If you are a small business, tracking and managing your invoices and chasing for payments can be time-consuming and take you away from your core work. If you are also in need of financing then invoice factoring may be a good solution for you. Invoice factoring allows you to benefit from an advance on your unpaid invoices and provides you with outsourced credit control and sales ledger support so you can focus on your business. Below we have examined what the leading providers of invoice factoring can offer.
Companies are ranked in no particular order.
| Company | Max Release Value |
|---|---|
| ABC Finance | 95% |
| ABN AMRO Commercial Finance | 90% |
| Advantedge | 90% |
| Aldermore | 90% |
| Bank of Scotland | 90% |
| Bibby Financial Services | 100% |
| Close Brothers | 90% |
| Danske Bank UK | 85% |
| giant finance+ | 100% |
| Hitachi Capital | 90% |
| HSBC | 90% |
| Lloyds Bank | 90% |
| MarketFinance | 90% |
| Metro Bank | 90% |
| Muse | Not stated |
| Nucleus Commercial Finance | 100% |
| Paragon Bank | 95% |
| Peak Cashflow | 85% |
| PFC Finance | 90% |
| Pulse Cashflow Finance | 90% |
| Satago | Not stated |
| Satellite Finance | 90% |
| Skipton Business Finance | 90% |
| Sonovate | 100% |
| Team Factors | 90% |
| Time Finance | 90% |
| Trade Finance Global | Not stated |
| Ultimate Finance | 95% |
| White Oak | 95% |
1. ABC Finance
- Offers a range of invoice finance products including factoring
- Provides a brokerage service
- Can provide terms in an hour
- No brokerage or upfront fees
- Release up 95% of invoice values
- Funds released within 24 hours
- Will chase the payment for you
- A service fee and factoring fee applies
- Offers bad debt protection as an add-on
- Apply over the phone
Website ABC Finance Invoice Factoring
Read the full ABC Finance review
2. ABN AMRO Commercial Finance
- Provides a choice of invoice finance products including factoring
- Up to 90% of invoice values released
- Experienced credit control team will manage your payments
- Flexible finance that can grow with your business
- Funds provided in days
- Online management
- Dedicated Credit Controller
- Suitable for start-ups and established businesses
- Option to add Bad Debt Protection
- Apply over the phone
Website ABN AMRO Commercial Finance Invoice Factoring
Read the full ABN AMRO Commercial Finance review
3. Advantedge
- Offers a choice of invoice financing including factoring
- Release up to 90% of invoice value
- Provides credit control and sales ledger management service
- Online management
- Receive funds on the same day if loaded before midday
- Borrow up to £2 million
- Caters for SMEs
- Suitable for start-ups with sales invoices
- Also offers Bad Debt Protection
- Apply over the phone
Website Advantedge Invoice Factoring
Read the full Advantedge review
4. Aldermore
- Choice of invoice financing products including factoring
- Access up to 90% of unpaid invoice
- Includes full credit control service
- Can grow with your sales
- Release funds within 24 hours
- Offers individually designed packages
- Online access to the facility
- Dedicated Relationship Manager
- Optional Bad Debt Protection
- Apply over the phone
Website Aldermore Invoice Factoring
Read the full Aldermore review
5. Bank of Scotland
- Provides a choice of invoice finance including factoring
- Release up to 90% of unpaid invoice values
- Funds can be released in 24 hours
- Provides sales ledger management support
- Disclosed service
- Online management
- Can grow in line with your sales
- Add debtor protection
- Apply through Lloyds Bank which they deliver in partnership with
Website Bank of Scotland Invoice Discounting
Read the full Bank of Scotland review
6. Bibby Financial Services
- Provides a choice of invoice finance including factoring
- Release up to 100% of invoice values
- Funds received within 24 hours
- Will grow in line with your sales
- Rolling contract
- Manage your customer payments
- Option to make process confidential
- Online account management
- Can combine with Bad Debt Protection
- Request a call back to enquire/apply
Website Bibby Financial Services Invoice Factoring
Read the full Bibby Financial Services review
7. Close Brothers
- Offers a choice of invoice finance including factoring
- Release up to 90% of unpaid invoices
- Provides expert credit management
- Discreet payment collections
- Instantly receive payment
- Individually priced plan tailored to your needs
- Online account management
- Dedicated relationship manager
- Minimum annual turnover of £500,000
- Apply over the phone or enquire online
Website Close Brothers Invoice Factoring
Read the full Close Brothers review
8. Danske Bank
- Provides a range of invoice finance options including factoring
