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Release up to 100% of invoice value
We Compare the Top 10 Invoice Finance Companies
Top 10 Invoice Finance Companies
If you are searching for the best invoice finance provider for your business, you have come to the right place. In this useful guide we take a look at the top 10 invoice finance companies. This is so you don’t need to waste your time comparing the many options available. As the number of invoice finance companies grows, it can be difficult to know where to start. Also, choosing between invoice factoring and invoice discounting services can be tricky. Our comprehensive list includes both specialist lenders and large banking organisations. This is so you can fully understand the invoice finance options available to you.
What is invoice finance?
Invoice financing is a term used to describe a range of asset-based lending options. This service enables businesses to borrow a percentage of the total value of their outstanding accounts receivable.
In many cases applications can be processed in as little as 24 hours. This quick turnaound enables businesses with tight cash flow to unlock the value in their unpaid invoices. Consequently, this instantly improves cash flow.
The invoice finance provider will purchase your invoice at an agreed percentage of the full value, minus their fee. Once the debtor pays the invoice, the remaining balance is passed across to your business.
There are many forms of invoice finance available, including the popular options invoice factoring and invoice discounting.
There is no one size fits all approach with invoice financing. However, the main difference between invoice factoring and discounting is who is responsible for collecting payments from debtors. Invoice factoring is an ideal option for businesses which do not have an in-house credit control team. Instead, the factoring companies team will be responsible for collecting debtors’ payments. Alternatively, Invoice discounting allows you to maintain responsibility over the administration of invoices. You still get to unlock tied up cash flow. But your customers do not need to know about your financing arangements.
Each option is designed to unlock the cash tied up in your business. Either version is a feasible alternative to other forms of borrowing such as overdrafts and loans.
Instead of waiting for customers to pay, you can access a percentage of invoice balances at an earlier date. If needed, the amount of available finance can rise in line with your business’ turnover.
1. Barclays Invoice Financing
Barclays takes top spot in our list of the top 10 invoice finance companies. The firm is one of the best invoice financing solutions for both SME’s and larger businesses. There are separate services available depending on your business size. Businesses with a turnover of more than £500,000 will be directed towards the Barclays Corporate invoice financing offering.
Invoice finance for small to medium sized businesses is provided via MarketInvoice. This company is a member of the Peer-to-Peer Finance Association. Their financing system works in a similar way to crowdfunding. Invoices are purchased by several buyers through a bidding system. Their package is ideal for small businesses which are looking for a flexible solution. Plus there is no hidden fees or lengthy contracts.
Only invoice factoring is available, although it is possible to use a confidential service.
Minimum turnover required is approximately £100,000 for SME’s and £500,000 for larger businesses.
Advance rate of up to 90% available.
It is possible to fund some or all your outstanding invoices.
Financing often processed with 24 hours.
Fees of between 1-3%.
Flexible contract lengths, one-off solutions, and occasional use available.
An easy-to-use online account platform.
Customers must use a computerised credit control system and be able to show a high level of invoicing activity.
2. Aldermore Invoice Finance
Aldermore is a UK based invoice financing company which focuses on small to medium-sized businesses. Aldemore is great coice if your business is looking for a flexible approach to lending. If you have been rejected by another finance provider, you could benefit from Aldermore’s 90% approval rating.
Aldemore's customers are provided with access to a simple to use online financing account. This account is known as the E3 portal. This portal allows quick management of your funding. In addition, your business will have its own relationship manager. Your relationship manager will regularly review your account to ensure you are receiving the best possible value.
Both invoice factoring and discounting is available.
Minimum turnover required is approximately £60,000.
Advance rate of up to 90% available.
Discount fee of between 1.5-3%
Service fee of between 0.25-3%
Full credit control service available with invoice factoring.
Optional bad debt protection.
Specialist construction finance options available, such as payment of staged invoices.
Won the ‘Invoice Finance Provider of the Year’ award in 2015 from Credit Today.
3. Lloyds Bank Commercial Finance
Lloyds Bank Commercial Finance is one of the top 10 invoice finance companies in the UK. It is one of the ‘Big Four’ UK banks and it offers a variety of asset-based lending solutions. The commercial factoring section is very popular within a variety of sectors. These include recruitment, manufacturing, agriculture, and logistics.
Also, customer support is excellent. Each business is provided with a sector specific account manager within their local area. In addition, customers can access a powerful online portal. This fabulous tool shows a breakdown of potential available capital and account statistics.
Both invoice factoring and discounting is available.
Minimum turnover required is approximately £50,000, although start-ups will be considered.
Advance rate of up to 90% available.
