Business Expert’s comparison service puts you in contact with every top invoice finance company in the UK, so you can find the best provider for your specific business.
Invoice finance companies will allow you to receive the money for your unpaid invoices quickly and efficiently, improving your working capital cycle and allowing you to focus on what you do best.
Please bear in mind, though, that choosing the ‘best’ is a difficult task since every business has its own needs, credit score, number of monthly invoices, and risk level. As such, matching a company with an invoice factoring provider is best done at the individual level, by an experienced broker with the whole of the market at their fingertips.
That said, the companies below are leading invoice finance providers who offer a great range of factoring and discounting services, matched with good customer service.
Get Quotes from the UK’s Best Invoice Finance Providers
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Compare the 13 Best Invoice Finance Companies in the UK
We conducted a thorough review of the UK’s leading invoice financing companies to assist you in selecting the most suitable invoice finance provider for your specific needs. Our evaluation included companies that specialize in factoring, discounting, and offering protection against bad debt.
Based on our research, the top invoice financing companies in the UK are Kriya, Growth Lending, Skipton Business Finance, Metro Bank SME Finance, RBS FacFlow, Bibby Financial Services, Sonovate, Aldermore Invoice Finance, and Close Brothers Finance. These firms have demonstrated excellence in various critical aspects of invoice financing.
|Company Name||Advance Rate||Fees||Eligibility Restriction||Customer Support|
|Kriya (formerly Market Invoice)||90%||0.2-3.5%||must be a limited company with an annual turnover of £250,000||24/7|
|eCapital Factoring||Up to 96%||Varies||None||24/7|
|Close Invoice Finance||Up to 90%||0.5-2%||projected turnover above £500k||Monday-Friday 9AM-5PM|
|Skipton Business Finance||Up to 90%||2-3.5%||From startups to 30 million p.a.||Monday-Friday 9AM-5PM|
|Bibby Financial Services||Up to 90%||0.5-3.2%||Annual turnover over £100,000||Monday-Friday 8:30AM-5:30PM|
|Creative Capital||Up to 92%||Varies||None||Monday-Friday 8AM-6PM|
|IGF Commercial Finance||Up to 90%||Varies||None||Monday-Friday 9AM-5PM|
|Time Finance Plc||Up to 90%||Varies||None||Monday-Friday 9AM-5PM|
|Pulse Cashflow Finance||Up to 90%||Varies||None||Monday-Friday 9AM-5PM|
|Calverton Finance||Up to 90%||Varies||None||Monday-Friday 9AM-5PM|
|Team Factors||Up to 90%||Varies||None||Monday-Friday 9AM-5PM|
|Hitachi Capital Invoice Finance||Up to 85%||Varies||Annual turnover over £50,000 (recommended)||Monday-Friday 9AM-5PM|
|Nucleus Commercial Finance||Up to 85%||Varies||None||Monday-Friday 9AM-5PM|
Best UK Invoice Finance Companies
(1) Kriya (formerly Market Invoice)
Europe’s largest invoice finance platform, Kriya, has funded over £20bn worth of invoices since 2011. Barclays and Santander now have significant stakes, making it a very robust and well-funded platform. It only offers discounting, which means you retain responsibility for credit control.
In August 2013, the UK government – via the British Business Bank – began lending to UK small businesses through Kriya. This partnership has now seen more than £50m funded to date.
Kriya allows you to receive up to 90% of your invoice value within 24 hours and the remainder when the invoice is due.
(2) eCapital Factoring
Formerly known Advantedge, eCapital has grown to become one of the UK’s leading privately owned factoring companies.
Based in the Thames Valley and Manchester, the Directors have over a 120 years’ experience of funding businesses, with $4bn now funded in the UK.
Their online tool provides real-time information and enables immediate access to funding.
“We know that people, not machines, make the best funding decisions and are the key to good relationships,” commented Advantedge.