- Advances up to 85% of invoice values
- Becomes your credit control team
- Manages your outstanding invoices
- Funding received the same day if invoices are received before 11am
- Disclosed facility
- Works alongside your existing bank facilities
- Requires you to have a Danske Bank business current account
- Rates and terms are subject to their assessment of your business
- Apply over the phone
Website Danske Bank Invoice Factoring
9. Giant+
- Offers a factoring style of invoice finance
- Can release up to 100% of unpaid invoices
- Provides a credit control service
- Will chase invoice payments for you
- Uses your payment terms
- Manages all your payment processes
- Provides a fast service to access funding
- Simple to use facility
- Can also include bad debt protection
- Apply over the phone
Website Giant+ Invoice Factoring
Read the full Giant+ review
10. Hitachi Capital
- Offers a range of invoice finance including factoring
- Release up to 90% of unpaid invoices
- Receive funding in 24-48 hours
- Provide a team of expert credit controllers
- Collects payments on your behalf
- Disclosed service
- Service fee is deducted from the customer payments
- Provides an invoice factoring calculator to allow you to see the cost
- Also offers payroll finance
- Apply over the phone
Website Hitachi Capital Invoice Factoring
Read the full Hitachi Capital review
11. HSBC
- Provides a choice of invoice finance products including factoring
- Up to 90% of invoice values released
- Includes sales ledger management service
- Collect and manage customer payments
- Funds received the next working day
- Secure funding service that can grow with your sales
- Dedicated Credit Controller
- Arrangement fees will apply
- Option to add credit protection to guard against bad debts and late payments
- Apply over the phone
Website HSBC Invoice Factoring
Read the full HSBC review
12. Lloyds Bank
- Offers a range of invoice financing including factoring
- Release up to 90% of invoice values
- Provides a full factoring service
- Receive funds within 24 hours
- Manages your sales ledger
- Supports your credit control processes
- Grows with your business sales
- Supported by a dedicated Client Manager
- Businesses must have a turnover above £50,000
- Apply over the phone
Website Lloyds Bank Invoice Factoring
Read the full Lloyds Bank review
13. Market Finance
- Provides a choice of invoice finance solutions including factoring
- Offers contract or pay-as-you-go payment choices
- Selective invoice factoring where you choose which invoices to factor
- Full invoice factoring
- Up to 90% of unpaid invoice value can be released
- Provides an easy to use platform
- No hidden fees
- Can apply in minutes
- Provides a dedicated account manager
- Apply online or over the phone
Website Market Finance Invoice Factoring
Read the full Market Finance review
14. Metro Bank
- Offers a choice of invoice factoring and discounting
- Flexible system
- Advance up to 90% of the sales values
- Funds can be received in 24 hours
- They offer flexible contracts with a 28 day notice period
- Online account management
- Manages your sales ledger and credit control functions
- Provides a named Relationship Manager
- Suitable for small businesses wanting funding up to £100,00
- Apply online
Website Metro Bank Invoice Factoring
Read the full Metro Bank review
15. Muse
- Offers a range of invoice finance solutions including factoring
- Single invoice factoring for a single invoice
- Selective invoice factoring allows you to select which invoices/customers to factor
- Whole book invoice factoring which covers all invoices
- The % released from unpaid invoices is not stated
- Includes sales ledger management
- A credit controller will collect payments
- Minimum 12 month period for whole book factoring
- 3 to 12 month periods for selective factoring
- Enquire online
Website Muse Invoice Factoring
16. Nucleus Commercial Finance
- Provides an invoice factoring solution
- Can release up to 100% of unpaid invoices
- Accessing funding from £100,000 to £50 million
- Funds can be received within 24 hours
- Repay over 3 to 7 months
- Can be set up within a month
- Their in-house team will guide you through the process
- Easy to use system
- Open to businesses in England and Wales
- Apply over the phone
Website Nucleus Commercial Finance Invoice Factoring
Read the full Nucleus Commercial Finance review
17. Paragon Bank
- Provides a choice of invoice financing including factoring
- Advance up 95% of the invoice value
- Funds can be received within 24 hours
- Manage your payment collection process
- Provides flexible terms
- Simple fee structure with no hidden fees
