Why More SMEs Are Choosing Non-Bank Business Funders
In 2025, the funding landscape for UK businesses is undergoing a noticeable transformation. With a major Bank exiting the invoice factoring sector by September. Small and medium sized enterprises (SMEs) are re-evaluating how and from whom they access essential funding. A growing number are making a strategic shift to non-bank business funders like us at Partnership Invoice Finance. We are not just an alternative. We are a working capital solution for modern businesses seeking transparency, reliability, and humancentric finance.
A Changing Tide: Why Now
Historically, the default option for business funding was a bank. But change has been brewing for years. SMEs have long voiced frustration with rigid application requirements, inflexible terms, and impersonal service. As reported in recent market research and echoed in publications like DirectorsTalk, more UK SMEs are moving away from traditional routes in favour of alternative finance providers.
The decision by a major Bank to step away from invoice factoring reflects a wider trend. Unfortunately, this hinders UK businesses who need to receive payment faster, manage unpredictable payment cycles, or regain control over their cash flow.
At Partnership Invoice Finance, we step in with timely solutions, not templates. We are a team of finance professionals with real world experience, providing practical and flexible cash flow solutions for SMEs who need to keep moving forward.
What Is a Non-Bank Business Funder
A non-bank business funder is an alternative finance provider. Typically offering services such as invoice finance. Under invoice finance falls two different services:
- Recourse Factoring (includes outsourced credit control and sales ledger management).
- Disclosed Invoice Discounting.
These services allow you to convert outstanding invoices into immediate cash. Improve your working capital ratio, and reduce exposure to short term liabilities. We are not a faceless institution. We are your finance partner, and we tailor our support to meet your growth ambitions.
Why Businesses Choose Partnership Invoice Finance
A Human Approach: Every Partnership client speaks to a dedicated relationship manager. No robots. No ticket systems. When you call, we answer. It is that simple. We listen, understand your balance sheet, and respond swifty with action.
Transparent, Fair Pricing: We stand apart through our ethical finance approach. There are no hidden fees, no surprises, and no small print additional charges. We quote clearly and walk you through how your funding facility functions, so you know exactly what to expect.
Fast Access to Capital: When cash flow is tight, speed matters. Whether you are managing unpaid invoices, facing short-term cash pressure, or funding new contracts, we move quickly. You can access funds within 24–48 hours of submitting your invoices.
Tailored for Your Sector: Generic risk models do not reflect the realities of running a business. We take the time to understand your industry, from manufacturing and wholesale to recruitment or professional services. Our solutions can grow alongside your working capital cycle.
End-to-End Support – Recourse Factoring: With recourse factoring service, you gain 3rd party credit control. We oversee your debtor book and protect client relationships. Our team manages your invoices with professionalism and courtesy, supporting your reputation whilst safeguarding your income.
Why Now? What the Data Shows
According to recent research, more than 30% of SMEs are now using or actively exploring alternative finance, with invoice finance leading the way. Market insights suggest SMEs increasingly value flexibility, speed, and service.
In fact, a growing number of businesses are looking beyond traditional lending ratios and into practical solutions that get money where it’s needed. For firms dealing with negative working capital, or unpredictable cash inflows, a funding facility from Partnership Invoice Finance can even out peaks and troughs.
Should You Move Away from Traditional Lending
If you’re reading this and wondering whether to stay with a traditional bank, or to take the leap. Reflect on your business, and ask:
Are decisions being made with my business’s future in mind?
Am I able to speak with a person when I have an issue?
Could I benefit from faster access to cash and clearer terms?
If there is hesitation in your answers, it’s time to compare.
Final Thoughts: Redefining Business Finance
The rise of non-bank business funders signals a new chapter for SME finance. One built on relationships, responsiveness, and real-world results.
At Partnership Invoice Finance, we are proud to be at the forefront of this shift. Our clients do not just stay—they grow. And they stay because we deliver, time and time again.
Whether you are preparing for your current lender’s exit or simply want to explore smarter business funding options, let’s talk. We are here to support UK businesses with the tools, capital, and care they need to thrive.
FAQ: Non-Bank Business Funders and the Future of SME Finance
Q: Will I lose credibility by moving away from a big bank?
Not at all. Having strong funding in place from a trusted, ethical partner reflects confidence and forward planning.
Q: Is invoice finance only for small companies?
No. We work alongside businesses of all sizes—from startups to established enterprises.
Q: How quickly can I get started?
Our facilities can be set up in just a few days. We make decisions quickly and get to work straight away.
Q: What’s the difference between disclosed invoice discounting and recourse factoring?
Recourse factoring includes full ledger and collections support. Disclosed invoice discounting allows you to retain credit control while still accessing a pre-payment on your invoices.
We are ready when you are, contact us today for more information.
Chris Falby
With over two decades dedicated to helping businesses in the South East thrive, Chris, Sales and Marketing Director, brings a wealth of knowledge in securing financial assistance for SMEs. His career began in mainstream banking, where he gained valuable experience managing advances. This foundation, coupled with his extensive network and expertise in independent funding, allows Chris to provide tailored invoice finance solutions that meet the unique needs of each client.