Comparing The Best UK Invoice Factoring Companies
You’ve probably found that it’s a challenge to navigate between all the different Invoice Factoring companies and their specifically-tailored products.
You don’t know who the best Invoice Factoring provider is for your business, and are beginning to doubt yourself.
Your answer is right here.
The ExpertSure team taken the time to investigate all the various Invoice Factoring options in the UK, and have compiled this guide to the most popular and highly rated UK companies.
By the end of this, you’ll know exactly which Invoice Factoring company and product matches the needs of your business.
But before you get started, let’s quickly recap the basics behind choosing an Invoice Factoring company and product.
In this guide you will find
What Should You Look Out For?
It’s simple.
When deciding on the best Invoice Factoring company, keep in mind following checklist:
- Transparent Fees
- Clear Terms and Conditions
- Inclusive Credit Control and Credit Checks
- Optional Bad Debt Protection
- A Dedicated Client/Relationship Manager
- Industry Experience and Customer Testimonials
- Excellent Customer Service
If an Invoice Factoring company provides all (or at least most) of these features, then you’re all set.
Now, let’s get begin our guide to the best Invoice Factoring companies in the UK, and what services they offer.
Top 15 Invoice Factoring Companies
Bibby Financial Services
- Advance: Up to 100% of invoice within 24 hours
- Contract: Rolling contract, unlimited duration
- Bad Debt Protection: Offered
- Customer Service: 24/7 Online Service and Chat Support
Operating since 1982, Bibby Financial Services has helped over 7000 businesses using their invoice financing products, earning a reputation as one of the UK’s top independent Invoice Factoring providers
Bibby offers flexible contracts, specialist solutions, and convenience with their 24/7 Client Online service. Currently, Bibby operates in 19 Local offices in UK and Ireland, making them highly accessible for local businesses.
Find out more about Bibby Financial Services here.
Calverton Finance
- Advance: Up to 90% of invoice within 24 hours
- Annual Turnover: £250,000 – £5M
- Contract: 3 month trial period, followed by a personalised contract
- Bad Debt Protection: Offered
- Customer Service: Telephone and Email Support
Calverton Finance has a good track record with a reported 98% client satisfaction, and sector-specific support for certain industries such as recruitment agencies, wholesalers, and manufacturers.
Calverton has an extensive list of positive client testimonials, who all praise Calverton’s transparent costs and straightforward service. They tailor contracts and solutions to fit the needs of your business, and ensure that you always have the necessary working capital.
Find out more about Calverton Finance here.
RBS Invoice Finance
- Advance: Up to 90% of invoice within 24 hours
- Annual Turnover: £250,000 – £6.5M
- Bad Debt Protection: Offered
- Customer Service: 24/7 Helpline on FacFlow, their online Invoice Factoring platform
As a part of the Royal Bank of Scotland Group, RBS Invoice Finance has the resources and support of a large, trusted financial institution.
They has\ve earned the reputation of a trustworthy Invoice Factoring provider due to their dedicated debt recovery team and credit protection services. RBS has a large pool of resources, and an extensive team of industry experts who can provide you with valuable advice.
Find out more about RBS invoice Finance here.
Barclays Cashflow Finance
- Advance: Up to 90% of invoice within 24 hours
- Annual Turnover: at least £500,000
- Bad Debt Protection: Offered
- Customer Service: Telephone support
Barclays is one of the UK’s top 5 retail banks, and its Invoice Factoring services speak for themselves. They offer Invoice Financing services such as Cashflow Finance and Confidential Invoice Discounting, and a range of other business funding solutions to help businesses grow through unlocking funds owed.
You’ll have access to specialist and dedicated managers, as well as easy online access to your sales ledger and all necessary information.
Find out more about Barclays Cashflow Finance here.
Lloyds Invoice Factoring
- Advance: Up to 90% of invoice within 24 hours
- Annual Turnover: at least £50,000, with exceptions for startups
- Contract: 6 month trial period, and option to refund service fee if dissatisfied
- Bad Debt Protection: Offered
- Customer Service: Telephone Support, easy online access, and a dedicated Client Service Manager
As one of UK’s largest banks, Lloyds offers a specialist approach when it comes to Invoice Factoring. You get access to sector-specific solutions and have an ongoing point of contact with an experienced Client Service Manager.
