Aldermore Invoice Finance Review
Aldermore is a modern retail bank founded in 2009, primarily focusing on providing services to small-to-medium sized businesses in the UK. They have built a steady reputation amongst businesses as a trusted bank that offers flexible Invoice Finance products and straightforward services.
Aldermore has supported 37,000 SMEs in the UK in funding worth £2.2 billion. They provide specialist finance covering Invoice Finance solutions such as Invoice Factoring and Invoice Discounting, as well as Asset Finance and Trade Finance.
In 2016, Aldermore reported an Operating Income of £267 million, and valued their Total Assets at £8.3 billion.
So, let’s get into our review of Aldermore Invoice Finance.
Aldermore provides specialized Invoice Finance and Asset Finance solutions that are tailored to meet the needs of your business. They are upfront about costs and contracts, which can be discussed with a personal Relationship Manager in order to match your needs.
Aldermore Invoice Finance offerings include:
- Tailored Invoice Factoring and Discounting solutions
- Locally-based experts
- Transparent costs
- Approval rate of 90% on all applications
- Flexible approach
Aldermore has the funding capabilities of a large bank, with the fast and efficient services of a smaller provider. In October 2017, Aldermore was acquired by FirstRand – a South African banking conglomerate. With FirstRand’s additional resources and expertise, Aldermore will soon be able to provide a wider breadth of services to UK businesses.
Aldermore Invoice Finance Costs and Fees
Aldermore has straightforward fees and repayment terms, which depend on factors such as your business size, funding needs, and the Invoice Finance product you choose to use. At the very least, you can expect to face a service fee and a discount fee.
Aldermore’s Invoice Finance services fees are it’s typically 0.25% to 3% of your annual turnover. It will be automatically deducted from Aldermore’s final cash installment to you, which happens when your customer settles their invoice.
The discount fee is basically an interest rate on the the money Aldermore lends to you. You continue paying the discount fee until the invoice is settled. Payment terms depend on your agreement with Aldermore, so be sure to contact a customer representative to receive an accurate quote.
Aldermore Invoice Finance Products and Services
Aldermore offers a variety of Invoice Finance and Asset Finance solutions that allow you to access immediate working capital for your business. Their products and services include Invoice Factoring, Invoice Discounting, Asset-Based Lending, Construction Finance, and Trade Finance.
Aldermore Invoice Factoring
Aldermore’s Invoice Factoring provides you with up to 90% of your invoice value within 24 hours of submitting your invoice to them. Aldermore buys your invoices and advances you the majority of their cash value, granting you access to funds that you’d normally have to wait up to 90 days to receive from your clients. Once your client settles their invoice, the remaining funds are sent to you, minus fees.
Aldermore Invoice Factoring is available for businesses with annual turnovers of at least £250,000, and is a popular choice if you want to focus on your day-to-day operations while Aldermore handles your credit control and collections.
Bad Debt Protection is also offered with all of Aldermore’s Business Finance solutions, but we will cover that later in the review.
Aldermore Invoice Discounting
Aldermore Invoice Discounting is similar to Invoice Factoring because you can also access up to 90% of your invoice value within 24 hours. However, it is a more discreet method of Invoice Finance because your customers won’t know of your relationship with Aldermore. You manage your own credit control and debt collection, so Aldermore has no interaction with your customers.
If you need working capital that’s tied up in your invoices, but prefer to handle your own credit control and collections, then Invoice Discounting is a great option. Invoice Discounting is suitable for larger businesses with established credit management processes, that don’t need Aldermore’s assistance in this area.
Asset-Based Lending is an alternative funding solution where Aldermore uses your assets as security against the money they lend you. It is ideal for medium to large businesses that have high-value assets such as machinery or vehicles.
Aldermore Asset Finance can provide the funds to help you with business expansion, mergers and acquisitions, or other large working capital needs.
Aldermore offers sector-specific solutions to directly address the unique problems facing your business. If you’re in the Construction sector, then you understand the importance of having enough working capital to fund existing and future projects.
Aldermore has an extensive track record with contractors, and can offer an expert team to help grow your business. They only require that you have an annual turnover of £250,000 or more, and are a contractor or sub-contractor in the Construction sector.
Trade Finance is another form of Invoice Finance, and is suitable if you need to purchase goods from domestic or international suppliers. Aldermore pays for the goods you need to import, and you can repay them (plus a fee), over an agreed-upon period of time.
With Trade Finance, you’ll be able to purchase necessary goods in order to satisfy customer orders, expand your business, and increase your sales.
