Factoring Finance Reviews

Factoring Finance is a UK-based financial brokerage that specialises in arranging invoice finance and factoring solutions for businesses, particularly small and medium-sized enterprises (SMEs) that may find it difficult to secure funding from traditional banks. It acts as a broker rather than a direct lender, connecting clients with a panel of third-party funders. The firm is authorised and regulated by the Financial Conduct Authority (FCA), which provides a degree of regulatory oversight. Its service model emphasises speed, flexibility, and personalised support for businesses looking to improve cash flow.

Key features

Factoring Finance offers a broker-led service with access to a panel of more than 20 specialist funders. This may increase the likelihood of approval for businesses with less typical credit profiles. Each client is assigned a dedicated account manager, and the initial consultation and eligibility check are provided without upfront fees. The firm also provides an online portal that integrates with accounting software such as Xero, QuickBooks, and Sage, allowing for easier invoice submission. A real-time reporting dashboard enables borrowers to track facility usage and debtor aging.

• Specialist focus on invoice finance and factoring, offering tailored solutions
• Access to a wide panel of lenders, which may improve approval chances
• Fast funding often within 24 hours of application approval
• FCA regulated, providing consumer protection and transparency
• Personalised broker service with dedicated account management
• Transparent fee structure explained upfront with no hidden fees
• Can work with businesses that have bad credit or are start-ups
• Flexible facilities that grow with the business's turnover

Eligibility

Eligibility requirements vary by product. For spot factoring, there is no minimum trading period. Full factoring typically requires 3 to 6 months of trading history, while invoice discounting usually requires at least 12 months. Minimum annual turnover thresholds also differ: no minimum for spot factoring, around £120,000 for full factoring, and £250,000 for discounting. Certain high-risk sectors such as gambling, adult entertainment, speculative finance, and some direct-to-consumer models may be excluded. The service is available UK-wide, though some funders may have restrictions on Scotland or Northern Ireland.

Loan options

Factoring Finance provides several invoice-based funding products through its panel of lenders. The main options are invoice factoring, invoice discounting, spot factoring (single invoice discounting), and construction factoring. Each product has different funding limits, terms, and fee structures tailored to different business needs.

• Invoice Factoring: £5,000 to £5,000,000. Ongoing facility with no fixed term (rolling contract). Minimum monthly invoicing of £10,000. Discount rate of 0.5% to 3.5% per month plus a service fee of 0.5% to 2% of turnover. Arrangement fee typically 0.5% to 1.5% of the facility, monthly service fee, discount rate, and termination fee if cancelled early. Up to 90% of invoice value can be advanced within 24 hours. Credit control and debt collection are managed by the factor. No personal guarantee required in many cases for disclosed factoring.
• Invoice Discounting: £10,000 to £10,000,000. Rolling contract with 30 to 90 day notice period. Minimum monthly invoicing of £20,000, typically 12+ months trading history. Discount rate of 0.5% to 2.5% per month plus service fee of 0.2% to 1% of turnover. Arrangement fee 0.5% to 1.5% of the facility, plus audit fees and termination fee. This is a confidential facility so customers are not aware of the arrangement. The borrower retains control of the sales ledger and credit control. A personal guarantee from directors is usually required.
• Spot Factoring (Single Invoice Discounting): £1,000 to £50,000 per invoice (aggregate facility up to £500,000). Per-invoice basis with no long-term contract. Interest charged as a flat fee of 1% to 5% per month on the invoice amount. Service fee per invoice of 1% to 3%. No minimum turnover required, and no monthly or annual fees. Suitable for occasional use or start-ups. Funds can be available within 24 hours. The customer will be aware of the arrangement (disclosed).
• Construction Factoring: £10,000 to £2,000,000. Rolling contract with 30 to 90 day notice period. Minimum monthly invoicing of £15,000 with 6+ months trading history. Discount rate of 1% to 4% per month plus service fee of 0.5% to 2% of turnover. Arrangement fee 1% to 2% of the facility, plus CIS administration and termination fees. Designed for subcontractors and suppliers in the construction industry. Can handle stage payments and retentions. Personal guarantees are commonly required, and a debenture over company assets may be needed.

How to apply

Applications can be started online via the website form or through a telephone consultation. An initial eligibility decision is typically given within 24 hours, and full approval with facility setup may take 3 to 7 business days. Once the facility is active, funds can be released within 24 hours of invoice submission. The following documents are generally required:

• Completed application form
• Latest 3 months of bank statements
• Copy of sales ledger (aged debtor report)
• Details of largest customers (names and payment history)
• Company incorporation certificate
• Proof of ID for directors (passport or driving licence)
• Recent management accounts (if available)

Funding Agent's view

Factoring Finance is a specialist broker that focuses exclusively on invoice-based finance, including factoring, discounting, spot factoring, and construction factoring. Its strength lies in its panel of specialist funders and sector expertise, which may benefit UK SMEs that need to improve cash flow quickly or have less-than-perfect credit histories. However, because it operates as a broker, the final terms are set by third-party funders, and fees from both the broker and the funder may apply. The product range is limited to invoice finance, so businesses seeking term loans, asset finance, or mortgages would need to look elsewhere. Borrowers with B2B invoicing, particularly in construction, manufacturing, and services, may find this service relevant. Those with very small invoice volumes or who prefer a full-service lender may wish to consider other options. The firm's FCA regulation and transparent fee approach add a layer of accountability, but the reliance on debtor creditworthiness and the potential for higher costs compared to traditional bank funding are important considerations.