Lloyds’ contracts are remarkably more flexible than other major banks. They offer a long trial period, followed by a personalised contract or the option to end the trial and refund the service charges.
Find out more about Lloyds Invoice Factoring here.
Metro Bank SME Finance
- Advance: Up to 85% of invoice within 24 hours
- Annual Turnover: Not specified
- Contract: No penalty if you give 28 days notice
- Bad Debt Protection: Offered
- Customer Service: Stores are open 7 days/week, as well as 24/7 Telephone, Online, and Mobile Banking
Metro Bank was formed in 2010, and was rebranded into Metro Bank SME Finance following the acquisition of the highly reputable SME Invoice Finance. They are the first UK’s high street bank to have opened in the past 150 years, and aim to be the ‘Entrepreneur’s Bank’.
They set low requirements, with startups to PLCs all eligible to apply without the need for first year accounts. Metro Bank also has tailored Small Business solutions that offer funding up to £100,000 and only one single service fee.
Find out more about Metro Bank SME Finance here.
Aldermore Invoice Finance
- Advance: Up to 90% of invoice within 24 hours
- Annual Turnover: at least £250,000
- Contract: Varies
- Bad Debt Protection: Offered
- Customer Service: Telephone Support, easy online management, and a dedicated Relationship Manager
Founded in 2009, Aldermore is a retail bank that has built a solid reputation amongst businesses as a bank that offers flexible products and straightforward service.
They offer specialized packages tailored to your business needs, with transparent upfront costs.
You also have access to an online system to easily manage your invoices and review funding availability.
Find out more about Aldermore Invoice Finance here.
Close Brothers Invoice Factoring
- Advance: Up to 90% of invoice within 24 hours
- Annual Turnover: at least £250,000
- Contract: Individually tailored to your business
- Bad Debt Protection: Offered
- Customer Service: Telephone Support, access to online platform, and a dedicated Relationship Manager
Established in 1878, Close Brothers continues to be one of the UK’s leading merchant banks and top expert in specialized markets.
With offices throughout UK, Ireland, and Germany, you can expect an undisputed level of service from them. You will have access to a relationship manager, as well as an online account where you can easily manage your funding needs and invoices.
Like most Invoice Factoring companies, Close Brothers works with businesses in the B2B sector.
Typically, they charge a 0.5% – 2% service fee and a 2.5% – 3.5% discount rate over LIBOR, although this ultimately depends on your contract.
Find out more about Close Brothers Invoice Factoring here.
MarketInvoice
- Advance: Up to 90% of invoice within 24 hours
- Annual Turnover: at least £100,000
- Contract: No minimum contract
- Bad Debt Protection: Offers add-on credit insurance from Euler Hermes
- Customer Service: Telephone and email support, easy-to-use online platform, and a dedicated Account Manager
MarketInvoice is UK’s first online marketplace for invoices, acting as an intermediary between businesses and institutional investors. Operating on a pay-as-you-go or contractual basis, their online platform is supported by the global Peer to Peer Finance Association, and has a 5-star Trustpilot rating.
Since their inception in 2011, MarketInvoice has funded £1,886,047,675 in invoices, as well as partnering with the British Business Bank to fund their invoices.
Their online platform is incredibly easy to navigate, and is available 24/7, making their service much more accessible than other invoice factoring companies.
One of the main selling points of MarketInvoice is their transparent fees, which are set at a total of 1-3% of your invoice value. They don’t require long-term contracts, and ensure that the entire process is as straightforward as possible.
However, one of their drawbacks is they don’t offer bad debt protection, and you have to take on the credit risk. This is commonly known as recourse finance (or factoring), whereby you take on the responsibility of settling the invoice if your clients are unwilling or unable to pay.
Find out more about MarketInvoice Factoring here.
