Metro Bank SME Finance Review
Metro Bank is the UK’s first high street bank to have opened in over 150 years. Formed in 2010, they launched Metro Bank SME Finance following the acquisition of the highly reputable SME Invoice Finance and Asset Finance Ltd.
They are known as the Entrepreneur’s Bank and was recently named Most Trusted Financial Provider 2017 by Moneywise. This was primarily due to their exceptional customer service, and SME-friendly Invoice Finance and Asset Finance products. These include Invoice Factoring, Invoice Discounting, Asset Finance, and a Small Business Offering.
In 2016, Metro Bank SME Finance reported a Total Income of £195.1 million, and Total Assets worth £10.1 billion.
Right, let’s begin our review of Metro Bank SME Finance.
In this guide you will find
Metro Bank differentiate themselves from other financial institutions and Invoice Finance companies, by providing higher levels of accessibility. Their stores are open early until late, 7 days/week, and you can reach a customer representative anytime through telephone, online support, or post.
Metro Bank’s offering include:
- Flexible contracts
- SME-friendly solutions
- Strong commitment to clients
- Low eligibility requirements
- Accessible Customer Support
Metro Bank has the resources and capabilities of an established financial institution, and understands the needs of modern UK businesses. They provide fast and efficient service, with an easy-to-use mobile app for a simple, hassle-free experience.
Metro Bank SME Finance Costs and Fees
Metro Bank has 2 straightforward fees for their Invoice Finance solutions: a service fee and a discount fee.
The service fee depends on what type of service you choose to use, and the discount fee is essentially an interest rate on the money that Metro Bank advances to you.
For their Small Business Offering, you are only subject to one single service fee. This is meant for businesses that only need up to £100,000.
Metro Bank SME Finance Products and Services
Metro Bank offers Invoice Finance and Asset Finance solutions for all types of businesses, from startups to PLCs, and don’t require your first year’s accounts. As long as you operate in the B2B sector and have non-contractual debts, your Invoice Finance or Asset Finance Facility can be quickly set up for immediate use.
Metro Bank Invoice Factoring
Metro Bank Invoice Factoring allows you to immediately access up to 85% of your invoice value within 24 hours. Metro Bank advances you this first installment, and handles all your credit control and collections. Once your client settles their invoice with Metro Bank, you will receive the remaining funds minus fees.
Your customers are made aware of your relationship with Metro Bank, who communicates with your customers through customized statements and letters. This removes the burden from you running a sales ledger and credit control, and frees up time for you to focus on your business.
Metro Bank does not set a minimum qualifying annual turnover, and also offers Bad Debt Protection. Their Invoice Factoring is managed through a simple, straightforward online platform that you can access at all times.
Metro Bank Invoice Discounting
Invoice Discounting is similar to Invoice Factoring in that you can access up to 85% of your invoice value within 24 hours. However, your relationship with Metro Bank remains 100% confidential to your customers, and you continue to handle your own credit control and collections.
This solution is suitable for large businesses with established credit reporting and management systems, and would not benefit from Metro Bank’s involvement in this area.
Metro Bank Small Business Offering
Metro Bank offers Invoice Finance for small businesses that need funds up to £100,000. This solution is SME-friendly because your business will only face one single fee, with no set up or minimum usage fees.
This solution is great if you don’t need a lot of funding but still want to reap the benefits of Metro Bank Invoice Factoring and Invoice Discounting.
Metro Bank Asset Finance
Metro Bank Asset Finance allows you to get the equipment you need for your business to grow, while spreading the cost of purchase over time. This includes items such as plant and machinery, vehicles, and trailers.
Metro Bank buys the asset, which you’ll be able to use after depositing 10% of the cost, in addition to a documentation fee. After this, you repay Metro Bank through monthly payments and a fixed interest rate.
Metro Bank allows a repayment term of up to 7 years, so that your monthly repayments won’t disrupt your cash flow.
