ABC Finance Invoice Finance
ABC Finance is an independent invoice finance provider offering facilities from around £100,000 for general UK SMEs. They operate without bank ties, allowing them to offer flexible terms and straightforward decision-making for businesses that need working capital against their outstanding invoices.
ABC Finance is an independent UK invoice finance provider offering facilities from around £100,000 to general SMEs, with advance rates around 85% and service charges from 0.6%.
More detail + scope
Summary
ABC Finance is a bank-independent invoice finance provider funding general UK SMEs from around £100,000. Advance rates run to about 85% with service charges from 0.6% and discount charges at base rate plus 3.5%. Its independence allows flexible terms and straightforward decisions for businesses needing working capital against outstanding invoices.
This page covers
ABC Finance invoice finance minimum facility, advance rate, service charge, discount charge and target market
Not covered here
General invoice finance education (see /guides/), sector pages (see /industries/), the full provider directory (see /providers/)
Key Facts
When ABC Finance Invoice Finance Fits
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Established SME in manufacturing, distribution or professional services with £500k-£5m turnover
ABC Finance's £100k minimum suits businesses with consistent monthly invoicing of £20k+, while their independent structure means faster credit decisions without referring to bank credit committees.
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Growing recruitment or staffing agencies expanding beyond £1m turnover
Independent providers like ABC Finance often specialise in sectors with longer payment terms (45-60 days), making them well-suited to agencies invoicing corporate clients or public sector contracts.
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Businesses previously declined by high street banks or needing confidential facilities
ABC Finance's non-bank ownership removes conflicts with existing bank relationships, and they can structure confidential invoice discounting where customers remain unaware of the facility.
When to Look Elsewhere
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Start-ups or businesses invoicing under £15k monthly
Better fit: Sonovate. Sonovate offers selective funding from lower monthly volumes, better suited to early-stage businesses.
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High-volume B2C retailers or e-commerce with sub-£500 invoice values
Better fit: Kriya. Kriya's technology platform handles high transaction volumes and lower invoice values more efficiently than traditional providers.
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Businesses needing facilities above £3m with multi-currency requirements
Better fit: Close Brothers. Close Brothers operates at larger scale with dedicated international trade finance desks for cross-border invoicing.
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Construction subcontractors invoicing main contractors
Better fit: Pulse Cashflow. Pulse Cashflow specialises in construction sector nuances including retentions, application certificates and CIS deductions.
How ABC Finance Invoice Finance Compares
| Provider | Type | Min facility | Fee from | Advance to | Speed |
|---|---|---|---|---|---|
| Ultimate Finance | both | £50k | 0.5% | 90% | 5-7 days |
| Bibby Financial Services | both | £100k | 0.75% | 85% | 7-10 days |
| IGF Invoice Finance | both | £250k | 0.4% | 90% | 10-14 days |
| Time Finance | both | £25k | 0.65% | 85% | 3-5 days |
vs Ultimate Finance: Ultimate Finance accepts smaller facilities from £50k and often advances up to 90% versus ABC Finance's typical 85%, but charges slightly higher service fees.
vs Bibby Financial Services: Bibby operates globally with 14 countries, making them better for exporters, whereas ABC Finance focuses solely on UK domestic invoicing with faster local decisions.
vs IGF Invoice Finance: IGF targets larger businesses with £250k minimum and lower service charges, while ABC Finance accepts mid-market SMEs from £100k with more flexible credit appetites.
vs Time Finance: Time Finance approves smaller facilities and delivers faster decisions through automated credit scoring, whereas ABC Finance offers relationship-based underwriting for complex cases.
Worked Example
A Midlands engineering components manufacturer with £1.2m turnover supplying automotive tier-one suppliers
Setting Up With ABC Finance Invoice Finance
- 1
Initial enquiry and assessment
Submit recent management accounts, aged debtor reports and details of your top 10 customers. ABC Finance reviews your debtor quality and sector experience, typically responding within 48 hours for standard SME cases.
- 2
Facility proposal and credit checks
ABC Finance provides a written proposal with advance rates, fees and facility limit. They conduct credit checks on your major debtors and review trading history, VAT returns and any existing borrowing. This stage typically takes 5-7 working days.
- 3
Legal documentation and drawdown
Solicitors prepare a debenture (fixed and floating charge) over your book debts. Once signed, ABC Finance sets up your account, verifies opening invoices with a sample of customers, and releases the first advance, usually within 2-3 days of documentation completion.
FAQs
Does ABC Finance notify my customers they're dealing with an invoice finance company?
ABC Finance offers both disclosed factoring (where customers pay them directly) and confidential invoice discounting (where customers continue paying you). Confidential facilities typically require stronger credit profiles and turnover above £750k. For disclosed facilities, ABC Finance contacts customers professionally to confirm invoice validity and arrange payment to their trust account.
What happens if one of my customers doesn't pay an invoice?
Most ABC Finance facilities operate on a recourse basis, meaning you remain responsible for bad debts. If an invoice remains unpaid beyond agreed terms (typically 90-120 days), ABC Finance will deduct the advanced amount from your account. They'll support collection efforts, but ultimate credit risk stays with you unless you arrange separate credit insurance or a non-recourse facility at higher cost.
Can I choose which invoices to finance or must I submit all sales?
ABC Finance typically requires whole turnover arrangements where all eligible invoices are submitted, ensuring they control the full debtor book. Selective invoice finance (choosing specific invoices) usually isn't available at the £100k facility level, though some providers offer spot factoring for businesses needing occasional rather than ongoing funding. Whole turnover protects both parties by preventing cherry-picking of best debts.
How does ABC Finance's pricing compare to a standard business overdraft?
Invoice finance involves two charges: a service fee (typically 0.5-0.8% of monthly turnover) and a discount charge (base rate plus 3-4% margin on drawn funds). For a business drawing £80k against £100k monthly invoicing, total monthly cost might be £900-£1,200. A £80k overdraft at 8% costs around £533 monthly but requires property security and personal guarantees that invoice finance may not need, plus overdrafts can be recalled on demand.
Our Verdict
ABC Finance is a solid independent option for SMEs seeking invoice finance without the overhead and cross-selling that comes with bank providers. The £100k minimum makes them accessible to growing businesses, and their independence means decisions are made in-house rather than by distant credit committees.
Director, Market Invoice
Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.
Last reviewed: 8 April 2026