounting has emerged as a powerful financial solution. Especially in London, where small and medium-sized enterprises (SMEs) make up a significant portion of the business landscape, the need for immediate working capital often outweighs traditional lending methods.
Invoice discounting allows companies to unlock the value of unpaid invoices without waiting 30 to 90 days for customer payments. This quick injection of cash enables businesses to cover operational expenses, invest in growth, and stay agile in fast-moving markets.
Unlike invoice factoring, where customers may be aware of the finance arrangement, invoice discounting often remains confidential, maintaining the business’s control and client relationships.
Over the past few years, especially in the post-pandemic economy, this financing model has seen exponential adoption across industries such as manufacturing, retail, logistics, and creative services.
What Are the Key Benefits of Using Invoice Discounting in 2025?
In 2025, invoice discounting continues to offer strategic benefits to businesses in the UK that seek financial independence and agility. The most compelling advantage is improved cash flow. Instead of being constrained by long payment terms, businesses can access funds tied up in receivables, empowering them to take on new contracts, meet payroll, or manage operational costs with confidence.
Another advantage lies in its confidentiality. With invoice discounting, customers remain unaware that a third party is involved, preserving the company’s professional image. Additionally, businesses retain control over their sales ledger and collection process, allowing them to manage customer relationships directly.
The flexibility of this solution makes it ideal for fast-growing businesses, seasonal operations, or those undergoing transitional phases. Providers now offer tailored solutions, such as selective invoice discounting, which allows firms to choose which invoices to finance, making the process more strategic and cost-effective.
Which Are the Top 10 Invoice Discounting Companies in London?
1. Bibby Financial Services – “Funding What’s Next”
Bibby is one of the UK’s most trusted independent financial services providers, delivering tailored invoice discounting solutions for over four decades. With a strong base in London, Bibby supports SMEs with turnovers starting from £500,000, across sectors like manufacturing, recruitment, transport, and construction.
They offer confidential invoice discounting, where the business maintains full control over client relationships. A dedicated account manager ensures ongoing support and fast response times.
Bibby is FCA-authorised and known for its personalised approach, making it a preferred choice for businesses that want a long-term funding partner. Clients also benefit from value-added services, including foreign exchange and bad debt protection.
Specialty – Legacy
Over 40 years of experience and deep sector knowledge create highly tailored solutions.
Best For – Reliability Seekers
Ideal for established SMEs that need consistent funding and strategic guidance.
Pricing: Customised based on turnover and contract length
- Website: https://www.bibbyfinancialservices.com
- Phone: 0808 501 6462
- Address: 5th Floor, Ealing Cross, 85 Uxbridge Road, London W5 5TH
- Email: info@bibbyfinancialservices.com
Review: ★★★★☆
“Professional and approachable team. They’ve helped us scale operations with dependable support.”
2. Kriya (formerly MarketFinance) – “Funding Made Simple”
Kriya is a leading fintech platform based in London offering fast, flexible selective invoice discounting. Formerly MarketFinance, Kriya has helped thousands of UK businesses improve cash flow with same-day funding. Their digital platform is intuitive and integrates easily with accounting tools like Xero and QuickBooks.
Businesses can choose individual invoices to discount without locking into long-term contracts. Kriya is FCA-regulated and backed by leading institutional investors.
The platform supports B2B businesses with turnovers starting at £100,000, and clients benefit from transparent pricing and real-time approvals. Kriya combines speed, control, and simplicity in a single finance dashboard.
Specialty – Simplicity
User-friendly platform enabling fast, flexible access to working capital.
Best For – Digital Natives
Perfect for startups and SMEs that prefer managing finance online.
Pricing: From 0.5% per invoice; no setup fees
- Website: https://www.kriya.co
- Phone: 0800 180 4992
- Address: 48-49 St John Street, London EC1M 4DG
- Email: support@kriya.co
Review: ★★★★☆
“Everything is handled online smooth, transparent, and impressively fast.”
3. Close Brothers Invoice Finance – “Strength You Can Count On”
Part of the Close Brothers Group, this firm provides confidential invoice discounting to London-based businesses with turnovers starting at £750,000. Known for their relationship-led approach, Close Brothers assigns a dedicated manager to each client, offering tailored support and strategic funding options.
Their London office services a wide range of industries including logistics, construction, and professional services. Clients maintain control of their sales ledger, ensuring customer relationships remain intact.
With FCA regulation, strong financial backing, and over 30 years in operation, Close Brothers stands out for its trusted and conservative approach to business finance.
Specialty – Stability
Traditional banking reliability combined with personal client support.
Best For – Large SMEs
Best suited to well-established firms with structured finance needs.
