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Top 5 Invoice Factoring Companies in the UK (2024)

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.

What is a factoring company?

The factoring company pays a large portion of the invoices up-front (typically 70-90%) while the remainder is paid (minus fees) once the invoice amount is collected in full. The factoring company takes responsibility for collecting payments from the customers.

In invoice factoring, the responsibility of collecting payments lies with the factoring company. The factoring company is an expert in collecting and managing invoice payments from customers so you can focus more on your high-leverage tasks.

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Top 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.

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

We at ComparedBusiness are experts at saving your time and money when it comes to invoice factoring.  Just submit your requirements in less than 2-mins and ComparedBusiness will get back to you with Quotes from a list of top factoring companies. You can pick and choose the best option for your business.

Written by:

Henry Baker
Henry Baker
Henry Baker, an adept financial & business copywriter in England, boasts a decade-long career collaborating with top-tier UK financial institutions. Renowned for his skill in translating intricate finance into captivating content, he's a trusted authority in simplifying complex concepts for diverse audiences.

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