Metro Bank also offers flexible commercial loans that are ideal for activities such as business expansion, property acquisition, asset purchase, and other working capital requirements. You’re able to receive loans from £150,000 to £25 million, with terms between 1 to 30 years.
Your interest rate and fees depend on factors including your funding needs, business size, and current economic climate.
Metro Bank SME Finance Customer Support
Metro Bank has excellent customer support and high accessibility, compared to other major banks in the UK. Their stores are open 7 days/week with earlier opening hours and later closing times. As a customer, you have many options to manage your account through either telephone banking, online banking, or mobile banking on the Metro Bank app.
You can easily contact Customer Service online, by phone, or by post. Metro Bank also publishes direct contact information for their Regional Directors, in case you want even more personalized service. Their Invoice Finance and Asset Finance services equip you with a dedicated Relationship Manager, who is readily available to give you expert industry advice.
Metro Bank SME Finance Contracts
Metro Bank offers flexible, tailored contracts that are in line with your business needs. If you would like to end your contract with Metro Bank, there is no penalty or termination fee as long as you give them 28-days notice.
Be sure to get in touch with a customer representative to receive an accurate quote on what contracts are available to you, and their associated fees.
Metro Bank SME Finance Reputation
Metro Bank is known as the Entrepreneur’s Bank, as they focus on building a strong brand, creating loyal customers, and offering the best banking experience. They understand the modern business’ needs for fast service and personal customer support, which is why their stores and phone lines are open 7 days/week.
Online reviews praise Metro Bank’s easy set-up, transparent fees, and friendly staff. Customers recommend Metro Bank due to their personalized service and SME-friendly products. Metro Bank aims to be client-oriented by understanding your business, ensuring that your needs are met, and building a long-lasting relationship with you.
Comparing Metro Bank SME Finance
Metro Bank compares well to other major banks and large organizations like Bibby Financial Services, RBS, Lloyds Bank, and Barclays. They all have large pools of resources, and reputable experiences as Invoice Financing providers. The table below compares Metro Bank SME finance with some of the other leading providers.
|Invoice Financing Providers||Metro Bank SME Finance||RBS||Lloyds||Barclays||Bibby|
|Cash Advance||Up to 85%||Up to 90%||Up to 90%||Up to 90%||Up to 100%|
|Time to Receive Funding||Within 24 hours||Within 24 hours||Within 24 hours||Within 24 hours||Within 24 hours|
|Annual Turnover||Not specified||£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||Unlimited, rolling contract|
|Bad Debt Protection||Offered||Offered||Offered||Offered||Offered|
Compared to other banks, Metro Bank are more lenient and flexible. They don’t have set a minimum limit for your annual turnover, because they prefer to understand your business before deciding whether or not they are able to help you. Their contracts can also be discussed and tailored to match your funding needs.
Should You Use Metro Bank SME Finance?
Metro Bank is an excellent choice if you’re looking for a new, innovative banking experience. They offer personalized service and are considerably more small business-friendly than other major banks. Their low requirements and flexible contracts make their solutions suitable for all business types and industries. Metro Bank offers sector-specific solutions and advice for industries such as healthcare, hospitality, and even non-for-profits.
If you want an Invoice Finance provider with simple processes, transparent fees, and fast service, Metro Bank is a great option. They also have convenient banking options such as mobile banking, internet banking, and telephone banking, which are all available anytime.
Metro Bank SME Finance
Metro Bank is the UK’s first high street bank to have been approved in over 150 years. They aim to be the Entrepreneur’s Bank, with small business-friendly Invoice Finance products and a technology-driven approach to banking. Metro Bank understands the frustration of slow service and bureaucratic procedures in traditional banks, and endeavor to give their customers a better banking experience.
Everyday, more and more Metro Bank stores are opening throughout the UK, and they intend to have 200 branches by 2020. You can easily access their banking services at all times by phone, internet, and mobile application, or even directly contact one of their Regional Directors.
If you’re interested in finding out more about their Invoice Factoring or receiving a quote, be sure to reach out to a customer representative either by phone or email. You’ll be able to find their contact information here.