- Short notice contracts
- Provides a dedicated credit controller
- Option to add Bad Debt Protection
- Apply over the phone
Website Paragon Bank Invoice Factoring
Read the full Paragon Bank review
18. Peak Cashflow
- Offers a choice of invoice finance including factoring
- Provides a standard disclosed factoring service
- Offers confidential factoring
- Release up to 85% of unpaid invoices
- Full credit support and detailed credit checks
- They will collect your payments
- Experienced credit controllers
- Offers a free 45 minute consultation
- Can add bad debt protection
- Apply over the phone or enquire online
Website Peak Cashflow Invoice Factoring
Read the full Peak Cashflow review
19. PFC Finance
- Provides a brokerage service
- Offers a choice of invoice finance solutions
- Release up to 90% of unpaid invoice values
- Will seek out the best options for you
- Includes credit control service
- Will chase payments for you
- Caters for a variety of business sectors
- Available to businesses of different sizes
- Apply over the phone
Website PFC Finance Invoice Factoring
Read the full PFC Finance review
20. Pulse Cashflow Finance
- Provides a choice of invoice finance solutions
- Their factoring solution is called invoice finance
- Up to 90% of unpaid invoices can be released
- Provides credit control and sales ledger management
- Collects payments from customers for you
- Can grow with your sales
- Transparent fees
- Fast decisions
- Suitable for start-ups and established businesses with turnover between £350,000 and £15 million
- Apply over the phone
Website Pulse Cashflow Finance Invoice Factoring
Read the full Pulse Cashflow Finance review
21. Satago
- Provides a choice of invoice financing including factoring
- Single invoice finance
- Disclosed service
- No release amount stated
- Choose which invoices to get funding from
- No contract
- Pricing is per invoice funded
- Fast approval and drawdown of funds
- Provides credit risk tools
- Apply online
Website Satago Invoice Factoring
Read the full Satago review
22. Satellite Finance
- Provides a brokerage service
- Choice of invoice finance including factoring
- Will help you find the best provider
- Release up to 90% of unpaid invoice values
- Manages your whole sales ledger
- Chase payments
- Credit check potential customers
- Disclosed service
- Apply over the phone
Website Satellite Finance Invoice Factoring
Read the full Satellite Finance review
23. Skipton Business Finance
- Offers a choice of invoice finance including factoring
- Draw up to 90% of your invoice values
- Access funds as soon as invoices are raised
- Supported by a credit control team
- Tailored facility to meet your business needs
- Offers discreet or disclosed service
- Offers CHOCS invoice factoring which is a disclosed solution where you retain responsibility for credit control
- Dedicated Relationship Manager
- Specialise in invoice finance for UK businesses
- Enquire online
Website Skipton Business Finance Invoice Factoring
Read the full Skipton Business Finance review
24. Sonovate
- Provides an invoice factoring funding solution
- Offers up to 100% advances on invoices
- Receive funding within 24 hours
- Rolling contract
- Single fee structure with no setup costs
- Provides online account management
- Can integrate with your accounting software
- The software allows you to generate financial reports and auto-sync transactions
- Enquire online
Website Sonovate Invoice Factoring
25. Team Factors
- Offers invoice factoring and recruitment finance
- Advance up to 90% of unpaid invoices
- Receive funds immediately
- Accounts can be set up in 48 hours
- Simple fees with no hidden costs
- A rolling contract of 30 days
- Choice of using some or all of your invoices
- Provides a customer credit check service
- Can add debtor protection
- Enquire online or call them
Website Team Factors Invoice Factoring
Read the full Team Factors review
26. Time Finance
- Offers both confidential and disclosed invoice financing
- Disclosed invoice financing is factoring
- Release up to 90% of unpaid invoices
- Receive funding in 24 hours
- Manages your credit control
- Chases payments for you
- Online system to load invoices
- Caters for start-ups to large businesses
- Can add Selective Bad Debt Protection
- Apply over the phone
Website Time Finance Invoice Factoring
Read the full Time Finance review
27. Trade Finance Global
- Provides a brokerage service
- Offers a choice of invoice finance options including factoring
- Searches for the best financing solution for you
- Disclosed service
- Management of your sales ledger
- Undertake credit checks on customers
- Suitable for domestic and international invoices
- Can grow with your sales
