Aldermore Invoice Finance

  • Aldermore is a ‘challenger bank’ that offers a range of finance products to UK businesses. Find out more about their options and whether they might suit your business.
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How invoice financing works

1
The order
Create an invoice for your customer, showing how much is owed to your business and when payment is due.
2
Cash advance
Send a copy of the invoice to a lender to release up to 100% of its value as a cash sum.
3
Repayment
When it is due, the lender receives the payment from the customer. The lender then sends your business any remaining amount on the invoice that wasn't originally financed, after deducting the prearranged fees.

This comparison service is provided by Touch Financial. Touch Financial is a finance broker, not a lender. Not all products offered by Touch Financial are regulated by the Financial Conduct Authority. They compare invoice financing services from a range of different lenders, aiming to find the one that best suits the needs of their business customers. Touch Financial consultants look at the profile of each business, including cash flow, accountancy needs, and any other specific requirements, to match them with the most appropriate invoice finance provider and product. Touch Financial is authorised and regulated by the Financial Conduct Authority (FRN:727220).

Information written by Dan Barraclough Last updated on 28 June 2022.

Aldermore is one of the UK’s ‘challenger banks’, founded in 2009. It offers a variety of finance products to UK businesses, including invoice finance, asset finance, commercial mortgages and property development finance.

On this page, we’ll unpack Aldermore’s key features to help you decide whether it’s the right bank for your business.

What is Aldermore Invoice Finance?

Invoice finance is one of Aldermore’s finance products, allowing businesses to access working capital from unpaid invoices – typically within 24 hours – rather than waiting for customers to pay.

» COMPARE: Invoice finance deals

What services does Aldermore offer?

Aldermore offers a range of finance products to UK businesses, all designed to help improve your cash flow, making it easier to grow your business.

Invoice discounting

Invoice discounting is part of Aldermore’s invoice finance product. It allows your businesses to access 90% of unpaid invoices within 24 hours of submitting your invoice to Aldermore – rather than waiting for customers to pay. Aldermore sends you the remaining 10% once the customer has paid, minus its service fees.

With invoice discounting, your business retains control of the invoice collections, keeping the service confidential from your customers.

Invoice factoring

Invoice factoring is similar to invoice discounting – Aldermore will release 90% of your invoice within 24 hours, and the remaining 10% minus fees once the customer pays.

The main difference between discounting and factoring is that, with factoring, Aldermore chases the payments for you, making it suitable if you want to focus on other areas of your business.

Aldermore also provides its own credit control team and Relationship Manager for its invoice factoring product – the fees will be higher for this additional service.

Asset finance

Aldermore’s asset finance allows you to buy expensive equipment without the upfront cost. Aldermore buys the asset for you and creates a tailored repayment plan through a hire purchase agreement, lease agreement, or refinance agreement.

Each agreement offers varying levels of asset ownership, so it’s best to talk directly with Aldermore about which one would suit you best.

» COMPARE: Asset finance deals

Which industries does Aldermore Invoice Finance cover?

Aldermore invoice finance focuses on the construction industry. In fact, Aldermore is a member of the National Federation of Builders Associates, offering insight and guidance on major trends in the UK construction industry.

However, while there is a focus on construction, Aldermore also offers invoice financing to businesses in other industries with an annual turnover of at least £250,000.

Given Aldermore’s niche focus, it may be more beneficial for construction businesses to use Aldermore’s invoice finance product – even though any type of business can technically use it.

Am I eligible for Aldermore Invoice Finance?

If your business provides a product or service and raises invoices, and has a minimum turnover of £250,000, then you could be eligible for Aldermore invoice finance.

You may want to contact Aldermore directly to see if you’re eligible.

How can I get funding from Aldermore Invoice Finance?

As long as you’re eligible, you can get funding from Aldermore. You’ll need to visit the Aldermore website and use its product finder to see which type of funding would suit you best.

Don’t forget you can use our partner, Touch Financial, to compare finance deals and find the best option for your business quickly and easily. Simply use the quote tool on this page.

What do their customers say?

Aldermore invoice finance reviews are generally positive.

On Trustpilot, Aldermore Bank has a 4.7/5 rating from over 2,200 reviews.

If customer service is important to your business, then Aldermore could be a good choice – judging by the Trustpilot reviews.

There are no online reviews for its mobile app, App+.

This information is correct as of May 15th 2022.

Conclusion

Aldermore may be an option if your business needs a variety of finance options, including invoice finance, asset finance, commercial mortgages, and property development finance. With its invoice finance product, you can get 90% of your invoice within 24 hours.

Aldermore has a niche focus on the construction industry, which is something to consider. Also, if your annual turnover is less than £250,000, you’re unlikely to be eligible.

Aldermore Invoice Finance FAQs

Which bank owns Aldermore?

Aldermore is part of the FirstRand Group.

Is my money safe with Aldermore Bank?

Your Aldermore product can be backed by the Bad Debt Protection if you add the product, ensuring your business gets paid from all its owed invoices.

What’s more, Aldermore is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority.

Is Aldermore linked to another bank?

Aldermore is part of FirstRand Group.

Is Aldermore a challenger bank?

Yes. Aldermore was one of the first challenger banks in the UK when it started in 2009.

About the author:

Dan is an experienced writer of B2B and B2C content, having written for start-ups, small businesses and household name brands. His specialist topics include finance, insurance and business energy. Read more

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