“We offer a unique client management system that ensures that your point of contact manages all aspects of your facility. We understand that shared knowledge enables us to make the best funding decisions.”
Ecapital has a 5.6 out of 5-star rating on Trustpilot, with an overall score of excellent.
(3) Close Invoice Finance
Close Brothers Invoice Finance – voted Business Moneyfacts’ “Best Factoring & Invoice Discounting Provider” for the third consecutive year
Close Brothers Invoice Finance is part of Close Brothers Group plc, a FTSE 250 modern merchant banking group and one of the highest-rated banks in the UK*. Providing the flexibility of an independent provider, combined with the financial strength of our merchant bank parentage, Close offer customers the best of both worlds.
With direct access to underwriters, Close local teams are empowered to make quick decisions. They don’t just look at industry and turnover, but take into account factors that other banks may not be able to, such as your business objectives and future potential.
Close commented: “Our market-leading technology, IDealTM is another reason why we stand out. Traditional invoice discounting solutions require manual reconciliation, adding overhead and accounting costs as well as the opportunity for error. IDeal™ seamlessly integrates with your accounting software and automatically reconciles invoice payments, saving you time and money. As well as this, our customers enjoy instant access to cash from their invoices, 24/7, from anywhere in the world.”
* Moody’s bank ratings April 2016
(4) Skipton Business Finance
Skipton Business Finance is a leading receivables financier with offices in Skipton, Leeds, Manchester, Birmingham and Bracknell.
Multi-award-winning, they provide UK businesses with working capital through our flexible Invoice Finance solutions, including Invoice Factoring, Invoice Discounting and their award-winning My White Label solution.
Whilst having the flexibility and speed of an independent business, they are a wholly owned subsidiary of Skipton Building Society, a mutual financial institution that has been serving its members for over 150 years.
(6) Bibby Financial Services
Bibby Financial Services prides itself on delivering innovative financial solutions to Small and Medium Sized Business. Enabling owner-managers and directors to fulfil their business goals and ambitions by providing the financial support they need when they need it!
Offering flexible funding facilities ranging from £5k to £10m across a broad range of solutions enables our Clients to run their businesses confidently, whatever the circumstances.
Bibby’s business heritage of over 200 years allows them to support all business sectors, whether they are startups, fledgling or well-established. This experience also enables them to deliver facilities to their customers and clients, whatever their financial circumstances.
(7) Creative Capital
Creative Capital is an independent finance company based in Cheshire but with national sales coverage.
They are privately funded and owner-managed, which enables them to make underwriting decisions in-house. The owners are still involved in the day-to-day running of the business and still maintain regular contact with customers and introducers.
Founded in 2010, Creative Capital were one of the first specialist Selective Invoice Finance companies in the UK. Since then, they have expanded their operations to offer our clients Trade and Stock Finance facilities, amongst others.
This product allows our clients to pick and choose invoices to sell to us, as and when they need to. Rather than funding an entire sales ledger (as with factoring or invoice discounting), clients only raise the amount they need, when they need it. Our typical clients are owner managed businesses who are growing, but need some additional help getting onto the next step. We are able to finance a single invoice to a single debtor, or customers can put together a “batch” of several invoices to a few debtors.
(8) IGF Commercial Finance
In their own words “IGF is proud to be different from the traditional model of a commercial finance company. We are not the biggest, nor the loudest; and the way we work with our clients may surprise many.”
• IGF has the best ratio of client managers to clients in the industry; 1:45 compared to typically 1:100 of our competitors.
• All of IGF’s senior management team have their direct phone numbers on the website.
• Our client retention is better than any of our competitors. On the rare occasion that a client has left to look for pastures new they often return to us quickly. When a client doesn’t need IGF anymore, we see that as a job well done.
