Invoice factoring is a financial agreement in which a business sells its invoices (also called account receivables) to a factoring company at a discount. With invoice factoring, a business gets access to immediate cash flow instead of waiting for months for the invoices to get paid.
Before listing the top invoice factoring companies in the UK, let us look back at what a factoring company is and what it does.
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Top 6 Invoice Factoring Companies in the UK
There are many lenders in the UK providing invoice factoring services. Choosing the right one can be quite a task. Our team has provided a list of top factoring companies in the UK to make the process easier for you.
| Company | Funding Issued | Advance Rate | Minimum Turnover | Rating (TrustPilot) | Unique Selling Points |
|---|---|---|---|---|---|
|
Kriya |
£3.5bn+ |
Up to 90% |
Not disclosed |
4.5/5 |
Access to 90% of funds within 24 hours |
|
Bibby Financial Services (BFS) |
£6bn |
Up to 100% |
Small businesses under £300K |
4.9/5 |
Simple qualifying requirements
|
|
Novuna |
Not disclosed |
Up to 90% |
£50,000 per year |
4.6/5 |
Flexible 6-month trial contract, then rolling |
|
Aldermore Invoice Finance |
£2.2bn |
Up to 90% |
Approx. £250,000 |
4.6/5 |
High approval rate (90%) |
|
Ultimate Finance |
£5bn |
Up to 95% |
No minimum requirement |
4.9/5 |
No minimum turnover, funding up to £5M |
|
Sonovate |
£5bn |
Up to 95% |
No minimum requirement |
4.6/5 |
4.6/5
Maximum funding up to £10M
|
Overview
- Founded: 2011
- Total Funded: £3.5bn+
- Rating: 4.5/5 on Trustpilot
Key details
| Term | Details |
|---|---|
|
Advance rate |
Up to 90% |
|
Fee structure |
0.2% to 3.5% |
|
Minimum turnover |
Not disclosed |
Application and processing
- Fill out a simple, short online form to book a demo on a 30-minute call with a financial expert from Kriya.
- If you don’t want to book a demo, you can also get information about your inquiry by calling their customer care number or filling out a short form on their website.
- According to Kriya’s website, you can get access to 90% of funds within 24 hours.
Unique selling points
- Strong backing from industry giants of the UK such as Santander, Barclays, Northzone and the British Business Bank.
- Customers seem to trust Kriya for its financial services, which is reflected by the 4.5 rating on Trustpilot, which reflects trust and reliability.
Overview
- Founded: 1982. BFA is part of the Bibby Line Group, established in 1807.
- Total Funded: Manages more than £6bn in turnover annually.
- Rating: 4.9/5 on Trust Pilot
Key details
| Term | Details |
|---|---|
|
Advance rate |
Up to 100% |
|
Fee structure |
Not specifically listed, but various products are available. |
|
Minimum turnover |
Small and medium businesses under £300K turnover are qualified to apply. |
Application and processing
- Online and telephone applications provide flexible options for inquiries and setup.
- Cash funding can be available in a short time. A specific timeline is not explicitly mentioned.
Unique selling points
- BFS is one of the UK’s largest invoice financing companies. According to their website, they support over 9,000 businesses in more than 9 different countries across Asia and Europe.
- BFS serves customers across nations and has a customer satisfaction rate of 87%.
- Diverse industry coverage, includes transport, manufacturing, construction, and more.
- Winner of “Best Factor and Invoice Discounter” at the 2017 NACFB Awards.
Eligibility requirements
BFS has very simple qualifying requirements for their funding services, such as:
- Your business must have been in trading for at least 6 months.
- You should have a capable management team.
Overview
Formerly known as: Hitachi Capital
Key Industry: Retail point-of-sale finance
Rating: 4.6/5 on TrustPilot
Key details
| Term | Details |
|---|---|
|
Advance rate |
Up to 90% |
|
Fee structure |
Transparent and simple |
|
Minimum turnover |
£50,000 per year |
Application and processing
- Get a quote online or through a telephone application, this method proves to be convenient for customers.
- Decisions can be made in as little as 24 hours, to provide quick access to funds.
Unique selling points
- Flexible contractual terms with an initial 6-month trial followed by a rolling contract.
