Metro Bank invoice finance: what it offers, what it costs and who it suits

Metro Bank offers invoice finance to limited companies that sell to other businesses on credit. This includes factoring, invoice discounting and, for bigger facilities, asset-based lending. The bank advances up to 90% of an invoice, typically within 24 hours, and agrees fees upfront.

The 24-hour advance only starts once your facility is in place. Metro says set-up takes two weeks at the quickest and 3–6 weeks on average, so its invoice finance suits an ongoing gap between invoicing and getting paid, not a bill that's due this week. (Source: Metro Bank invoice finance FAQ, checked on 12 October 2026.)

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Metro Bank invoice finance at a glance

Here's what Metro Bank offers regarding invoice finance, according to its website and information sheet, checked on 12 October 2026:

If you're new to how invoice finance works, our general guide covers the basics.

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Exploring Metro Bank's invoice finance products in more detail

Let's take a look at each of Metro Bank's invoice financing solutions, including factoring, discounting and asset-based lending:

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Invoice factoring

With factoring, Metro runs your sales ledger and chases your customers for payment. The bank says it suits smaller businesses in the early stages of growth.

Its credit control comes from a UK-based specialist team. Your customers will know Metro is involved, because they pay Metro directly. Read more about invoice factoring in general.

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Invoice discounting

With invoice discounting, you keep control of your sales ledger and credit control, and your customers aren't told Metro Bank is involved.

Metro describes it as better for larger businesses that already have established credit control. You get the same cash flow benefit as factoring. Our guide to invoice discounting explains how it works across lenders.

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Small Business Offering

Metro's 2022 information sheet describes a simpler package for new and smaller businesses: funding lines up to £100,000, one single service fee and no discount fee. It isn't on Metro's current product page, so ask whether it's still available.

The same sheet says the package has no minimum fees. Check this with Metro's team before you plan around it. (Source: Metro invoice finance information sheet, dated July 2022, checked on 12 October 2026.)

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Asset-based lending

Metro's asset-based lending lends against your debtors, stock, plant and machinery and commercial property, with a minimum facility of £2m. Every facility includes an invoice finance element. Contracts typically run for 1–5 years.

Metro agrees advance rates for each asset case by case. (Source: Metro asset-based lending page, checked on 12 October 2026.)

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How does Metro Bank invoice finance work?

Once your facility is set up – two weeks at the quickest, 3–6 weeks on average – you upload invoices and draw up to 90% against them, typically within 24 hours. Your customer then pays Metro, and Metro pays you the rest, minus its fees.

Here's a summary of the key steps:

1. Set-up: Metro's team agrees your facility, fees and documents with you. A Business Development Director advises on timescales.
2. Invoice your customer: you send an invoice to a business customer as usual.
3. Upload it: you upload invoices to Metro's portal, by hand or automatically from your accounting system.
4. Draw funds: Metro makes up to 90% of the invoice value available to draw.
5. Collection: with factoring, Metro chases payment. With invoice discounting, you do.
6. Balance paid: your customer pays Metro, and Metro pays you the remaining balance, minus its fee.

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How much does Metro Bank invoice finance cost?

While Metro doesn't publish its rates, you'll pay a daily discount fee on the money advanced and a service fee on each invoice you raise, and Metro agrees both with you upfront.

• Discount fee: charged daily on the amount advanced. Metro's rates are variable.
• Service fee: a percentage of each invoice you raise, which varies with your turnover. It applies to all the invoices you notify.
• Other fees: if arrangement or disbursement fees apply, Metro says it agrees those upfront too.

Metro has also run an offer that cuts the discount margin for six months for new invoice finance customers who switch their business account to Metro. Its terms are dated from April 2025, so check with Metro whether it's still open. (Sources: Metro invoice finance page and incentive terms, checked on 12 October 2026.)

To compare like for like, ask every provider for the total cost on a typical month of your invoices, not just the headline percentages.

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Who is eligible for Metro Bank invoice finance?

Metro's invoice finance is for businesses that sell goods or services to other businesses on credit terms, and its information sheet names limited companies. Every facility is subject to credit approval, and Metro says security may be required.

Below are the basic eligibility details you need to know:

• Business customers only: you need invoices owed by other businesses.
• Credit approval: Metro assesses your business and your customers' invoices.
• Security: Metro's terms refer to guarantors and indemnities, so ask whether your directors will need to give a personal guarantee or indemnity before you apply.
• No Metro account needed: you don't have to open a Metro business current account to apply.

