Aldermore Bank: products, terms and eligibility

Aldermore Bank is a UK provider of invoice finance. The legal entity named on its site is Aldermore Bank PLC, company number 00947662. It is based in Reading. It is part of FirstRand Group.

Aldermore Bank PLC is a UK bank authorised by the Prudential Regulation Authority and regulated by the FCA and PRA (register number 204503). Aldermore Group is part of FirstRand Group, which it describes as the largest financial services group in Africa by market capitalisation. Its registered office is in Reading, and it says it operates exclusively online, by phone and through networks.

Everything on this page comes from what Aldermore Bank publishes itself. We show the date we last checked it, and we do not rate or rank lenders.

Aldermore Bank publishes 3 products for UK businesses. The table above gives the amounts and terms as it states them.

• Invoice discounting: Up to 90% of invoice value advanced; the remainder is released, less charges, once your customer pays; you keep control of collections and can have a confidential facility.
• Factoring: Up to 90% of invoice value advanced; Aldermore provides credit control and debt collection.
• Asset based lending: Funding secured against assets such as machinery and property on top of an invoice finance facility.

Invoice discounting

The business borrows against its sales invoices and stays responsible for collecting payment from customers, so the facility can remain confidential. The lender advances up to 90% of the value of outstanding invoices and returns the remainder when the customer pays, less service charges. It says this is not a loan but a facility that grows with turnover.

Factoring

As with discounting it advances up to 90% of the value of outstanding invoices, but Aldermore also provides a full credit control service and collects payments from customers, so customers are aware of the arrangement. The balance is returned once the customer pays. Optional Bad Debt Protection covers losses where a customer cannot or will not pay.

Asset based lending

Funding against plant, machinery, property and debtor values to release working capital, aimed at larger businesses. Security may be required, and any property or asset used as security may be at risk if the debt is not repaid.

Aldermore Bank says its finance is used for:

• Releasing cash tied up in unpaid invoices
• Working capital
• Funding business growth
• Switching from another invoice finance provider

Sectors and business types it says it funds:

• Manufacturing
• Engineering
• Distribution
• Business services
• Transport and logistics
• Wholesale
• Recruitment
• Construction contracting

Aldermore Bank publishes these criteria. Meeting them does not mean an application will be accepted: every lender makes its own decision.

• Businesses that provide a product or service on credit and raise invoices.
• Generally a minimum turnover of £750,000.
• Invoice discounting suits businesses with an in-house credit control department.

Aldermore Bank describes its process like this:

1. Aldermore assesses the business’s operations and plans.
2. The facility type (discounting, factoring or asset based lending) is agreed.
3. The business uploads invoices and checks funding availability through the online portal.

Information it says it asks for:

• Information on business operations and plans; requirements vary by business

Every application is subject to status and the lender’s own criteria at the time.

Invoice finance releases cash tied up in unpaid invoices: the provider advances part of an invoice’s value when you raise it and pays the balance, less its charges, when your customer pays. With factoring the provider collects from your customers; with invoice discounting you keep collecting yourself.

Providers assess your customers as much as your own business: who owes you, on what terms and how concentrated the debt is. It suits firms that sell on credit to other businesses, such as recruitment agencies and manufacturers.

Points Aldermore Bank publishes that are worth knowing:

• Takes security over your debtors, with any other requirements discussed per business.
• Invoice finance lending to limited companies is not regulated by the FCA or PRA.
• Existing facilities can be transferred from another provider; early-exit fees may apply with the current provider.
• Accredited to offer the Growth Guarantee Scheme.

Security and guarantees

Security may be required, subject to status. Any property or asset used as security may be at risk if the debt secured on it is not repaid. Switching from another provider may involve early termination fees from that provider.

Aldermore Bank’s site states: “Aldermore Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register number: 204503).”

Protections differ by borrower type and loan size. Most lending to limited companies is not regulated consumer credit, so read the agreement and ask the lender what applies to you.

Other providers of invoice finance with profiles here include Bibby Financial Services, Cynergy Business Finance (Cynergy Bank) and eCapital (UK). Each profile uses that lender’s own published terms.

The full list, grouped by product type, is in our directory of UK business lenders.

Capzy is a credit broker, not a lender, and gets paid by the lender. One application lets your business compare options across lenders, so you can weigh this kind of facility against the alternatives. You can check your funding options with a soft search that does not affect your credit score. A full application to a lender may involve a hard search, and any offer is subject to status and lender criteria.