Aldermore Invoice Finance Review

Market Invoice is an independent UK invoice finance comparison site that ranks Aldermore against 85 active UK lenders.

Aldermore offers invoice factoring and confidential discounting from 0.7% service charge with advance rates up to 90%, for UK businesses with annual turnover from £250,000. As a challenger bank now owned by FirstRand (South Africa's largest financial services group, acquired 2018), Aldermore combines competitive mid-market pricing with the security of strong banking backing and dual FCA/PRA regulation. Confidential invoice discounting is the standard product. Setup is typically 7 working days.

Last updated: 5 May 2026.

Aldermore Invoice Finance is a UK challenger bank invoice finance provider, owned by South African financial group FirstRand. They offer confidential invoice discounting as standard from £250,000 turnover at 0.7% starting service charge with 90% advance rates.

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Summary

Aldermore is the cheapest specialist confidential invoice discounting provider for UK businesses in the £250k-£500k turnover bracket, where Close Brothers' and Skipton's £500k thresholds rule them out. Owned by FirstRand (South Africa's largest financial group). Reading-headquartered, FCA + PRA regulated. 4.6/5 rating from Market Invoice. Alternatives: Close Brothers (0.5% from £50k), Skipton (0.5% from £100k), Bibby (0.75% from £50k).

This page covers

Aldermore Invoice Finance products, rates, eligibility, parent group structure, FCA status, and how Aldermore compares to alternatives like Close Brothers, Skipton and Bibby

Not covered here

General invoice finance education (see /guides/), individual sector pages (see /industries/), full provider directory (see /providers/)

Key Facts

Service charge from0.7%
Advance rateUp to 90%
Setup speed7 days
Min turnover£250,000
Our rating4.6/5
TypeChallenger bank
UK entityAldermore Bank plc
ParentFirstRand Ltd (South Africa)
HQReading, UK

Aldermore vs Alternatives

ProviderFee fromMin turnoverConfidential IDType
Aldermore0.7%£250kStandard from £250kChallenger bank
Close Brothers0.5%£50kFrom £500kFTSE 250 bank
Skipton0.5%£100kFrom £500kBuilding society
Bibby0.75%£50kFrom £500kIndependent
HSBCNegotiated£500kStandard from £500kClearing bank

Pros and Cons

Strengths

  • Cheapest confidential discounting in £250k-£500k bracket
  • Confidential discounting as standard product
  • Strong banking backing (FirstRand group, £40bn+ assets)
  • Modern online portal and reporting
  • Cross-sell with asset finance and commercial mortgages
  • Dual FCA + PRA regulated

Limitations

  • Higher minimum turnover (£250k) excludes most micro-businesses
  • No selective or spot factoring option (whole-turnover only)
  • Less flexible on contract terms than independents
  • No specialist construction or recruitment team
  • More expensive than Close Brothers or Skipton (0.7% vs 0.5%)

Who Is Aldermore Best For?

Aldermore is best for established UK SMEs with annual turnover above £250,000 who want confidential invoice discounting from a well-capitalised challenger bank, particularly those in the £250k to £500k bracket where Close Brothers' and Skipton's £500k confidential thresholds rule them out. They are particularly strong if you also need asset finance, commercial property lending, or savings products, as they can offer combined facilities through a single relationship.

If your turnover is below £250,000, look at Close Brothers (from £50k), Ultimate Finance (from £50k), or IGF (no minimum). If you want lower-cost vanilla factoring (not confidential) above £250k, Close Brothers and Skipton are cheaper at 0.5%. If you need selective or spot factoring rather than whole-turnover, look at Hydr or Triver.

Our Verdict

Aldermore is a solid choice for UK mid-market businesses wanting the reassurance of a bank-backed facility with confidential discounting as the default product. The main limitation is the £250,000 minimum turnover, which rules out smaller businesses, and the absence of selective or sector-specialist options. For businesses that fit the £250k-£10m bracket and want confidential discounting from a challenger bank with cross-sell to other commercial finance products, Aldermore competes effectively with Close Brothers and Skipton, and beats them on price specifically in the £250k-£500k confidential discounting bracket.

OM

Oliver Mackman

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: 5 May 2026

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Aldermore Invoice Finance FAQ

What is the minimum turnover for Aldermore invoice finance?