A 6-month trial is available, with a full refund on service fees if you are not satisfied.
Support for multiple currencies.
You must have established sales ledger management and credit control procedures in place.
4. HSBC Invoice Finance UK Ltd
HSBC offers specialist invoice finance to business of all sizes. As major internatioal bank, HSBC has vast experience throughout the world. Consequently, it is also one of the best invoice finance providers for businesses involved with importing and exporting. HSBC also has a network of international offices. international offices. This could be useful if you operate within Europe, America, Asia, the Middle East, or Africa,
HSBC may also base their funding decisions on the projected turnover of your business. Therefore, if you are a start-up operating within a high-growth area, you may still be able to access invoice finance. If you are approved, you will benefit from a dedicated account manager. Your account manager will ensure you are making the most of the factoring service.
Both invoice factoring and discounting is available.
Minimum projected turnover required is approximately £500,000.
Advance rate of up to 90% available.
Financing provided in any major currency
In-house legal team with credit protection available.
Access to a full-featured online account portal.
A dedicated credit control service available with invoice factoring.
Global team will assist with international debt collection.
Ideal for businesses which operate globally.
Minimum contract terms will apply.
5. Metro Bank SME Finance
Metro Bank is the first bank to launch onto the UK high street in 150 years. It is having a huge impact on the industry. The bank is known for its unique approach. Its branches are open 7 days a week and it also provides excellent online banking features.
Many of these features carry through to the banks invoice finance offering. Furthermore, Metro Bank have taylored their offering to appeal to SMEs. In 2013 Metro Bank acquired the popular finance company, SME Finance. Consequently, customers benefit from excellent service and an expert knowledge of invoice discounting and factoring.
Both invoice factoring and discounting is available.
Financing is limited to £100,000 for start-ups and smaller businesses.
Advance rate of up to 85% available.
Invoice factoring uses the in-house Metro Bank credit control team.
Applications are reviewed within 1 hour, with approved funds paid within 12 hours.
Access to the E3 online management portal.
A service fee of 1-3% applies.
Access to a finance relationship manager.
No setup charges or minimum fees.
Flexible contracts terms, with just 28 days’ notice required to end the agreement.
6. Skipton Business Finance
Skipton Business Finance is an independent division within the Skipton Building Society Group. This well know Building Society is one of the oldest traditional financial institutions in the UK. This provider is known for its industry-leading customer service. It boasts a localised service that focuses on the areas of Manchester, Birmingham, Leeds, and Bracknell.
This means that decisions are made at a local level, by the branches own account management teams. Furthermore, Skipton BS are keen to form long-term financing relationships. Skipton BS also offers a diverse range of invoice finance products. However, the ‘Skipton Select’ offering is their most popular. This is because your business only needs to pay a monthly fee. Instead of paying the usual annual fees and transfer fees.
Both invoice factoring and discounting are available with bespoke solutions for each business.
No minimum turnover requirement.
Advance rate of up to 90% available.
Access to funds of between £25,000 and £5million.
A three-month trial is available, with no tie-in to a long-term contract.
Access to an online account 24/7.
Transparent fees.
Interest-free invoice factoring available.
Direct telephone access to a finance relationship manager and an account executive.
7. Bibby Financial Services
Bibby is another top invoice finance provider. Bibbly offers both factoring and discounting services to businesses of all size. The firm specialises in offering flexible and customisable finance products to specific to industries. These include recruitment and construction.
Bibbly operates at a global level. However there are also 19 local offices throughout the UK and Ireland. Customer service teams are available via email, live chat, and telephone. Many businesses choose Bibby Financial Services because of the company’s flexible approach to fees. Fees depend on the size of your business, the finance required, and the industry you operate in.
Both invoice factoring and discounting are available.
Open to SME’s with a turnover of below £300,000.
Advance rate of up to 100% available.
No long contracts or setup fees for small businesses.
An online portal with access to account funding.
Specialist sector financing options are available, including construction finance and recruitment finance.
Back-office support with contractor payment is available, such as calculating PAYE, National Insurance and VAT.
Businesses must have been operating for more than 6 months, with a capable management team.
8. RBS Invoice Finance
The Royal Bank of Scotland is one of the largest banks in the country. Unsurprisingly, their Invoice Finance Division has extensive experience and is one of the largest providers in the UK. Their finance services are reliable, straightforward, and simple to manage.
Many customers choose RBS Invoice Finance because of the powerful FacFlow account system. This system is designed to offer paperless account management. It's key features are the ability to manage financing, produce reports and apply for funding. Plus, the RBS finance team will provide your business will full system training. Then you will be able to make the most of the available features.
