Best invoice factoring companies in the UK

Invoice factoring has become one of the most widely used cash-flow solutions for UK businesses invoicing on payment terms. From recruitment agencies funding weekly payroll to fast-growing SMEs bridging working capital gaps, factoring unlocks cash tied up in unpaid invoices within 24 hours.

What is invoice factoring?

You sell unpaid invoices to a factoring company for upfront cash, typically 70-90% of value. The factor collects from your customers and releases the balance, minus fees, once payment lands. It suits businesses without a dedicated credit control function, and those whose growth is outpacing their cash.

How to compare providers

• Advance rate, the percentage released upfront
• The fee structure, both service charge and discount rate
• Contract length and exit terms
• Whether they specialise in your sector
• Funding speed
• Concentration limits, if you have a few large debtors
• How collections are handled, and how that will feel to your customers

What it costs

Charges break into a discount fee, effectively interest on funds drawn, and a service fee for running the facility. Pricing varies with turnover, sector, debtor quality and facility size, which is precisely why comparing providers is worth the effort.

The providers

Thirteen firms lead the UK market, including eCapital, Time Finance and Sonovate. No single provider is best for all businesses.

For an independent, no-obligation review of your options, call 0330 0438 011.