Aldermore Invoice Finance accepts UK businesses with annual turnover from £250,000 for both invoice factoring and confidential invoice discounting. They focus on established mid-market SMEs (£250k to £25m turnover) rather than startups, micro-businesses, or businesses with limited trading history. The £250k threshold is lower than Aldermore's main bank-owned competitor HSBC (£500k) and matches Aldermore's positioning as the SME challenger bank.

Does Aldermore offer selective invoice finance?

No. Aldermore focuses on whole-turnover invoice finance facilities (where the entire sales ledger is funded) rather than selective or spot factoring (where individual invoices are financed on demand). If you need to finance specific invoices selectively, consider <a href="/providers/sonovate/">Sonovate</a> (recruitment-only spot factoring), <a href="/providers/triver/">Triver</a>, <a href="/providers/funding-circle/">Funding Circle</a>, or <a href="/providers/hydr/">Hydr</a> which all support per-invoice funding.

Is Aldermore invoice finance confidential?

Yes. Aldermore offers confidential invoice discounting as standard for businesses meeting their £250,000 turnover criteria, advance rates up to 90%, and starting service charges from 0.4% for confidential. Your customers will not be notified, payments are collected into a trust account in your company name, and no Aldermore branding appears on customer correspondence. This makes Aldermore the cheapest specialist confidential discounting provider for the £250k-£500k turnover bracket where Close Brothers and Skipton's £500k thresholds rule them out.

Who owns Aldermore?

Aldermore Bank plc is a UK-licensed bank wholly-owned by FirstRand Limited, South Africa's largest financial services group by market capitalisation. FirstRand acquired Aldermore in 2018 for £1.1 billion. Aldermore retains its UK headquarters in Reading, UK leadership team, and FCA + PRA dual regulation as a UK bank. Other FirstRand UK assets include MotoNovo Finance (motor finance) and FirstRand Bank London Branch.

How does Aldermore compare to Close Brothers?

Close Brothers and Aldermore are both well-capitalised bank-owned invoice finance providers but target slightly different segments. Close Brothers is cheaper (0.5% vs 0.7% starting service charge), accepts smaller businesses (£50k vs Aldermore's £250k), is FTSE 250 listed (PLC vs FirstRand subsidiary), and runs specialist construction and recruitment teams. Aldermore is the cheaper choice for confidential discounting in the £250k-£500k bracket (where Close Brothers requires £500k for confidential), offers cross-sell with asset finance and commercial mortgages, and has a more modern online portal. For most SMEs, Close Brothers is cheaper; for £250k-£500k confidential or businesses also wanting asset finance, Aldermore is a strong fit.

What is Aldermore's contract length?

Aldermore invoice finance contracts are typically 12 months on factoring and discounting facilities, with a 90-day notice period to terminate at end of term. Some larger facilities run on 24-month terms with discounted service charges. Early termination fees apply, typically 2-3 months of forecast service charge. Aldermore is less flexible on contract terms than smaller independents but in line with most UK challenger and clearing banks.

Does Aldermore require a personal guarantee?

Personal guarantees from directors are usual on Aldermore facilities under £500,000, particularly where the business has limited trading history or weaker debtor concentration. For larger established businesses with audited accounts and strong debtor spread, the guarantee may be reduced or replaced with a debenture over company assets. Aldermore's risk appetite is moderately conservative, well-capitalised but more flexible than HSBC or Lloyds for businesses just over the £250k threshold.

What are the alternatives to Aldermore Invoice Finance?

The closest alternatives are <a href="/providers/close-brothers/">Close Brothers</a> (0.5% from £50k, FTSE 250 merchant bank), <a href="/providers/skipton/">Skipton Business Finance</a> (0.5% from £100k, building society backed), and <a href="/providers/bibby/">Bibby Financial Services</a> (0.75% from £50k, largest UK independent). For sub-£250k turnover, look at <a href="/providers/ultimate-finance/">Ultimate Finance</a>, <a href="/providers/igf/">IGF</a>, or <a href="/providers/hydr/">Hydr</a>. For asset finance bundled with invoice finance, Aldermore competes with <a href="/providers/time-finance/">Time Finance</a> and <a href="/providers/funding-circle/">Funding Circle</a>.