Understand your options, benchmark your facility and gain clarity on pricing, availability and alternative funding solutions.
Recent reports suggest that Aldermore is undertaking a strategic review of its invoice finance operations. Whilst the eventual outcome remains unclear and will not necessarily affect every customer, many businesses may feel that now is a sensible time to understand their options and review whether their current facility remains the best fit for their requirements.
For most businesses, invoice finance is not simply a source of funding. It is a critical component of day-to-day cashflow and working capital management. Any uncertainty around an existing facility can therefore raise understandable questions about future funding arrangements, lender appetite and access to cash.
Why Consider a Review?
Even if your facility remains unchanged, taking a fresh look at your arrangement can often provide valuable insights.
Businesses frequently discover:
- Their pricing is no longer competitive.
- Availability is being restricted by concentration limits or reserves.
- Their facility has not kept pace with business growth.
- Alternative funders may offer a more suitable structure.
- Existing terms and conditions are more restrictive than expected.
A review is not necessarily about changing lender. In many cases, it simply provides reassurance that the current arrangement continues to support the business effectively.
Questions Worth Asking
If you currently have an invoice finance facility, it may be worth considering:
Is the facility still competitively priced?
The invoice finance market is highly competitive. Service fees, discount margins and ancillary charges can vary significantly between providers.
Are you receiving the level of availability you expected?
Headline advance rates do not always tell the full story. Concentration limits, debtor exclusions, reserves and funding caps can all affect the amount of working capital available.
Does the facility still suit the business?
A facility that worked perfectly three years ago may not be the best solution today. Changes in customer profile, turnover, sector focus and growth plans can all influence lender appetite and facility suitability.
What alternatives are available?
The UK invoice finance market contains a wide range of providers, from high street banks to specialist independents. Different funders have different strengths, target sectors and risk appetites.
There Is No Need To Make A Rushed Decision
One of the biggest mistakes businesses make when funding circumstances change is leaving their options too late.
Understanding the market before a decision becomes urgent gives management teams greater flexibility and control. It also allows time to explore alternatives objectively rather than feeling pressured by deadlines or uncertainty.
Shadowfax’s Independent Facility Review
Shadowfax Funding Solutions has created a confidential Aldermore Invoice Finance Review designed to help businesses understand their position and benchmark their current arrangements.
The review can help assess:
- Current pricing and fees
- Cash availability and facility performance
- Facility structure and suitability
- Alternative lender appetite
- Potential funding improvements
- Practical transition considerations where appropriate
Importantly, the objective is not simply to move businesses elsewhere. If the current facility remains the right solution, we will say so.
Free Online Facility Benchmark
To help businesses start the process, we have created an online review tool where you can enter some basic facility information and request an independent assessment.
The tool allows you to provide:
- Annual turnover
- Facility limit
- Current availability
- Discount margin
- Service fee
From there, Shadowfax can provide a confidential review of your current arrangements and discuss any potential alternatives if required.
Final Thoughts
Whilst recent reports have understandably raised questions within the market, it is important to remember that every business situation is different. A facility review should not be viewed as a signal to change lender, but rather as an opportunity to ensure your working capital arrangements remain fit for purpose.
A little preparation today can often provide valuable reassurance tomorrow
Frequently Asked Questions
Is Aldermore withdrawing from invoice finance?
Should I move my invoice finance facility?
Not necessarily. A review does not automatically mean a facility should be moved. The objective is to understand whether the current arrangement remains competitive and suitable for the business.
How long does it take to change invoice finance provider?
Can I get more availability from another invoice finance provider?
Can I switch providers if I'm under contract?
What information is needed to review an invoice finance facility?
Typically this includes:
- Current facility offer letter
- Latest availability statement
- Aged debtor ledger
- Recent management accounts
- Details of any funding or service concerns
What alternatives are available to Aldermore Invoice Finance?
The UK market includes:
- High street banks
- Specialist invoice finance providers
- Independent invoice discounters
- Factoring companies
- Asset-based lenders
Different lenders have different strengths depending on sector, turnover and customer concentration.