Both invoice factoring and discounting are available.
Minimum turnover required is approximately £250,000.
Advance rate of up to 90% available.
Access to the online FacFlow system to manage your invoice financing account.
Won the ‘Best in Asset-Based Lending and Invoice Finance’ award in 2015.
Specialist factoring and discounting options available for industries such as, haulage and manufacturing.
Proof of robust credit control processes is required for invoice discount services.
Businesses are assigned a relationship manager.
9. Close Brothers Invoice Finance
Close Brothers Group Plc has been a leading financial player since 1878. The Close Brothers Invoice Finance offering is part of their merchant bank. The company is known for its range of specialist solutions including both invoice discounting and financing services.
The services are geared towards businesses with a turnover above £500,000. The company deals with businesses throughout the UK and Ireland. It is able to offer finance to suit your specific business objectives, your sector, and your turnover. Their offering includes the Liquidity Plus add-on. This service provides access to 100% of invoice value when an immediate cash injection is required.
Both invoice factoring and discounting are available.
Minimum turnover required is approximately £500,000.
Advance rate of up to 90% available, or 100% with the Liquidity Plus service.
A bespoke fee structure which reflects the requirements of each customer.
Won the Moneyfacts award for the ‘Best Factoring and Invoice Discounting Provider’ for 6 years in a row.
Access to the IDeal account platform, which provides full control of your financing account and automatically reconciles incoming payments.
Bad debt protection is available.
10. Novuna Business Cash Flow
Novuna Business Cash Flow is a large invoice finance company. It specialises in providing debtor finance to businesses with a turnover of at least £50,000. The company is known for its innovative products, high levels of customer service and low fees. Consequently. this make it a popular choice with SMEs looking for a quick cash injection.
For start-ups and smaller businesses, the ‘Inspired Cashflow’ service could provide the ideal solution. There is no long-term contract, you simply pay a setup fee and a percentage fee for each invoice processed.
Both invoice factoring and discounting are available.
Minimum turnover required is approximately £50,000.
Advance rate of up to 90% available.
The service fee is 0.45% for businesses with a turnover of more than £10 million.
Smaller businesses will incur a 5% service fee.
Won the Moneyfacts award for the ‘Best Factoring and Invoice Discounting Provider’ in 2019.
A relationship manager is provided and will be able to visit your premises to discuss your requirements.
Short-term rolling contracts with a six-month length are available, following a six-month initial trial period.
Bad credit protection is available with all services for 90% of your balance.
The benefits of comparing the top 10 invoice finance companies
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Low rates from 0.1% available
We help businesses grow through invoice finance
Release up to 100% of invoice value
Support for you and your cash flow
Is comparing the top 10 invoice finance companies a good idea?
Comparing the top 10 invoice finance companies is a great idea. Invoice financing has been available as an alternative form of borrowing for many years. However, it is only in the recently that businesses have started to enbrace this form of business finance.
Cash flow is the life blood of your business. However, does your business struggles with late paying customers. If so, it is likely your cash flow also struggles. Your business may have an effective credit control department. But it may not be able to wait lengthy periods for customers to pay. If you operate a small businesses or startup, you will probably feel the pressure from unpaid invoices more than most.
Another great benefit of invoicing finance is the amount your business can borrow. Your credit limit will increase in line with your turnover.
Also, if you opt for invoice factoring, your business could free up valuable time spent chasing late payments. Instead, the factoring company will be experienced at collecting unpaid invoices. The lender will liaise with your customers to ensure quick and smooth payments. This enables you to get on with running your business.
However, if you prefer to retain control of your accounts receivable, then Invoice Discounting is a better option.
Ultimately, when you compare the top 10 invoice finance companies, you may discover a more flexible form of funding for your businesses. For example, loans and overdrafts can be very onerous and difficult to arrange. If your sales are growing it is important that your cash flow maintains pace. This can be difficult if your invoices do not get paid on time. Invoice financing will untie funds within your sales ledger. this way, your money works harder for your business.
Compare the top 10 invoice finance companies
At Business Comparison, we specialise in providing businesses with access to flexible finance solutions. We hope this list of the top 10 invoice finance companies has proved useful. We aimed to provide you with some insight into the options available to you. As a broker, we have partnered with a variety of invoice discount and invoice factoring companies. This is so you can compare invoice finance options to find the best deal.
Do you operate a business with a long payment collection cycle. For example retail, manufacturing, construction and transport industries. If so, then invoice finance could quickly improve your cash flow. Would you like to find out more? Then simply complete our quick online form. We will provide you with quotes from a range of traditional financial institutions, independent lenders, and groups of individuals.
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