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Why You Should Choose an Independent Factoring Company over a Bank

When choosing a factoring company, businesses must decide between independent factoring companies and traditional bank factors. In this blog, we will discuss four reasons why independent factoring companies are the better choice for businesses.
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Factoring is a financial service that allows businesses to sell their invoices to a third-party company, known as a factor. In exchange for the invoices, the factor provides immediate cash. This helps businesses improve their cash flow, reduce their debt, and invest in their growth.

The total turnover of factoring and commercial finance in the UK has increased from 1,245 billion euros in 2018 to 1,428 billion euros in 2021. This indicates a growing demand for this type of funding among UK businesses.

When enquiring for invoice finance, businesses need to decide whether they would like to opt for an independent factoring company or a traditional bank factor. Today, we’ll discuss four reasons why we think independent factoring companies are the better choice.

Specialised expertise:

Many independent factoring companies specialise in providing services such as Invoice Finance, Trade Finance, and Construction Finance. These companies concentrate on these areas, enabling them to offer tailored solutions that cater specifically to the requirements of businesses operating in these industries. Unlike banks, which have a wide range of services to handle, independent factoring companies possess a depth of expertise that goes beyond generic financial solutions.

Quick and flexible approval process:

One of the biggest advantages of choosing an independent factoring company is the speed of the approval process. Banks often involve lengthy application processes and credit checks, which can cause delays in accessing much-needed funds. On the other hand, independent factoring companies understand the urgency of cash flow and have streamlined approval processes, providing businesses with quicker access to the working capital they need.

Personalised customer service:

Having a strong relationship with your funding provider is important for the success of your business. Independent factoring companies pride themselves on offering personalised customer service. Clients often communicate directly with decision-makers, encouraging a more collaborative and responsive partnership. This level of personalised attention is frequently harder to achieve when working with large, bureaucratic banks.

According to a recent survey by the UK Finance Association, independent factoring companies have a 97% customer satisfaction rate, compared to 85% for bank factors. This shows that independent factors are more responsive and attentive to their client’s needs and feedback.

Tailored solutions for varied business needs:

Different businesses have different needs, and independent factoring companies are adept at tailoring their services accordingly. Whether your business needs Invoice Finance, Trade Finance, or Construction Finance, independent factoring companies can create flexible solutions that align with your specific industry and circumstances.


The decision between an independent factoring company and a bank factor boils down to the specific needs and goals of your business. While both options have their benefits, the growing trend toward independent factoring companies underscores the value of specialised expertise, flexibility, and personalised service. Choosing the right financial partner can be a pivotal step towards unlocking your business’s full potential.

If you are looking for a reliable and flexible funding partner for your business, contact us today and find out how our independent factoring services can help you achieve your goals.


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