Touch Financial
- Advance: 80% to 100%
- Annual Turnover: at least £250,000 (plus VAT)
- Contract: Varies
- Bad Debt Protection: Offered
- Customer Service: Telephone, live chat, and email support
As the largest independent broker in the UK for invoice finance, Touch Financial has an impressive resume, with working relationships alongside 75% of invoice finance companies in the UK (including many on this list!).
In 2017, they helped businesses access over £50M in funding and have served over 1000 small and medium sized businesses.
As a result of their partnerships with multiple funders, you can expect consistent professionalism on their end.
The fees you face depend on your contract with your chosen provider.
Get in touch with one of their expert consultants today to see if you can find a plan that is in line with your business needs.
Find out more about Touch Financial Invoice Factoring here.
Hitachi Capital
- Advance: Up to 85% within 24 hours
- Annual Turnover: at least £50,000
- Contract: 6 month trial period followed by a 3-month rolling contract
- Bad Debt Protection: Offered
- Customer Service: Telephone and Email support
Hitachi Capital is an international financial services organization, with offices in the UK offering invoice finance solutions to local businesses.
In 2014, they funded £72M to UK businesses alone, demonstrating that they are the chosen Invoice Factoring company for a large number of business-owners.
And it’s not difficult to see why!
Their fee structure is as transparent as it gets. You are deducted an initial service fee when you receive the advance, and then a small finance fee once your client settles the invoice in full.
Find out more about Hitachi Capital Invoice Factoring here.
Ashley Finance
- Advance: Up to 90% within 24 hours
- Annual Turnover: maximum £500,000
- Contract: no long term contract
- Customer Service: Telephone and Email support
Having spent 25 years helping UK businesses get access to funding, Ashley Finance has the industry knowledge and business expertise to help you finance your invoices.
Currently, they are the only Invoice Factoring company to set a maximum limit on the annual turnover for applicants, sticking to their promise to primarily serve small businesses.
They offer tailored solutions for your business including Single Invoice Factoring for up to £100,000, and the usual Invoice Factoring for up to £500,000, with no long term obligations.
Compared to other Invoice Factoring companies, Ashley Finance is more forgiving of weak credit scores, as they seek to be more understanding of the circumstances facing small businesses.
As long as you can offer them a personal guarantee of invoice payment, you can gain access to their easy-to-use online platform, as well as more funds when your business generates a higher turnover.
Find out more about Ashley Finance Invoice Factoring here.
Skipton Business Finance
- Advance: Up to 90% within 24 hours
- Annual Turnover: no minimum limit
- Contract: 3 month trial, with no obligations to continue
- Bad Debt Protection: Offered
- Customer Service: Telephone and Email support, direct access to a Relationship Manager, and an online account that’s accessible 24/7
Formed in 2001, and wholly owned by the Skipton Building Society Group, Skipton Business Finance is a trusted Invoice Factoring partner for many businesses in the UK.
They offer excellent customer service, with direct telephone access to a dedicated Relationship Manager, and an online account where you can easily manage your accounts.
One of their most intriguing products for businesses is the White Label Solution, where their relationship with you remains confidential to your clients. Skipton uses your business’ logo to communicate with your clients, and does all collections in the name of your business.
Find out more about Skipton Business Finance here.
IGF Invoice Financing
- Advance: Up to 90% within 24 hours
- Annual Turnover: at least £100,000
- Contract: Tailored to your business
- Bad Debt Protection: Offered
- Customer Service: Telephone and Email support, direct access to a Client Manager
As a leading independent UK commercial finance provider, IGF has proven itself to be a respected company with small business-friendly Invoice Factoring services.
Their network of local advisors are able to tailor contracts to the needs of your business, so that a beneficial working relationship is established.
What’s more, they offer early settlement discounts as opposed to the traditional early repayment fees that are typically imposed by Invoice Factoring companies.
Find out more about IGF Invoice Financing here.
All in all…
Invoice Factoring is an excellent option for your business to obtain quick funding.
WIth the vast wealth of lenders and intermediaries out there, your options are endless.
Each Invoice Factoring company will offer packages tailored to different types of businesses, but now that you’ve read our guide, you’ll have no problem picking the right solution for your business.
Get in touch with a consultant today and make it happen!
Be sure to let us know how you get along, and if you need any further assistance.