Metro doesn't publish a minimum turnover or trading time for invoice finance, so ask its team if there are any thresholds.

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What happens if your customer doesn't pay?

If a customer hasn't paid within the agreed period – typically 90–120 days – you repay Metro for that invoice yourself. You can add Metro's bad debt protection, which covers you if a customer becomes insolvent or doesn't pay, subject to its terms.

Bad debt protection is an extra service on top of factoring, invoice discounting or asset-based lending. Metro suggests it for trading with new or unknown customers, or overseas. (Source: Metro invoice finance page, checked on 12 October 2026.)

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Who Metro Bank invoice finance suits and who it doesn't

Metro's invoice finance suits a business with a steady flow of invoices to business customers on long payment terms that wants an ongoing facility. It's a poor fit for a one-off cash gap, for businesses that largely sell to consumers or if you need money this immediately.

It may suit your company if:

• You invoice other businesses regularly and wait weeks to get paid.
• You want funding that grows with your sales.
• You'd like Metro to run credit control (factoring), or you already run it well (invoice discounting).
• You value a short exit: 28 days' notice.
• You'd like a named relationship manager at a bank.

It's less suitable if:

• You need cash in days and don't have a facility yet. Set-up takes 3–6 weeks on average.
• Your gap is a one-off, such as a single late payment or a tax bill.
• You mostly sell to consumers, so you have few business invoices to fund.
• You want to see prices before you speak to anyone. Metro agrees rates one to one.

Metro is one of several banks and specialist lenders offering invoice finance. An invoice finance broker can compare Metro's offer with others for your business.

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Alternatives to Metro Bank invoice financing

Metro Bank’s invoice finance products are a solid choice for businesses looking to improve cash flow using unpaid invoices, especially those that would benefit from outsourced credit control.

However, there are several alternatives to consider, such as:

• Working capital loans: These are short-term finance options that provide timely capital when you need it, to plug cash flow gaps, pay tax bills, purchase inventory and assets or ramp up promotional activity. They are typically unsecured loans, which provide quick access to funds and flexible repayment terms, without the need for collateral.
• Merchant cash advances (MCAs): These are a form of revenue-based funding where loans are repaid as a percentage of future card sales. As MCAs scale with your performance, repayments are lower in slower periods and higher as your revenues increase.
• Business lines of credit: Using a line of credit gives you flexibility to draw down funds up to an agreed limit, as and when you need working capital,  and you only pay interest on what you use. It’s a revolving credit facility, so you can top up once you’ve repaid the funds borrowed for ongoing cash flow needs and when key operational expenses are required.

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How about a flexible business loan? Invoice finance vs Flexi-Loans?

If your cash gap comes from invoices every month, invoice finance is usually the better route: the funding grows with your sales and it's built around your ledger. However, while iwoca doesn't offer invoice finance, our Flexi-Loans suits short-term, one-off cash gaps where setting up a facility would be overkill.

Here's a handy comparison:

A Flexi-Loan is a business loan with flexible repayment options for UK limited companies: you can borrow up to £1m and draw what you need up to your limit. You'll need a personal guarantee from at least one director. That director can be asked to repay if the company can't, so weigh that up before you apply.

Short gaps still matter. Victoria Simpson, founder of VCare24, uses iwoca to cover payroll while she waits for local authority clients to pay: "It might be just a two or three day gap. But when you've got payroll running at that level, two or three days matters."

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How to apply to Metro Bank for invoice finance

You can apply by asking for a call back from Metro's invoice finance team through the contact form on Metro's website. The team then talks you through what info they need from you.

Metro says the documents required vary, but expect to share the following:

• Basic information about your business
• Your sales ledger
• Details of the goods or services you provide

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Frequently asked questions

Is SME Invoice Finance Ltd part of Metro Bank?

Yes. SME Invoice Finance Limited (company number 03591079) is the Metro Bank PLC subsidiary behind its invoice finance. Metro bought it in August 2013 and later branded it Metro Bank SME Finance. (Sources: Metro press release and Metro's information sheet.)

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Do I need a Metro Bank business account?

No. Metro says you don't have to open a Metro business current account to apply for invoice finance. It has run a reduced-margin offer for new customers who also switch their account, so ask whether that's still available.