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Top Invoice Financing Companies in Jan 2022

Top UK Invoice Financing Companies: What's the Best Option for You?

Contributors: Nicola Date, Katherine Read. Reviewed by Francis Hui

Choosing the Right Company for Invoice Finance Can Make or Break Your Business. It's Important to Research Your Options Before Making a Decision Because Not All Companies Are Created Equal. There Are Many Different Companies Offering This Type of Service in the UK Today So We've Set Out to Find Some of the Best Options on Offer!

invoice financing

The Top 10 UK Invoice Financing Companies in 2022

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Invoice financing allows 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. With over 40 000 SMEs using invoice financing in the UK, 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) in the United Kingdom, borrowers should research carefully before choosing a provider.

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

#01. MarketFinance

Founded in 2011, MarketInvoice 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 process1, 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
marketinvoice

#02. HSBC Invoice Finance

With operations in 65 countries and over 40 million customers, 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.

  • Advance rate: Up to 90%
  • Minimum client turnover (approx.): Projected business turnover over £500k (including start-ups)
  • Application process: Via telephone
  • Speed of Decision: Undisclosed
hsbc

#03. Skipton Business Finance

Skipton Business Finance is a subsidiary of Skipton Building Society, 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.

  • Advance rate: Up to 90%
  • Minimum client turnover (approx.): No minimum
  • Application process: Via telephone
  • Speed of Decision: Undisclosed
skipton business finance

#04. Metro Bank

Founded in 2010, 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.

  • Advance rate: Up to 90%
  • Minimum client turnover (approx.): Undisclosed
  • Application process: Via telephone
  • Speed of Decision: Undisclosed
metro bank

#05. RBS FacFlow

RBS Invoice Finance is a subsidiary of the Royal Bank of Scotland and one of the country’s leading invoice finance companies. Facflow, an online financing platform2, is at the heart of their 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.

  • Advance rate: Up to 90%
  • Minimum client turnover (approx.): £250K
  • Application process: Undisclosed
  • Speed of Decision: Undisclosed
rbs

#06. Bibby Financial Services

Bibby Financial Services was established in 1982 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 service3, as indicated by a client satisfaction percentage of 93%.

  • Advance rate: Up to 100%
  • 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
bibby financial services

#07. 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.

By doing a quick search, you’ll discover that Barclays has a dubious reputation, after being fined for bad practice. You might want to do your research to decide if you can forgive these past shortcomings.

  • Advance rate: Up to 90%
  • 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
barclays

#08. Aldermore Invoice Finance

Aldermore is a UK-based firm that focuses on small to medium-sized businesses. The company has approximately 37 000 corporate customers and has provided £2.2 billion in funding4. With a typical offering, Aldermore is similar to other banks in the invoice finance area.

Aldermore, on the other hand, has one of the best acceptance rates in the business, thanks to a flexible and tailored financing approach, making it a good option for people who have been turned down elsewhere.

  • Advance rate: Up to 90%
  • Minimum client turnover (approx.): £250K
  • Application process: Via telephone
  • Speed of Decision: From a few days to a few weeks, depending upon your requirements
aldermore

#09. Close Brothers Invoice Finance

Close Brothers Invoice Finance is a subsidiary of the Close Brothers Group, one of the UK’s most well-known merchant banks. SMEs and startups5 should look for another funding provider because the firm focuses on larger companies with a revenue of more than £500k per year.

  • 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
close brothers

#10. Hitachi Capital

With over 800 000 customers, Hitachi Capital 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 hourse.

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

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.

In addition, no matter what financial decisions you make, it’s always best to consult an independent financial adviser 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/

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rachel w

Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
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Written by
John Lawson
Founder SovereignBoss

John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.
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Reviewed by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
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Katherine Read
Consumer Affairs Writer

Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.
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Nicola Date
Writer & Journalist

Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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