- Has a team of product specialists
- Enquire online or call for more details
Website Trade Finance Global Invoice Factoring
Read the full Trade Finance Global review
28. Ultimate Finance
- Provides a choice of invoice finance including factoring
- Advance up to 95% of unpaid invoice values
- Offers funding facility up to £5 million
- The facility can be set up in a week
- Funds can be received in 24 hours
- Disclosed service
- Manages your credit control
- Set up fees and service fees apply
- Provides a dedicated specialist relationship manager
- Apply over the phone
Website Ultimate Finance Invoice Factoring
Read the full Ultimate Finance review
29. White Oak
- Offers a choice of invoice finance including factoring
- Advance up to 95% of your invoice values
- Provides a lending facility of £200,000 to £5 million
- Disclosed service
- Manages your sales ledger
- Will collect customer payments for you
- Debtor terms of 30 to 120 days
- Suitable for businesses with a turnover of £200,000 to £10 million
- Must have been trading for more than 3 years
- Apply online or request a callback
Website White Oak Invoice Finance
Read the full White Oak review
How does invoice factoring work?
Invoice factoring is a way of accessing cash flow from unpaid invoices as soon as you raise them. It works differently from other financing products as it is technically not a debt but an advance allowing businesses to draw down on funds owed to them. Most providers offer to release up to 90% of your unpaid invoice values. Normally funds will be received from the provider within 24 hours.
Invoice factoring differs to invoice discounting as it is a disclosed service where the provider takes control of your credit control and sales ledger. This means that they will take over from the point that you raise the invoice and they will chase payments and match the payments when they are received. When they receive the payments they will take the money that is owed to them plus the fee and transfer the remaining amount to you.
Some providers offer single or selective invoice factoring which allows you to choose the invoices or customers that you factor rather than your whole sales ledger. Some also offer a more discreet or confidential service that is still a factoring service but they operate under your name and create a bank account in your name so that it is less apparent that a third party is involved.
Invoice Factoring FAQ
How much can I borrow?
The amount that you can borrow through invoice factoring will vary depending on the provider’s terms, the value of your sales ledger, and the amount of credit you are deemed eligible for.
The majority of lenders offer to release up to 90% of your unpaid invoice values, however, this varies from 85% to 100%.
Most providers do not state what their maximum borrowing level is in terms of pounds although some have stated a level of £5 million.
How much will invoice factoring cost?
The cost of invoice factoring is not stated by most providers on their websites. Some provide quoting tools, others offer a quote on request and others offer a bespoke service where they will tailor the service and costs to your needs.
Most invoice factoring services are made up of 2 sets of charges, the first being a service charge that is a regular fee for accessing the service.
The second charge is the percentage rate fee that is applied to each transaction made and this is taken from the customer payments when the provider receives it before they transfer the remaining funds to you.
There may also be some set-up or arrangement costs depending on the provider.
How long can I borrow money for?
There isn’t a fixed or standard term for invoice factoring as the repayments are based on the customer invoice terms which could be 30, 60, 90 or 120 days depending on your terms.
The provider is paid directly by your customers, so they take the loan amount and their fee before transferring the remaining funds to you, so it is very much down to when your customer pays.
This is why factoring is a preferred route for some providers as it gives them control of the credit control management and chasing payments.
How to apply for invoice factoring?
In most cases, you will need to call the invoice factoring provider to apply for their product and discuss your eligibility and needs.
Some providers do offer an online application or enquiry form which they will give you a call back to discuss the product further.
The application process may be fairly straight forward but there will be some checks that will need to take place and they will need to get you set up on their online systems so it can take a few weeks to get the facility up and running.