(9) Time Finance PLC
Established in 2007 and now wholly owned by four directors with a wealth of experience in the industry
Time Finance funds businesses looking for facilities from £10,000 to £ 1 million. They offer a hands-on, bespoke service to clients, particularly ideal for those using invoice finance facilities for the first time or who may be experiencing a difficult relationship with their incumbent lender.
Time Finance offers a wide range of invoice finance facilities, underwrites all new business deals in-house, and prides itself on providing swift funding decisions ensuring there are no last-minute surprises.
With offices in Manchester and Birmingham, most of their existing clients have historically been based in the North West & the Midlands. As our reputation has grown, they have seen demand increase from businesses throughout the UK and currently support around 200 businesses in various sectors.
(10) Pulse Cashflow Finance
Pulse Cashflow Finance are an experienced funding partner who work with businesses to provide working capital solutions to rectify the issues and help business grow.
Recipient of several invoice finance and receivables awards, Pulse Cashflow Finance have now delivered over £1bn of cashflow support since their founding 10 years ago.
(11) Calverton Finance
Calverton support businesses turning over between £250k and £5million across the UK with flexible cash flow solutions.
Calverton can release up to 90% of the invoice value to you so you can pay suppliers, staff and any other business expenses, rather than waiting until your customer pays to access these funds.
(12) Team Factors
Team Factors are an independent funder since 2010 who provide factoring and back-office solutions primarily to the SME market.
In their own words: “Our core strength is our size; it enables us to provide fast and flexible solutions that suit our client’s needs rather than having them to conform to ours.”
“Our business is very relationship driven with all prospects meeting and have access to board level staff throughout their lifecycle. We assist with funding of start-ups up to funding lines of GBP 750,000”
(13) Hitachi Capital Invoice Finance
Hitachi Capital Invoice Finance has over 25 years’ experience within this market, and has have helped over 700 small and medium sized businesses grow and fulfil their potential.
(14) Nucleus Commercial Finance
Nucleus Commercial Finance was founded to provide UK SMEs with alternative funding options. No bureaucracy, no rigidity: we support growing companies with the finance they need to flourish.
They are an alternative business funding specialist that offers the same credit facilities as a bank with all the flexibility of a Peer to Peer provider. Whether you need working capital, a bridging loan or finance for new business equipment, Nucleus have the financial expertise to structure alternative business funding that will help ensure your future success.
What is an invoice factoring company?
An invoice factoring company is a financial institution that assists businesses in managing their cash flow by purchasing their outstanding invoices. This means that the factoring company will pay the business a percentage of the invoice amount immediately, typically up to 80-90% of the value, after verifying that the invoices are valid. The factoring company will then collect payment directly from the customer.
Invoice factoring can be a helpful way for businesses to improve their cash flow, especially if they have slow-paying customers. It can also help businesses to free up working capital so that they can invest in growth or other opportunities.
There are two main types of invoice factoring: recourse and non-recourse. With recourse factoring, the factoring company has the right to go back to the business if the customer does not pay the invoice. With non-recourse factoring, the factoring company bears the risk of non-payment.
The cost of invoice factoring will vary depending on the factors company and the terms of the agreement. However, businesses can typically expect to pay a fee of 1-3% of the invoice amount.
What to look out for when choosing an invoice factoring company?
In our experience, the key thing is to find a lender who is right for your business, understands the sector, and who communicates well at every stage of the process.
You should consider the following factors:
- Cost: Compare fees and interest rates from multiple providers to find the most cost-effective solution.
- Reputation: Research the company’s history and reviews to gauge its reliability and credibility.
- Contract terms: Review the contract thoroughly to understand the length of the agreement, renewal options, and any hidden fees.
- Funding speed: Consider how quickly the company can provide funds and if they have any requirements or limitations.
- Customer support: Evaluate the company’s level of customer service, including their responsiveness.
- Industry expertise: Consider if the company has experience working with businesses in your industry, as this may impact the level of support
How Do I Compare the Best Invoice Finance and Factoring Providers?