Pricing: Tailored based on risk profile and facility size
- Website: https://www.closeinvoice.co.uk
- Phone: 0808 159 9310
- Address: 10 Crown Place, London EC2A 4FT
- Email: info@closeinvoice.co.uk
Review: ★★★★☆
“They offer big-bank strength with boutique-style support a rare combination.”
4. HSBC Invoice Discounting – “Empowering Business with Working Capital”
HSBC is one of the UK’s most recognised banks offering confidential invoice discounting through its business banking division. Their London services cater to firms with a minimum turnover of £500,000.
With HSBC, businesses benefit from strong financial infrastructure, competitive rates, and an established reputation for compliance and governance.
Clients retain control over collections while receiving up to 90% of invoice value upfront. HSBC also integrates invoice finance with broader business banking services like trade finance and overdraft facilities. This makes it a go-to solution for businesses seeking an all-in-one financial partner.
Specialty – Institutional Trust
Combines traditional banking services with scalable cash flow solutions.
Best For – Corporate SMEs
Well-suited for firms that want full-service business banking with invoice finance.
Pricing: Customised per business relationship
- Website: https://www.business.hsbc.uk
- Phone: 0345 604 6213
- Address: 8 Canada Square, Canary Wharf, London E14 5HQ
- Email: businessfinance@hsbc.com
Review: ★★★★☆
“Reliable support, great for integrating invoice finance with other banking products.”
5. Novuna Business Cash Flow – “Fast, Flexible, Focused”
Previously Hitachi Capital, Novuna delivers agile and digital-led invoice discounting through a team of experts in London and beyond. Serving businesses with turnover starting at £250,000, Novuna offers confidential facilities that are supported by real-time online account management.
The company prides itself on fast decisions, with onboarding possible in just days. Their streamlined digital processes, combined with human support, make them a flexible alternative to mainstream lenders. Clients maintain customer relationships and receive up to 90% of the invoice value almost instantly. Novuna is ideal for companies undergoing rapid change or expansion.
Specialty – Acceleration
Speed of funding and decision-making sets them apart in urgent situations.
Best For – Fast-Growing Firms
Ideal for businesses scaling quickly and needing real-time working capital.
Pricing: Competitive; case-specific
- Website: https://www.novuna.co.uk
- Phone: 0808 250 0859
- Address: 2 More London Riverside, London SE1 2AP
- Email: businesscashflow@novuna.co.uk
Review: ★★★★☆
“Easy onboarding, fast payouts exactly what we needed during expansion.”
6. Paragon Bank Invoice Finance – “Flexible Funding for Forward-Thinking Businesses”
Paragon Bank offers tailored invoice discounting solutions for SMEs across London, designed to provide stable and flexible working capital support. Their facilities allow businesses to unlock up to 95% of invoice value and maintain full responsibility for customer credit control.
Paragon’s London-based team works closely with clients to understand cash flow cycles and create scalable funding packages that adapt as the business grows.
They specialise in supporting firms in manufacturing, distribution, and professional services. Paragon is FCA-regulated and known for transparent pricing with no hidden charges. Their secure digital portal provides real-time access to balances and transactions for smoother operations.
Specialty – Adaptability
Highly customisable invoice finance facilities tailored to fluctuating business needs.
Best For – Consistent Traders
Ideal for businesses with steady invoice volumes seeking predictable funding.
Pricing: Based on facility size and turnover; transparent and tailored.
- Website: https://www.paragonbank.co.uk
- Phone: 0800 197 6065
- Address: 51 Homer Road, Solihull, B91 3QJ (serves London clients)
- Email: businessfinance@paragonbank.co.uk
Review: ★★★★☆
“A transparent, professional service Paragon made managing our cash flow incredibly simple.”
7. Begbies Traynor Group – “Specialists in Cash Flow Recovery and Stability”
Begbies Traynor Group provides invoice discounting solutions as part of its wider business recovery and advisory services. Their London team focuses on companies experiencing cash flow issues, trouble with late payments, or short-term funding gaps.
They connect businesses with suitable lenders and also structure confidential invoice discounting arrangements for firms needing immediate liquidity. Their strength lies in supporting companies under stress, providing both financial insight and practical solutions.
Begbies Traynor works with businesses across construction, retail, logistics, and recruitment. Their London experts tailor facilities to help stabilise operations and restore working capital quickly.
Specialty – Turnaround
Expertly crafted financial solutions for businesses facing cash pressure or restructuring.
Best For – Distressed Firms
Suited for companies needing recovery-focused invoice discounting support.
