Invoice factoring is a process where a business sells their outstanding invoices to a third part - the invoice factor pays the business’s bills and is then repaid over a period of time. For a number of businesses, this is an excellent way to raise funds.
As with any financial decision, invoice factoring is a process that requires thought before a decision is made; it is vital that you work with a reputable factoring agency, and it is equally vital that you are happy with the terms of your arrangement.
This page compares some of the UK’s top invoice factoring providers; it has been put together to provide insight into what you might expect, and also to help your business to choose a trustworthy factoring company.
To find out more about the UK’s best invoice factoring companies, simply continue reading the content on this page; otherwise, if you are ready to start comparing supplier quotes straight away, just fill in the quick and easy form at the top of the page.
Comparing top invoice factoring companies with Approved Index is free, quick and easy, and it could save your business a great deal.
Save by Comparing Invoice Factoring Quotes.
Comparing Top Invoice Providers
Finding an invoice factoring provider that you trust is, as mentioned vitally important for businesses when they are looking to raise funds in this way. Determining trust is not always easy, with a range of factors influencing your view of a company.
The list below includes just a few factors that might help a business to decide:
- Company size
- Company age
- Plans available
- Client reviews
- External reviews
Though the list above contains a range of factors, it is by no means all-encompassing and there could a number of other things that help a business decide one way or the other.
The table below contains a very quick introduction to the invoice factoring providers on this page.
|Ashley Business Finance||Manchester|
|Aldermore Invoice Factoring||Peterborough|
|Royal Bank of Scotland||Edinburgh|
Continue on down the page to find out more about each of the companies included in the table above.
Ashley Business Finance
Ashley Business Finance is a specialist provider of funding solutions for small businesses. Invoice factoring is just one of many products they offer. Their limit for factoring is £250,000, but funds made available are tied to company turnover.
Ashley do not require long-term contracts, and provide solutions for companies that other factors would reject.
IGF has the distinction of being publically owned. It is part of the Greater London Enterprise Group, but independently run. Their remit is the provision of fair and supportive services, and it has gathered many positive reviews, despite not offering much coverage in the North of England or Scotland. It is very focused on helping small and medium sized businesses achieve their potential. It also covers debt protection and business loans.
IGF has a reputation for understanding the problems small businesses face. The invoice factoring resources are focused on short term arrangements only.
Metro Bank SME Finance only provides invoice factoring solutions. The company’s business model is to focus on that one thing and excel at it. Metro is well regarded within the industry. It has a reputation for bending over backwards to find the right solutions for its clients and providing sound advice alongside financing.
The variety of solutions on offer make Metro top for flexibility and choice.
Aldermore Invoice Financing
Credit Today named Aldermore Invoice Financing ‘Invoice Finance Provider of the Year’ in 2015. Its hallmarks are fee transparency and speed. It focuses on providing invoicing services for small and medium sized companies.
Aldermore is also known for flexibility, though it does not offer much in the way of short-term finance, preferring regular, longer-term arrangements.
A subsidiary of the building society of the same name, Skipton is backed by the Enterprise Finance Guarantee Scheme, making it very popular among medium-sized businesses. The scheme supports financing of between £1,000 and £1.2m. Arrangements are bespoke – tailor-made for each company, and structured like a partnership, which makes it useful for businesses looking for more than just financial help.
Skipton’s service is not available to very small businesses.
Close Brothers offer factoring alongside asset-based lending and discounting. The company focuses on medium enterprises and is a member of the FTSE 250. Moneyfacts voted it the ‘Best Factoring & Invoice Discounting Provider’ of 2015. The company has a lot of industry-specific expertise, so if you are looking for a specialist provider, they might be a good fit for you.
Close Brothers have a holistic approach to assessing a business, looking at a company’s objectives and sector as well as turnover.
Market Invoice is an online platform that brings a combination of auction and crowdfunding to the invoice financing sector. The site is a 24-hour facilitator, enabling companies to sell their invoices to the highest bidder at any time of the day. Bidders may be asset managers or wealthy individuals. Market Invoice provides an assessment of both parties, making sure that the invoices come from solid companies and that the buyers will pay within 24 hours.
Companies are not tied in to any ongoing arrangement. Monthly turnover is expected to top £5m in 2016. This ‘broker’ would not suit businesses who prefer to deal with people directly.
Royal Bank of Scotland
Because RBS is an established bank, a company can benefit from combining their business banking with invoice finance. The face to face aspect of working with a high-street banking provider has many advantages, but RBS’s online factoring platform Factlow means that you can manage your discounting facility at any time.
Support is also offered via a dedicated phone line. RBS is a good fit for medium to large businesses.
Compare Top UK Invoice Factoring Companies Today
The information on this page should give you some idea as to which invoice factoring company will offer the best service for your business. For more information though, you should speak to suppliers - Approved Index can help here.
Comparing invoice factoring quotes with Approved Index is free, quick and easy, and it could save you as much as 40%.
Save by Comparing Invoice Factoring Quotes.