Here at Business Expert, we specialise in helping UK businesses get the right finance that is going to help their business grow.
Please do make contact us if you’d like to speak with our Head of Finance, Alex Kyriacou, about getting a range of invoice finance quotes to support your working capital cycle. We make it as simple as possible to compare the best providers, plus you’ll be getting a lot of industry knowledge.
Simply provide a few details about your business needs and let Business Expert connect you with the most reputable and trusted invoice factoring companies that align with your requirements.
How does an invoice factoring company work?
An invoice factoring company, also known as a factor, provides a financial service that allows businesses to improve their cash flow by converting their outstanding invoices into immediate cash. The process typically involves the following steps:
- Agreement: The business enters into an agreement with the invoice factoring company. This agreement outlines the terms, fees, and conditions of the factoring arrangement.
- Invoicing: The business continues to provide goods or services to its customers as usual and generates invoices for the sales made.
- Submission: The business submits the invoices to the factoring company for verification. The factoring company reviews the invoices and conducts due diligence on the business’s customers to assess their creditworthiness.
- Advance: Once the invoices are approved, the factoring company advances a percentage of the invoice amount, usually ranging from 70% to 90%, to the business. This provides immediate funds that can be used for working capital, covering expenses, or other business needs.
- Collection: The factoring company takes over the responsibility of collecting payments from the business’s customers. They send payment reminders and follow up with customers to ensure timely payment.
- Reserve: After collecting the full invoice amount from the customers, the factoring company deducts its fees and any previously advanced funds. The remaining amount, known as the reserve, is returned to the business.
- Ongoing Process: This process can be ongoing, with the business continually submitting new invoices to the factoring company for financing. It provides a consistent source of working capital without waiting for extended payment terms.
Invoice factoring is a flexible financing option that helps businesses manage their cash flow effectively, especially when dealing with slow-paying customers or periods of rapid growth. It allows them to access immediate funds and focus on their core operations without the burden of chasing outstanding payments.
What types of businesses are invoice factories companies suitable for?
nvoice factoring companies are suitable for a wide range of businesses, especially those that face cash flow challenges due to slow-paying customers or seasonal fluctuations. Here are the types of businesses for which invoice factoring is particularly beneficial:
- Small and Medium-sized Enterprises (SMEs): SMEs often struggle with limited working capital. Invoice factoring can help them bridge cash flow gaps caused by delayed payments and cover operational expenses.
- B2B (Business-to-Business) Companies: Businesses that primarily sell products or services to other businesses are well-suited for invoice factoring. This includes industries like manufacturing, wholesale distribution, and business services.
- Startups: Startups with limited operating history and access to traditional financing options can benefit from invoice factoring to obtain quick cash for growth and expansion.
- Seasonal Businesses: Companies that experience seasonal fluctuations in demand and revenue can use invoice factoring to manage cash flow during slow periods and prepare for peak seasons.
- Fast-Growing Companies: Rapidly growing businesses often require substantial working capital to support their expansion. Invoice factoring provides an efficient way to access funds without taking on additional debt.
- Businesses with Irregular Cash Flow: Some industries, such as construction and healthcare, often face irregular payment schedules from clients or insurance companies. Invoice factoring helps smooth out these cash flow fluctuations.
- Companies with Long Payment Terms: Businesses that offer extended payment terms to their customers, such as 60 or 90 days, can use invoice factoring to avoid cash flow constraints while waiting for payments.
- Companies with Creditworthy Customers: Invoice factoring companies typically consider the creditworthiness of a business’s customers. If a business’s customers have a good credit history, it can improve the likelihood of approval for factoring services.
- Businesses in Need of Working Capital: Any business in need of immediate working capital to cover operational expenses, invest in growth, or take advantage of business opportunities can explore invoice factoring as a financing option.
Are Invoice Finance Companies Regulated in the UK
The Financial Conduct Authority does not regulate Invoice Finance in the UK.