DF Capital Invoice Finance
DF Capital is a UK-authorised bank offering invoice finance from around £250,000 alongside its core motor and asset finance products. Their banking licence means they fund from deposits, giving them a stable funding base. They are particularly well positioned for businesses that need both asset finance and invoice finance from a single provider.
DF Capital is a UK-authorised bank offering invoice finance from around £250,000 alongside motor and asset finance, with advance rates around 85% and service charges from 0.4%.
More detail + scope
Summary
DF Capital is a UK-authorised bank offering invoice finance from around £250,000 alongside its core motor and asset finance products. Advance rates run to about 85% with service charges from 0.4% and discount charges at base rate plus 3.5%. Its banking licence means it funds from deposits for a stable base, and it is well positioned for businesses wanting both asset and invoice finance from one provider.
This page covers
DF Capital invoice finance minimum facility, advance rate, pricing and combined asset-plus-invoice positioning
Not covered here
General invoice finance education (see /guides/), sector pages (see /industries/), the full provider directory (see /providers/)
Key Facts
When DF Capital Invoice Finance Fits
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Motor trade businesses (dealerships, bodyshops, parts wholesalers) with £1m+ turnover needing both invoice finance and asset finance
DF Capital's dual specialism in motor finance and invoice finance means they understand sector working capital pressures and can structure combined facilities that mainstream banks won't offer.
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Plant hire or construction firms with £750k+ turnover requiring £250k+ invoice finance alongside equipment funding
As a bank rather than a non-bank lender, DF Capital can price competitively for larger facilities and bundle asset purchase finance with invoice discounting under one credit committee.
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Established B2B businesses in transport, logistics or manufacturing with £500k+ monthly invoicing seeking a banking relationship rather than a specialist funder
Their deposit-funded model and banking licence provide funding stability that some invoice finance independents lack, particularly relevant for businesses wanting long-term partnerships.
When to Look Elsewhere
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Startups or businesses invoicing under £50k monthly
Better fit: Sonovate or Triver. DF Capital's £250k minimum facility size makes them unsuitable for smaller operations, while Sonovate and Triver regularly serve businesses from £20k monthly invoicing.
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Professional services firms (consultancies, agencies, IT contractors) needing fast digital onboarding
Better fit: Kriya. DF Capital's bank processes are slower than fintech platforms; Kriya can approve and fund professional services businesses within 48 hours via their digital application.
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Businesses requiring selective invoice finance (funding just 1-2 large invoices monthly)
Better fit: Optimum Finance. DF Capital operates whole turnover facilities; Optimum Finance specialises in spot factoring where you choose which invoices to fund on a transaction-by-transaction basis.
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Exporters needing multi-currency invoice finance with letters of credit support
Better fit: HSBC Invoice Finance or Lloyds Bank Invoice Finance. DF Capital focuses on domestic UK invoice finance, while HSBC and Lloyds have dedicated trade finance teams handling export documentation and FX hedging.
How DF Capital Invoice Finance Compares
| Provider | Type | Min facility | Fee from | Advance to | Speed |
|---|---|---|---|---|---|
| Close Brothers | both | £100k | 0.3% | 90% | 7-10 days |
| Aldermore | both | £250k | 0.35% | 85% | 10-14 days |
| Secure Trust Bank | both | £250k | 0.4% | 85% | 10-14 days |
| Novuna Business Finance | both | £100k | 0.3% | 90% | 5-10 days |
vs Close Brothers: Close Brothers has a lower £100k entry point and stronger presence in recruitment and staffing sectors, whereas DF Capital requires £250k minimum but offers integrated motor finance for automotive businesses.
vs Aldermore: Aldermore is similarly bank-funded but focuses on property, healthcare and professional services, while DF Capital's motor and asset finance heritage makes them more suited to capital-intensive sectors.
vs Secure Trust Bank: Secure Trust Bank offers similar bank stability and minimum facility sizes but specialises in construction and recruitment, whereas DF Capital is stronger for motor trade and businesses needing parallel equipment finance.
vs Novuna Business Finance: Novuna (formerly Hitachi Capital) has a lower entry threshold and faster digital processes, but DF Capital's banking licence and deposit funding can offer more competitive pricing for larger £500k+ facilities.
