Is factoring safe for your business?

Is factoring with an independent company safe for your business? Is outsourcing credit control risky? These are just two of the many questions that small businesses ask when considering invoice factoring.

People previously believed that invoice finance carried more risk than a traditional bank facility. Invoice finance companies, and particularly members of the UK Finance association representing finance organisations and their customers are reputable businesses offering their clients security, stability, flexibility and access to cash when they need it.

If you need a flexible line of credit to help manage cash flow, then factoring is a real, and viable option for your business. Rather than trying to do everything yourself, you have access to professional outsourced credit control, 5 days a week with no break for holidays, or those urgent jobs that keep you away from chasing money owed; all this and access to your cash when you need it.

Independent factoring companies usually have credit control teams looking after a smaller number of clients and their debtors. Consequently, they offer a much higher level of service, building valuable relationships across the supply chain, to ensure invoices are paid within agreed terms. Accredited companies such as Partnership Invoice Finance, not only help you with your credit control and cash flow but offer their clients the comfort of knowing this vital aspect of running a business is taken care of; one less thing to worry about.

Many successful businesses struggle with credit control; most of your customers will require credit terms, or take longer than expected to pay invoices, no matter how big or small you are. It’s a constant problem and one that needs managing on a daily basis. Engaging an invoice factoring service, to manage your credit control makes good business sense. You will always need access to cash: no matter how good your credit control is. If payment terms are offered, there is always going to be a gap between completing the work, raising the invoice and receiving funds. Add unexpected delays, the need to pay outstanding bills and before you know it you have cashflow issues. When the brown stuff hits the fan, factoring steps forward and provides a percentage payment of your invoices upfront, effectively turning those sales made on credit into cash sales. No more waiting to be paid.

How invoice finance has evolved.

While invoice finance has been around for thousands of years, only in more recent years awareness has grown, and its popularity has exploded as a viable method of growth and maintaining a healthy level of cash flow. As banks tightened their belts, the number of businesses turning to invoice financing significantly increased and other alternative lenders evolved. There are various reasons, of course, that the invoice finance and alternative finance industries have grown, but one main reason is an increase in the number of late-paying companies which impacts small businesses hard.

Is Invoice Finance Regulated in the UK?

Invoice finance and asset-based finance is still unregulated within the UK by the Financial Conduct Authority (FCA). However, the industry has robust self-regulatory mechanisms and many companies work within agreed frameworks. For example, Partnership Invoice Finance is an accredited member of UK Finance who present a collective voice for the UK banking and finance industry. UK Finance represents firms across the industry, enhancing competitiveness, supporting customers, and facilitating innovation.

UK Finance and its members work with the government and regulators to ensure the guidance they produce is timely, accurate and helps members ensure they operate in the best interests of their customers and to the benefit of the industry as a whole.

As an accredited member of UK Finance, we are at the forefront of the invoice finance industry, but not all lenders are accredited, so it’s crucial that small businesses do their homework and appoint a funder they can trust.

Why you should appoint Partnership Invoice Finance

We want to help your business grow, which is why we offer invoice finance to start-ups, SME’s and those requiring funding up to, and in the region of, £1,000,000. We are a secure, stable, and reputable lender who offer our clients greater levels of transparency and control.

Understanding how your business works is essential for us to develop a programme that aligns with your growth strategy. Our team has extraordinary business experience and we’re committed to making growth happen.

At the heart of every successful organisation is the drive for professionalism at every turn. Our team is made up of dedicated, experienced, and highly professional experts who understand the need for discretion and efficiency.

Don’t just take our word for it, here’s what some of our clients say …

“As a small business eager to grow, we were keen to find a factoring company that could demonstrate a genuine interest in our success and willingness to provide us with a more personable service. From our first point of contact with Partnership Invoice Finance, we have been treated as a valued ‘partner’ and have had a confidence that our business requirements are always taken seriously and dealt with both efficiently and professionally.” Chris Hollins -Director, Buzzing Lab Solution

“Partnership Finance have been an integral component in enabling Elsatex to grow its business tenfold over the past 5 years. With their friendly and personable approach, they are more like an extension of our company with our customers, and this has given us the confidence to be reassured that our debtor’s ledger is in safe hands –whilst we focus on the core elements of our business.” Steve Lowe -Managing Director, Elsatex Limited


Invoice factoring is a fantastic way to get access to your money without giving up any equity or personal assets and allows for long term growth rather than short-term gain. Much has changed in recent years, which makes now a good time to review your current agreements and ensure your finance is handled by a respected, accredited funder. Appointing a funder to handle your invoice finance is a big decision -one that you need to get right. Contact us today to discuss your options.