Pricing: Dependent on lender and business circumstances
- Website: https://www.begbies-traynorgroup.com
- Phone: 020 7516 1500
- Address: 31st Floor, 40 Bank Street, Canary Wharf, London E14 5NR
- Email: info@begbies-traynorgroup.com
Review: ★★★★☆
“They stepped in when our cash flow was tightening quick solutions and excellent guidance.”
8. FundingBay – “Your Gateway to the Best Invoice Finance Deals”
FundingBay is a London-based finance comparison platform that helps businesses find the most competitive invoice discounting providers in the UK. Rather than funding invoices directly, FundingBay analyses your business profile and matches you with suitable lenders from their trusted panel.
They work with banks, fintech lenders, and independent providers to secure the most favourable terms. Their specialist advisors guide businesses through the application process, ensuring clarity on fees and facility structure. FundingBay is particularly beneficial for SMEs unfamiliar with invoice finance or those seeking to compare multiple quotes quickly. Their guidance simplifies decisions for businesses across all sectors.
Specialty – Brokerage
Expert matching service connecting businesses with handpicked invoice finance providers.
Best For – First-Time Applicants
Ideal for businesses comparing lenders or unsure which facility type is the best fit.
Pricing: Free to business owners; lenders pay commission
- Website: https://fundingbay.co.uk
- Phone: 0203 143 1470
- Address: 2 Stephen Street, London W1T 1AN
- Email: info@fundingbay.co.uk
Review: ★★★★☆
“They helped us compare several lenders and saved us hours excellent, unbiased advice.”
9. Invoice Factoring Quotes London – “Find the Best Invoice Finance in Minutes”
Invoice Factoring Quotes is a specialist comparison service dedicated to helping London-based businesses find invoice discounting and factoring solutions. They collaborate with top UK lenders to provide quick, competitive quotes based on a business’s turnover, industry, and funding needs.
Their team reviews your requirements and pairs you with the most suitable lenders, ensuring transparency around fees and contract terms.
Although not a lender themselves, they offer deep knowledge of the London finance market and simplify the entire application process. This service is especially valuable for smaller firms or businesses seeking alternatives to bank finance.
Specialty – Comparison
Provides tailored invoice discounting matches from a wide panel of trusted UK lenders.
Best For – Micro & Small Businesses
Ideal for firms seeking easy access to multiple lender quotes without fees.
Pricing: Free comparison; lender pricing varies
- Website: https://www.invoicefactoringquotes.co.uk/london
- Phone: 0800 612 9488
- Address: 124 City Road, London EC1V 2NX
- Email: info@invoicefactoringquotes.co.uk
Review: ★★★★☆
“Quick, simple, and very helpful we found the right lender within a single day.”
10. Skipton Business Finance – “Supporting the Backbone of British Business”
Skipton Business Finance provides flexible invoice discounting solutions for SMEs across the UK, with a strong presence in London. As part of the Skipton Building Society, Skipton delivers financial stability alongside accessible, SME-friendly funding.
Their invoice discounting facilities start from as low as £50,000, making them ideal for younger or smaller businesses. Skipton is known for its personalised service, assigning specialists to understand each client’s cash flow patterns and growth needs. They offer both confidential and disclosed discounting options, ensuring versatility. Their clear pricing and reduced complexity make them appealing to businesses seeking transparent finance.
Specialty – Flexibility
Adaptable solutions designed for early-stage and expanding SMEs.
Best For – Small Businesses
A strong choice for London SMEs seeking supportive, relationship-based invoice finance.
Pricing: Based on business size, sector, and invoice volume
- Website: https://www.skiptonbusinessfinance.co.uk
- Phone: 020 3393 6488
- Address: 1 Cornhill, London EC3V 3ND
- Email: info@skiptonbf.co.uk
Review: ★★★★☆
“They made the process straightforward ideal for smaller companies like ours.”
How Can You Choose the Right Invoice Discounting Partner?
Selecting the right invoice discounting company goes beyond comparing interest rates or fees. It involves understanding your business’s unique cash flow needs, industry challenges, and growth objectives. For companies based in London, proximity and personalised support are often important considerations.
Start by assessing the flexibility of the provider. Some companies offer selective invoice discounting, where you choose which invoices to finance, while others require whole-ledger arrangements. Make sure the provider is regulated by the Financial Conduct Authority (FCA) and has positive reviews on platforms like Trustpilot or Google Business.
Customer service is another critical factor. A responsive and knowledgeable account manager can be the difference between a seamless experience and a stressful one. Finally, examine any hidden fees or lock-in periods before signing an agreement to avoid long-term limitations.
What Are the Differences Between Invoice Discounting and Factoring?
Though often confused, invoice discounting and factoring differ significantly. In invoice discounting, the business retains control over its sales ledger and debt collection, and the arrangement remains confidential from clients. This method suits companies that have in-house credit control teams and want to maintain customer relationships.