Worked Example
A Midlands motor parts wholesaler with £2.4m turnover supplying independent garages on 60-day terms
Setting Up With DF Capital Invoice Finance
- 1
Initial credit assessment
DF Capital reviews your last two years of accounts, management accounts, aged debtors ledger and directors' credit profiles. As a bank, their underwriting includes a full bank credit committee review, so expect 2-3 weeks for initial credit approval rather than the 48-hour decisions some fintech lenders offer.
- 2
Facility structuring and legal documentation
They'll propose a facility limit based on your debtor book quality, typically 85% advance on approved invoices. Legal documentation includes a debenture over company assets and personal guarantees from directors with 25%+ shareholding. Budget £1,500-£2,500 for their legal costs, which are usually added to the facility.
- 3
Sales ledger integration
DF Capital conducts debtor verification calls to confirm your invoices are genuine and acceptable. If taking invoice discounting (confidential), you continue collecting payments into your own account with daily reporting. For factoring, they take over credit control and collections, with your customers redirected to their payment processing team.
- 4
Funding and ongoing operation
Once live, submit invoices via their online portal or email. Initial advances typically arrive same day if submitted before noon. Reserve payments (the unfunded 15%) are released when your customer pays, minus fees. DF Capital monitors your debtor days and concentration monthly, so maintaining good debtor quality is essential to preserve your facility limit.
FAQs
Can DF Capital combine invoice finance with equipment finance for the same business?
Yes, this is one of DF Capital's core strengths. Businesses can access invoice finance for working capital alongside hire purchase or leasing for vehicles, plant or machinery under a single banking relationship. The combined facility approach often results in better overall pricing than sourcing separately, and you deal with one credit team for both products. This is particularly valuable for motor trade, construction and transport businesses where equipment and working capital needs are interdependent.
What happens if my turnover drops and I no longer need a £250k facility?
DF Capital facilities are typically contracted with minimum funding periods (often 12 months initially, then rolling). If your invoicing falls significantly below the level that justifies a £250k limit, they may reduce your facility or suggest refinancing to a provider with lower minimums. Unlike some non-bank funders, banks generally prefer larger, stable relationships, so sustained drops in turnover can trigger facility reviews. Always discuss changing circumstances early rather than breaching covenants.
Does DF Capital offer bad debt protection or non-recourse factoring?
DF Capital primarily offers recourse facilities, meaning you remain liable if a customer doesn't pay. Some banks provide non-recourse (bad debt protected) factoring as an add-on, but this significantly increases costs, typically adding 0.3-0.6% to service charges. If bad debt protection is essential for your sector (common in construction or recruitment), providers like Bibby Financial Services or Close Brothers have more established non-recourse products. Always check whether credit insurance is more cost-effective than non-recourse factoring.
How does DF Capital's bank status affect me compared to a non-bank invoice finance provider?
As an FCA-authorised bank, DF Capital funds facilities from customer deposits rather than wholesale credit lines, which can mean more stable pricing and capacity during credit crunches. However, bank regulation means stricter underwriting, slower decisions, and more formal covenant monitoring than fintech lenders. You'll face annual reviews, regulatory reporting requirements, and less flexibility on covenant breaches. The trade-off is typically better rates for larger, established businesses, but slower service and less tolerance for rapid business changes than non-bank specialists like Kriya or Sonovate offer.
Our Verdict
DF Capital is an interesting option if you need invoice finance combined with motor or asset finance. The bank status provides funding stability, and the £250k minimum puts them in reach of growing SMEs. However, if invoice finance is your only requirement, a dedicated specialist may offer more flexibility.
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