Call us: 03330 113622

Blog home
Categories
Popular Posts
Recent Posts
Archive

• 05 Aug

  Independently Owned Invoice Finance Companies

  

  Independently owned invoice finance companies are those that are not owned by the big high-street banks. At present, there are over 100 invoice finance companies in the UK, of which only a small handful are owned, or part of high street banks.

  This is a list of all the invoice finance companies currently serving the UK. If you need to be introduced to a provider please speak to us on 03330 113622.

  Independently Owned Invoice Finance Companies

  Of course, that definition of "independent" is broad. Meaning not owned by one of the big banks. Although, there are many other funders that are owned by other types of banks. For example, a merchant bank.

  If you are seeking a provider that is not part of a banking group, these divide into two categories. Firstly, there are those that are part of big trading groups. The second group are small independents that are not part of larger groups or organisations.

  Reasons For Choosing An Independent

  The type of funder that you choose depends upon your reasons for choosing an independent in the first place. These are a few of the reasons that we sometimes hear:

  • "I don't want to get my invoice finance from my bank". Often the reason for this is that they fear that their bank could withdraw all their facilities at once. At least if the invoice financing is separate, that might remain in place, should the overdraft be withdrawn.
    
    
  • "Service levels will be better from an independent provider". This may be the case, but may not be true in all cases. Research suggests that service levels from independent providers do tend to exceed those of banks, but service perceptions often have to be weighed against the cost of your facility.

  Reasons For Using Your Own Bank

  Equally, there are reasons that are often given for choosing to use the client's own bank. These include:

  • "Keeping it all together" - if you use the same provider for your banking and for your invoice finance, often all facilities can all be managed together.
    
    
  • "The cost will be less" - this may be the case, depending upon your situation. In some cases, an independent will be able to offer cheaper rates or will quote in a situation where your bank has declined. It depends on your circumstances.

  Making The Right Choice

  The most important thing is that you make the right choice for your business.

  Prejudice for or against using a bank is unlikely to be the most important factor in your decision. Finding the right product, at the right rates is likely to be more important.

  Often an independent will be able to be more flexible about funding. They will sometimes be able to help struggling companies where banks would be unable to assist. The unfortunate thing is that most people just go straight to a bank that they know, rather than shopping around to see what is on offer from the independent invoice finance companies. A broker can help you understand what is on offer and help you make the best decision.

  By Glenn Blackman