Invoice factoring, on the other hand, involves the finance company managing the sales ledger and chasing payments. While this relieves the business of collection tasks, it also exposes the funding relationship to customers.
Generally, factoring is more suitable for smaller or newer businesses with limited resources, while discounting suits more established companies with strong credit control systems.
Is Invoice Discounting Safe and Secure for London-Based SMEs?
Invoice discounting is generally considered a safe financing option when done through regulated providers. Most leading firms in the UK are authorised and regulated by the FCA, ensuring compliance with financial standards and consumer protection laws.
Security also extends to data protection. Reputable companies use encryption and secure portals to manage invoices and payments. However, businesses must still perform due diligence. Read the terms of the agreement carefully and ensure you understand any recourse in the event of customer non-payment.
While the risks are low, they are not non-existent. Relying too heavily on invoice finance without proper cash flow forecasting can cause future funding gaps, so it should be used as part of a broader financial strategy.
What Other Business Funding Options Should You Compare With Invoice Discounting?
Although invoice discounting is a valuable tool, it may not be the best solution for every business. Alternatives include traditional business loans, asset-based lending, merchant cash advances, and overdraft facilities.
For example, a business with no outstanding invoices but needing capital may benefit more from an unsecured loan. Similarly, merchant cash advances are suitable for firms with strong card sales but limited receivables.
Understanding your business model, revenue streams, and future plans is key to selecting the right funding solution. In many cases, invoice discounting can work in tandem with other financial tools to provide a comprehensive funding package.
Where Can You See Real Customer Feedback on Invoice Finance Firms?
Customer reviews are an invaluable resource when evaluating invoice discounting providers. Platforms like Trustpilot, Google Business, and Feefo offer real-world insight into how companies operate, support clients, and resolve issues.
Look for recurring themes in reviews. Positive mentions of ease of use, speed of funding, and helpful account managers are indicators of a well-run company. On the other hand, consistent complaints about hidden fees or poor communication should raise red flags.
Many of the top companies listed earlier have Trustpilot ratings above 4.0, reflecting their reputation and commitment to service excellence.
What’s the First Step for New Businesses Looking into Invoice Discounting?
If you’re new to invoice discounting, start by evaluating your current invoicing and cash flow processes. Ensure that your sales ledger is up to date, and that your invoices are accurate and professional. You’ll also need to assess your customers’ creditworthiness, as many providers base approval on your clients’ payment history rather than your business credit score.
Next, approach a few reputable providers or use brokers like Touch Financial or Rangewell to compare offers. Prepare your financial documents, such as recent bank statements, aged debtor reports, and turnover forecasts. Most companies can offer decisions within 24 to 72 hours.
Choosing invoice discounting is not just a financial step it’s a strategic move. Done correctly, it can free up capital and help your business thrive in a competitive market.
Conclusion
Invoice discounting has become a cornerstone of modern business finance in the UK, particularly in dynamic markets like London. From trusted names like Bibby Financial Services and MarketFinance to tech-forward solutions from Aldermore and IGF, businesses now have a broad range of providers to choose from.
The right partner depends on your size, industry, and financial goals. By understanding the core benefits, assessing real customer feedback, and comparing services, UK businesses can confidently use invoice discounting to fuel sustainable growth.
FAQs About Invoice Discounting Companies
What’s the difference between selective and whole turnover invoice discounting?
Selective invoice discounting allows businesses to choose individual invoices to finance, while whole turnover requires all qualifying invoices to be submitted. Selective models offer more flexibility but may come with slightly higher costs.
Do invoice discounting companies check my customers’ credit?
Yes, most providers assess your customers’ creditworthiness, as they are the ones who will eventually pay the invoices. Strong customer credit profiles increase your chances of approval.
Can startups use invoice discounting in the UK?
Some providers offer invoice discounting to early-stage companies, but most require a minimum turnover and established client relationships. Startups with B2B contracts may be eligible for selective invoice discounting.
Is invoice discounting the same as accounts receivable financing?
Yes, invoice discounting is a form of accounts receivable financing where businesses borrow money against outstanding invoices. It differs from factoring in terms of confidentiality and collection responsibilities.
How quickly can I get funds using invoice discounting?
Many providers offer funding within 24 to 72 hours of application approval. Digital-first companies may even offer same-day transfers for verified invoices.
Will my clients know I’m using invoice discounting?
Not usually. Confidential invoice discounting keeps the funding relationship hidden from your clients, maintaining your professional image and customer trust.
What types of businesses are best suited for invoice discounting?
SMEs with regular B2B invoicing cycles, such as those in manufacturing, logistics, recruitment, and creative industries, benefit the most from invoice discounting.