What Is a Fractional CFO?
Why Financial Leadership Is No Longer Optional
Growing a business means dealing with increasing financial complexity, from forecasting and funding to reporting and risk management. Yet many SMEs and startups aren’t ready to bring in a full-time Chief Financial Officer.
That’s where a fractional CFO becomes a game-changer.
What Is a Fractional CFO?
A fractional CFO is a part-time, experienced finance executive who provides strategic financial leadership to businesses that don’t yet require (or can’t afford) a full-time CFO. They work flexibly, often across multiple clients, and focus on high-level financial planning, budgeting, cash flow management, and decision support.
In short, they offer all the expertise of a CFO at a fraction of the cost.
Key Aspects of a Fractional CFO
Many businesses also utilise fractional CFOs to enhance their internal systems before a funding round or lender application. For instance, if you’re applying via Funding Agent, a fractional CFO can help prepare forecasts, refine use-of-funds, and create finance packs.
What’s the Difference Between a CFO and a Fractional CFO?
A fractional CFO does almost everything a full-time CFO would, but on your terms and within your budget.
Benefits of Hiring a Fractional CFO
Hiring a fractional CFO isn't just a cost-saving decision; it can be a strategic advantage:
Strategic financial guidance
They bring years of experience to help you make informed, confident financial decisions.
Improved financial performance
By optimising cash flow, budgets, and margins, they directly impact profitability.
Reduced financial risk
A good CFO anticipates financial challenges and builds buffers before they hit.
Access to diverse expertise
Many fractional CFOs have experience working across various industries, funding stages, and business models.
More time to focus on growth
By handling finances, they free up founders to focus on what they do best: building the business.
When Should You Hire a Fractional CFO?
Consider bringing in a fractional CFO when:
- You're preparing for investment, loans, or scaling your financial infrastructure
- You’re facing cash flow issues or forecasting challenges.
- Your business has grown beyond basic bookkeeping.
- You need help with investor reporting or board-level strategy.
- You want to ensure your financials are ready for a Funding Agent application
What Does a Fractional CFO Do?
Many businesses rely on fractional CFOs during intense periods like funding rounds, product launches, or market expansion.
How to Hire a Fractional CFO in the UK
Most founders approach it like this:
- Define the scope (e.g. 2 days/month, fundraising support, reporting overhaul)
- Use trusted networks (e.g. LinkedIn, industry Slack groups, or platforms like FD Capital)
- Check track record (Have they worked in your sector or stage?)
- Agree on engagement model (Hourly, day rate, or project-based)
Funding Agent and Fractional CFOs: A Smart Growth Combo
At Funding Agent, we work with many businesses that bring in fractional CFOs to improve funding outcomes. Whether you're exploring invoice finance, asset loans, or equity capital, your CFO helps ensure:
- Your finances are presented clearly
- Lenders/investors see a growth-ready business.
- You're requesting the right amount, with a clear plan.
How Will a Fractional CFO Benefit Your Business?
A fractional CFO gives your business exactly what it needs: financial leadership, without the full-time expense. For growing companies, startups, and founders preparing to raise funding, it’s one of the smartest decisions you can make.
And when you're ready to explore your finance options, Funding Agent can help connect you with both capital and expert support, including experienced part-time CFOs.
Ready to raise funding or improve your financial clarity?
Visit Funding Agent to explore flexible finance options and connect with an expert CFO support to accelerate your growth.
FAQs
What is a fractional CFO?
A fractional CFO is a part-time finance executive who provides high-level strategic support to growing businesses. They help with budgeting, cash flow, financial planning, and investor readiness, without the cost of a full-time hire.
What’s the difference between a CFO and a fractional CFO?
A full-time CFO is a permanent executive employed by one company. A fractional CFO works part-time or on a project basis for multiple businesses, offering the same strategic value but with more flexibility and at a lower cost.
When should I hire a fractional CFO?
You should consider hiring one when you're scaling, raising funding, dealing with financial complexity, or need better forecasting, budgeting, or financial reporting. They’re especially helpful before applying for funding through Funding Agent.
How much does a fractional CFO cost in the UK?
Costs vary, but most charge between £500–£1,500 per day, depending on experience and industry. This is significantly lower than a full-time CFO salary, making it a cost-effective option for SMEs and startups.
