Invoice discounting eligibility depends on the provider, your business and the invoices it is being asked to fund. There is no single turnover threshold that applies to every facility. Providers consider whether customers are likely to pay, as well as your business performance and ability to manage collections.
Start with the trading model
The starting point is whether you have genuine, unpaid invoices for goods or services already supplied. A forecast sale, unsigned contract or pro forma invoice is a different funding proposition. Businesses paid immediately by consumers generally have a different need from businesses invoicing other organisations on credit terms.
Turnover and trading history
Check each provider's current criteria rather than treating a generic threshold as universal. For one concrete example, NatWest's invoice-finance page states a minimum annual turnover of £300,000. Other providers and selective products may differ. Turnover by itself does not establish approval.
Debtor-book quality
- How much is outstanding and how much is overdue?
- What proportion is owed by the largest customer and connected entities?
- How often are invoices disputed, returned, credited or offset?
- Are customers in the UK or overseas, and in which currencies?
- Is there clear evidence of delivery and customer acceptance?
Your credit-control capability
Discounting leaves collections with your business. Show a reliable process for statements, reminders, dispute management and receipt allocation. A provider may be concerned if the ledger is materially out of date, even when headline sales are growing.
Existing borrowing and security
Identify existing facilities, charges and restrictions before seeking a new agreement. A lender may need a release, waiver or priority arrangement. Do not assume two funders can safely advance against the same invoice. Provide complete information so a proposed structure can be checked properly.
A self-assessment exercise
Take your latest aged-debtor report and mark disputed invoices, overdue balances, overseas customers and connected parties. Add evidence of collection on recent invoices. Then ask the provider to identify what it would accept, at what percentage, and subject to which reserves. This gives you a practical estimate of the funding your invoices could support.
If you fall outside a provider's criteria
Ask whether the obstacle is the business, the customer risk, the contract, the amount or the collections process. Another provider may have a different policy, but repeatedly applying without understanding the issue is unlikely to help. Selective finance, factoring, a working-capital facility or better payment terms may be alternatives.
This page and the readiness tool give general preparation guidance. They do not make a credit decision or confirm that funding is available.
Sources and verification
Published material checked on 24 October 2026. Provider terms can change; confirm them before applying. Examples and comparison methods are our own illustrations.
