The best invoice financing companies allow a company to borrow up to 95% of the total amount of an existing receivable as soon as 48 hours after it has been issued.¹

With over 40 000 SMEs using invoice financing in the UK², this is becoming a more popular approach for firms to boost their cash flow.

However, because invoice finance is not regulated by the Financial Conduct Authority (FCA)³ in the United Kingdom, borrowers should research carefully before choosing a provider.

Here are the top 10 invoice financing companies you can consider:

#1. MarketFinance

Founded in 2011, MarketInvoice⁴ is an online invoicing marketplace that connects businesses with a network of investors.

The focus on technology gives MarketInvoice an edge over other invoicing providers.

The entire financing process⁵, from application to payment, is simple thanks to an easy-to-use web platform.

• Advance rate: Up to 90%
• Minimum client turnover (approx.): £100K
• Application process: Short 5-minute online application
• Speed of Decision: Typically within 24 hours, depending on the product

#2. HSBC Invoice Finance

With operations in 65 countries and over 40 million customers⁶, HSBC is one of the world's major banks.

Its services are aimed at businesses with a forecasted turnover of at least £500,000.

Businesses with this kind of turnover can anticipate great customer service and a fully functional web portal called RF on HSBCnet.⁷

• Minimum client turnover (approx.): Projected business turnover over £500k (including start-ups)
• Application process: Via telephone
• Speed of Decision: Undisclosed

#3. Skipton Business Finance

Skipton Business Finance is a subsidiary of Skipton Building Society⁸, one of the oldest building societies in the United Kingdom.

Skipton stands out from the crowd because of its localised service.

Its underwriting and account management teams are located in Leeds, Manchester, Birmingham, and Bracknell.

This means that choices are made locally as part of a long-term relationship, and finance is granted based on your firm's individual merits.

More on Skipton Business Finance:⁹

• Minimum client turnover (approx.): No minimum
• Application process: Via telephone
• Speed of Decision: Undisclosed

#4. Metro Bank

Founded in 2010¹⁰, Metro Bank is a relative newcomer to the British high street.

Despite its youth, the bank has had a significant impact on the UK financial services market.

It offers a unique combination of best-in-class online banking and branches available 7 days a week.

See how Metro Bank Invoice Financing¹¹ compares.

• Minimum client turnover (approx.): Undisclosed
• Application process: Via telephone
• Speed of Decision: Undisclosed

#5. RBS FacFlow

RBS Invoice Finance is a subsidiary of the Royal Bank of Scotland and one of the country's leading invoice finance companies.

Facflow¹², an online financing platform, is at the heart of its invoice finance product.

It's a powerful technology that allows for a completely paperless workflow, despite its archaic UI.

RBS Invoice Finance also provides comprehensive training on the technology as standard.

• Minimum client turnover (approx.): £300K¹³
• Application process: Undisclosed
• Speed of Decision: Undisclosed

#6. Bibby Financial Services

Bibby Financial Services was established in 1982¹⁴ and provides invoice finance to businesses all around the world.

Its parent company, formed in 1807 when John Bibby began his career as a shipowner, is one of the UK's oldest family-owned businesses.

The company has survived and flourished by focusing on developing great customer service, as indicated by a client satisfaction percentage of 93%.

More details about Bibby's Invoice Financing:¹⁵

• Minimum client turnover (approx.): Not disclosed, but open to SMEs with under £300K turnover
• Application process: Online and telephone application
• Speed of Decision: Not disclosed

#7. Barclays Invoice Financing

With almost 300 years in the financial services industry, Barclays is one of the largest banks in the UK.

Barclays offers products for larger firms such as Confidential Invoice Discounting.¹⁶

By doing a quick search, you'll discover that Barclays has a dubious reputation, after being fined for bad practice.¹⁷

You might want to do your research to decide if you can forgive these past shortcomings.

• Minimum client turnover (approx.): At least £100,000 per year to fund some invoices or a minimum of £500,000 annual to fund the whole debtor book
• Application process: Via telephone only
• Speed of Decision: Undisclosed

#8. Aldermore Invoice Finance

Aldermore is a UK-based firm that focuses on small to medium-sized businesses.

The company has approximately 690,000 customers¹⁸ and has provided £3.3 billion in business finance.

With a typical offering, Aldermore is similar to other banks in the invoice finance area.

Where it differs is that it has one of the best acceptance rates in the business.¹⁹

Thanks to a flexible and tailored financing approach, it's a good option for people who have been turned down elsewhere.

• Minimum client turnover (approx.): £250K²⁰
• Application process: Via telephone
• Speed of Decision: From a few days to a few weeks, depending upon your requirements

#9. Close Brothers Invoice Finance

Close Brothers Invoice Finance is a subsidiary of the Close Brothers Group²¹, one of the UK's most well-known merchant banks.

SMEs and startups should look for another funding provider because the firm focuses on larger companies with a revenue of more than £500k per year.²²

• Advance rate: Up to 90% with 100% access with Liquidity Plus
• Minimum client turnover (approx.): £500k per year
• Application process: Via telephone
• Speed of Decision: Undisclosed

#10. Hitachi Capital

With over 800 000 customers, Hitachi Capital, now known as Novuna²³, is one of the world's largest factoring organisations.

The most significant advantage of Hitachi Capital is its customer care.

It has a specialised relationship management team that's available to visit your premises and examine the condition.

Telephone and email support are also available during UK business hours.

• Advance rate: Up to 90%²⁴
• Minimum client turnover (approx.): £50,000 per year
• Application process: Online quote and telephone
• Speed of Decision: Undisclosed

Common Questions

In Conclusion

In conclusion, invoice financing companies provide a unique way to keep cash flow moving for small businesses.

The process is easy and the benefits are high-impact when used correctly.

If you're looking for an alternative or temporary means of funding your invoices while waiting on payment from customers, it's worth speaking with one of these service providers about their plans.

Regardless of the invoice financing companies you choose, with any financial decisions you make, it's always best to consult an independent financial advisor for sound advice.

References:

• www.expertmarket.co.uk/invoice-factoring/top-10-invoice-financing-companies-in-the-uk#link-10-hitachi-capital
• www.merchantsavvy.co.uk/business-finance/invoice-finance-companies/