Compare

Compare your funding options, honestly.

Four straight comparisons. No upsell, no jargon. Pick the section that matches the decision you're trying to make.

Section 1

Factoring vs invoice discounting

Both fund you against unpaid invoices. The split comes down to who chases payment and whether your customers see the lender.

Feature

Invoice factoring

Invoice discounting

Who collects payment

The lender

You

Customer awareness

Customers know

Confidential

Typical min turnover

£100k

£500k+

Service fee

0.5 to 3%

0.2 to 1%

Discount fee

BoE base + 2 to 5%

BoE base + 2 to 4%

Best when

Credit control is lean

Credit control is strong

Best for factoring

Smaller SMEs without dedicated credit control, or sectors where outsourced collections actually help (recruitment, haulage).

Best for discounting

Established businesses with their own credit team, £500k+ turnover, and customer relationships that benefit from confidentiality.

Section 2

Invoice finance vs revolving credit

Invoice finance scales with your sales. Revolving credit gives you flexible headroom regardless of invoicing. Most businesses end up wanting both.

Feature

Invoice finance

Revolving credit

What it funds against

Unpaid invoices

Agreed facility limit

How fast it scales

With sales

Fixed limit

Cost on undrawn balance

None

0.5 to 1.5%

Typical headline rate

BoE + 2 to 5%

BoE + 3 to 6%

Setup time

2 to 4 weeks

4 to 8 weeks

Best when

Sales are growing fast

Cash needs are unpredictable

Best for invoice finance

B2B businesses with predictable invoicing where funding needs to grow lockstep with sales.

Best for revolving credit

Seasonal businesses, lumpy working-capital needs, or established trading where committed headroom matters more than invoice-linked drawdown.

Section 3

Invoice finance vs a bank term loan.

The honest cost comparison most banks won't show you. Move the slider to your turnover.

Turnover£2,000,000

£250k£20m

Invoice finance

Flexible

Drawable headroom£300,000

Annual cost£21,000

3-year total cost£63,000

Time to funds2 to 4 weeks

Scales with salesYes

Early repaymentFree

Bank term loan

Fixed, inflexible

Facility size£150,000

Annual cost£16,500

3-year total cost£49,500

Time to funds6 to 12 weeks

Scales with salesNo

Early repaymentPenalty

Indicative only. Actual pricing depends on sector, debtor quality and trading history.

Section 4

Selective vs whole-ledger

Selective is pay-as-you-go: fund the invoices you choose, when you choose. Whole-ledger is a committed facility, cheaper per pound, but you commit the entire book.

Feature

Selective

Whole-ledger

Coverage

Pick which invoices

Every invoice

Pricing

Per-invoice fee

Service + discount fee

Min commitment

None

12-month facility

Funding speed per invoice

24 to 48 hours

Same day

Total cost at scale

Higher per £

Lower per £

Best when

Occasional cashflow gaps

Sustained funding need

Best for selective

Businesses with occasional cashflow gaps, lumpy single invoices, or those testing IF before committing to a full facility.

Best for whole-ledger

Businesses with a sustained funding need where the lower per-pound cost outweighs the loss of flexibility.

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