Reviewed: 3rd February 2016
If you’re looking for the best invoice finance company for your business, you’ll need to spend some time going through all the options. Numerous new providers have entered this growing market in recent years, and with the established high street names also offering factoring and discounting services, it can be difficult to know where to start.
We’ve put together a list of large organisations and specialist lenders to give you a broad idea of what’s available. So let’s start with the independent providers:
Bibby Financial Services offers invoice factoring and discounting services to SMEs and larger corporations throughout the UK. As one of the leading providers of debtor invoice finance, with more than 7,000 businesses on their books, Bibby can offer advice to specific industries such as construction and recruitment.
With customised, flexible solutions to the problem of raising regular working capital, you benefit from advice tailor-made to your business as well as their vast experience of dealing with a wide customer base. The company operates from 19 local offices throughout the UK and Ireland.
Hitachi Capital Invoice Finance is a large provider of debtor finance to SMEs with an annual turnover of £100,000 to £10 million. They offer short-term rolling contracts of six months following an initial six-month trial period, so you are not tied in to a long contract and have time to establish whether invoice financing is for you.
The company has been in business since 1982. They offer simple but innovative products, and have a reputation for high levels of customer service. The fact that no additional charges are made is a draw for many smaller companies looking for regular injections of working capital.
Market Invoice has developed an online platform for invoice factoring, supported by global investors. The company is a member of the Peer-to-Peer Finance Association, and their system runs in a similar way to crowdfunding.
Invoices are ‘sold’ to a number of buyers, and the money advanced within 24 hours. The system is available 24 hours a day, and with transparent fees of between 1% and 3% of each invoice’s value, Market Invoice offers a compelling package of services, particularly for smaller businesses watching their costs. They also offers valuable flexibility with no contracts or hidden fees.
Close Brothers Invoice Finance is part of merchant bank, Close Brothers Group Plc. Originally established in 1878, this leading financial player is known for its expertise within specialist markets, and were voted Money facts ‘Best Factoring & Invoice Discounting Provider’ in 2015.
Close Brothers offers factoring and discounting, with up to 90% of the value of approved invoices being available. They serve small and medium sized businesses throughout the UK and Ireland, and will take into account your objectives in business as well as turnover and the industry in which you operate.
IGF has been in business since 1997, and form part of the Greater London Enterprise Group. As such, they claim to offer greater flexibility than the major banks, and with local advisors, can tailor a factoring or discounting package to each business.
The unique selling point of this factoring provider appears to be championing the growth of SMEs, meeting their ever-changing needs, and adapting the products offered as each business achieves its potential.
As part of the Royal Bank of Scotland Group, RBS Invoice Finance has the backup and support of this banking giant. With extensive experience in every aspect of business lending, RBS is one of the largest factoring companies in the UK.
They offer an online platform called Facflow, which helps you manage your factoring or discounting facility 24 hours a day. You can view transactions, the invoices sold, and monies received, and there’s a helpline available for any urgent queries.
HSBC’s dedicated invoice factoring and discounting division offers specialist finance to businesses of all sizes, and due to their international status, could be a good choice for import/export businesses looking to secure working capital quickly.
They operate worldwide, with offices throughout Europe, America, Asia, Africa and the Middle East. With vast experience of helping businesses secure vital funding, their knowledge across all industries should not be ignored.
Lloyds Bank Commercial Finance is a leading provider of factoring and confidential invoice discounting solutions, as well as asset-based lending. The company has sector-specific experience and offers a dedicated Client Manager as your ongoing point-of-contact.
Specialist sectors include construction, manufacturing, recruitment, agriculture and logistics, and with such wide experience, Lloyds aims to offer bespoke solutions that meet individual business needs.
Part of Skipton Building Society Group, Skipton Business Finance is an independent company, but with the backup of one of the oldest financial institutions in the world. They offer direct telephone access to a dedicated Relationship Manager, transparent fees and costs, an online account that’s available 24/7, and industry-leading customer service.
Their three-month trial means that if you’re not sure about invoice finance, there’s no tie-in to a long contract. Factoring and discounting products are tailor-made to each business.
Aldermore was originally set up in 2009, in the midst of the economic recession. Their straightforward model of banking has been successful, offering flexible products delivered in what was then an innovative style.
Now one of the top factoring companies in the country, their debtor finance solutions provide flexibility and fee transparency to SMEs in need of fast, regular access to working capital. The company was awarded ‘Invoice Finance Provider of the Year’ in 2015, by Credit Today.
For more help in deciding on the best invoice finance provider for your business, get in touch with us here at Real Business Rescue. We have the depth of knowledge and industry links needed to guide you in the right direction.