Bad Debt Protection
Aldermore offers Bad Debt Protection as an additional feature for your Invoice Finance solution. Bad Debt Protection can protect up to 95% of your outstanding debt, just as long as the balance exceeds £500. You can choose to protect your entire sales ledger or a few select customers, and what’s more, Bad Debt Protection can cover both UK and Export customers.
It’s an extra layer of security that gives you some peace of mind, because your finances will be protected against the impact of your customer failing to settle their invoice.
Aldermore Invoice Finance Customer Support
Aldermore’s Customer Support can be reached through email or telephone support during regular business hours. If you call or email them in out-of-office hours, they guarantee a response within the next working day. Aldermore is committed to being customer-focused and providing the best possible service.
If you’re interested in Aldermore Invoice Finance solutions, you can even call or drop-in to one of their regional SME offices in Leeds, Manchester, Birmingham, Surrey, Peterborough, Reading, and Banbury. Aldermore’s locally-based networks are readily available to address your funding and business needs.
As an Invoice Finance client, Aldermore is also able to offer you a dedicated Relationship Manager. They will be your main point-of-contact throughout your contract, and will give you day-to-day support and advice.
Aldermore Invoice Finance Contracts
Aldermore offers a variety of contracts that are tailored to match your business needs.Contracts will vary depending on factors such as your business size, funding needs, and industry sector.
In order to receive an idea of what contracts are available to you, be sure to get in touch with a customer representative receive an accurate quote.
Aldermore Invoice Finance Reputation
Aldermore is one of the only Invoice FInance providers to publish their unbiased ratings and reviews directly on their website. Their Invoice Factoring service currently has a 4.6 out of 5 rating, indicating that most customers have been satisfied with their experience. In general, their reviews praise Aldermore’s ability to ease the stress of running a small business through their quick responses and helpful service.
Although they are a bank, Aldermore’s customers don’t experience the negative issues found in other major financial institutions such as unhelpful customer support and unpersonalized service. Aldermore maintains that they are customer-driven and SME-friendly, a claim that is reflected in their positive customer reviews.
Comparing Aldermore Invoice Finance
Aldermore is one of the top Invoice Finance providers in the UK. They have a large pool of resources and experience, which makes their service comparable to other banks such as RBS, Lloyds, Barclays, and Metro Bank.
|Invoice Financing Providers||Aldermore||RBS||Lloyds||Barclays||Metro Bank SME Finance|
|Cash Advance||Up to 90%||Up to 90%||Up to 90%||Up to 90%||Up to 85%|
|Time to Receive Funding||Within 24 hours||Within 24 hours||Within 24 hours||Within 24 hours||Within 24 hours|
|Annual Turnover||Min. £250,000||£250,000 – £6.5 million||Min. £50,000||Min. £500,000||Not specified|
|Contract||Not specified||Not specified||6 month trial followed by tailored contract||Not specified||Not specified|
|Bad Debt Protection||Offered||Offered||Offered||Offered||Offered|
Aldermore compares well to its competitors, as it’s able to offer a cash advance of up to 90% invoice value, and is able to tailor your contract to suit your needs. Although their minimum requirement for annual turnover is not the lowest, it’s important to note that £250,000 is the typical minimum annual turnover to qualify for Aldermore Invoice Factoring.
Should You Use Aldermore Invoice Finance?
Aldermore is a SME-friendly Invoice Finance provider that offers client-tailored solutions for multiple industry sectors such as business services, distributors, recruitment, importers, wholesalers, and manufacturers. They approve 9 out of 10 applications and support high growth businesses.
Because Aldermore is client-focused, their flexible contracts and solutions are built around your needs. They also offer locally-based experts in various regional offices, who can offer business guidance and support. If you’re a UK business in need of alternative financing and excellent service, Aldermore Invoice Finance is a solid option.
Aldermore Invoice Finance
Aldermore is a retail bank that offers excellent Invoice Finance services to a wide range of industries. They are customer-driven and securely managed to deliver simple yet effective solutions for UK businesses. Their dedicated Relationship Managers take a personal approach to building a successful long-lasting relationship with you. They offer day-to-day support and expert advice in order to help you achieve your business goals.
Aldermore ensures that their entire Invoice Finance process is transparent and straightforward, with clear terms and no hidden fees. They can offer you the funding capabilities of an established bank, with the dedicated customer support of a smaller provider.
If you’re interested in finding out more about Aldermore’s Invoice Factoring or receiving a quote, be sure to reach out to a customer representative either by phone or email.