- A dedicated relationship management team provides personalised service, including visits to your office.
- Novuna has secured multiple awards, including Best Direct Personal Loan Provider and Customer Service Champion.
- Different product offerings include invoice discounting, selective invoice finance, and more.
Overview
- Founded: 2009
- Focus: Small and medium-sized businesses in the UK
- Client Base: Over 37,000 business customers
- Funding Issued: £2.2 billion
- Rating: 4.6/5 on TrustPilot
Key details
| Term | Details |
|---|---|
|
Advance rate |
Up to 90% |
|
Fee structure |
Not specified; flexible options available |
|
Minimum turnover |
Approximately £250,000 |
Application and processing
- You can find details about the application via telephone or email.
- Fund transfers can take a few days to weeks, depending on the client’s needs.
Unique selling points
- Dedicated relationship manager with regular annual reviews.
- The high approval rate of 90% acceptances.
- Aldermore offers financing options other than invoice factoring, like invoice discounting, and selective invoice discounting.
- Award holder ‘Invoice Finance Provider of the Year’ by Credit Today.
Overview
- Founded: 2011
- Funding Issued: £5 billion over 17 years
- Rating: 4.9/5 on TrustPilot
Key details
| Term | Details |
|---|---|
|
Advance rate |
Up to 95% |
|
Fee structure |
Not mentioned on the website |
|
Minimum turnover |
There is no minimum requirement |
Application and processing
- The application process involves an online inquiry, followed by a meeting.
- Ultimate Finance provides exceptional customer service, and you can get funding within 24 hours.
Unique selling points
- No minimum turnover requirement; the maximum funding limit is up to £5M.
- High approval rate and exceptional customer service.
- There are all kinds of financial lending options, like asset finance, invoice finance, bridging finance, and structured finance.
- Winner of ‘Best Invoice Finance Provider’ at the Growth Finance Awards 2019.
- Provides dedicated and specialised relationship managers for their customers.
- Support is available via customer care landline and online chat.
Overview
- Founded: 2013
- Funding Issued: Over £5bn in 44 countries
- Rating: 4.6/5 on TrustPilot
Key details
| Term | Details |
|---|---|
|
Advance rate |
Up to 95% |
|
Fee structure |
Not mentioned on the website |
|
Minimum turnover |
There is no minimum requirement |
Application and processing
- The application process is all online.
- The speed of decision is remarkable with less than 24 hours.
- After finalising your agreement, you can withdraw your funds within a day.
Unique selling points
- No minimum turnover requirement. According to the Sonovate website, you can get maximum funding of up to £10 million.
- No strict withdrawal terms. Flexibility to withdraw funds whenever you need them.
- Sonovate supports International, multi-currency payments.
- This feature of real-time monitoring really stood out to us. With this, you can monitor each invoice payment in real time with the ability to make adjustments where needed.
How Does Invoice Factoring Work?
Invoice factoring works in 4 simple steps:
Factoring agreement: You enter into an agreement with the factoring company outlining the terms of invoice finance like factor rate, fee structure, etc.
Sell goods & services: You sell your goods and services to customers and invoice them.
Invoice submission: You submit your invoices to the factoring company.
You get the money: The factoring company pays up to 90% of the invoice value upfront. The rest is paid (after fee deduction) once the invoices are cleared.
ComparedBusiness Can Help You With Top Factoring Options In The UK
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FAQs
Invoice factoring is a financial agreement in which a business sells its invoices (also called account receivables) to a factoring company at a discount. With invoice factoring, a business gets access to immediate cash flow instead of waiting for months for the invoices to get paid.
Most factoring companies can provide funds within 24-48 hours after you submit your invoices. For example, companies like Kriya and Ultimate Finance offer access to up to 90% of the invoice value within 24 hours.
Some factoring companies have a minimum turnover requirement, while others don’t. For example, Novuna requires a minimum turnover of £50,000 per year, but Ultimate Finance and Sonovate do not have any turnover restrictions.
Yes, invoice factoring is a good option for small businesses in the UK that aim to improve cash flow. Small businesses opt for invoice factoring so that the operations of the business don’t get stuck because of the delayed payments of the clients.
