IGF Invoice Finance Review
IGF Invoice Finance offers factoring from 1.0% service charge with advance rates up to 85%, for UK businesses with turnover from £50,000. As a smaller independent, they provide a more personal service with direct access to decision-makers and flexibility that larger providers often cannot match.
Key Facts
Pros and Cons
Strengths
- Personal service - speak to decision-makers directly
- Low minimum turnover (£50k)
- Flexible on difficult cases (CCJs, turnaround)
- Bad debt protection available
- No long-term contract lock-in on some facilities
Limitations
- Higher starting rate than larger providers
- Lower advance rate (85% vs 90-95%)
- Smaller provider with less brand recognition
- Limited export capability
When IGF Invoice Finance Fits
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Microbusinesses and start-ups with £50k-£500k turnover
IGF's £50,000 minimum turnover threshold is among the lowest in the UK invoice finance market, making them accessible to businesses that would be turned away by major banks and larger independents requiring £100k-£250k minimum.
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Owner-managed businesses in retail, wholesale or distribution
IGF's smaller size means you typically deal directly with senior decision-makers rather than call centres, allowing for faster responses and common-sense flexibility on debtor concentrations or payment terms that automated systems would decline.
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Businesses seeking quick 5-day setup with limited documentation burden
As a streamlined independent, IGF can approve and deploy facilities in around 5 working days, ideal for businesses needing immediate working capital without the lengthy credit committee processes typical of banking groups.
When to Look Elsewhere
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Turnover above £5m seeking big-ticket facilities with international invoice coverage
Better fit: Close Brothers. Larger balance sheets and global networks make banking groups better suited to complex, high-value requirements beyond IGF's sweet spot.
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Construction or professional services firms requiring selective invoice discounting with client anonymity
Better fit: Novuna Business Finance. Novuna offers confidential invoice discounting across wider sectors, whereas IGF's factoring model involves direct debtor contact which may not suit relationship-sensitive industries.
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Asset finance or property development alongside invoice needs
Better fit: Secure Trust Bank. Multi-product providers can cross-collateralise and bundle facilities, offering economies of scale that single-product specialists cannot match.
How IGF Invoice Finance Compares
| Provider | Type | Min facility | Fee from | Advance to | Speed |
|---|---|---|---|---|---|
| Bibby Financial Services | both | £100k | 0.75% | 90% | 7 days |
| Ultimate Finance | factoring | £50k | 1.25% | 85% | 5 days |
| Aldermore | both | £250k | 0.60% | 90% | 10 days |
| Kriya | discounting | £100k | 0.50% | 90% | 3 days |
vs Bibby Financial Services: Bibby requires double the minimum turnover but offers higher advance rates and lower service charges for established businesses, whereas IGF accepts younger, smaller firms.
vs Ultimate Finance: Ultimate matches IGF's micro-business focus and speed, but IGF's 1.0% service charge typically undercuts Ultimate's 1.25% starting rate for similar-sized facilities.
vs Aldermore: Aldermore's bank infrastructure delivers cheaper rates and higher advances but requires £250k minimum turnover and twice the setup time, pricing out IGF's core micro-business market.
vs Kriya: Kriya's tech-driven confidential discounting offers faster digital onboarding and lower costs, but requires £100k minimum and doesn't provide the full credit control service that IGF factoring includes.
Worked Example
A Leicester clothing wholesaler with £300k annual turnover
Setting Up With IGF Invoice Finance
- 1
Initial inquiry and indicative terms
Contact IGF directly (or via MarketInvoice comparison) with basic turnover figures and debtor list. You'll typically speak with a senior underwriter who can provide indicative service charge and advance rate within 24 hours, based on sector and debtor quality.
- 2
Credit assessment and facility design
Submit 12 months' management accounts, aged debtor report and bank statements. IGF conducts trade references on your main debtors and structures the facility, including any debtor concentration limits. Approval typically takes 2-3 working days for straightforward cases.
- 3
Documentation and go-live
Sign the factoring agreement (usually a 12-month initial term), complete debtor notification letters, and set up the IGF trust account for customer payments. First funds are typically available within 1-2 working days of completion, bringing total setup to around 5 working days.
FAQs
What's the real difference between IGF's 1.0% service charge and Bibby's 0.75% for a £300k turnover business?
On £25k monthly invoicing, IGF's 1.0% costs £250/month service charge versus Bibby's £187.50, a £62.50 difference. However, IGF accepts businesses from £50k turnover where Bibby requires £100k minimum. The practical trade-off is accessibility versus marginal cost savings, IGF typically works out cheaper overall for micro-businesses once you factor in the higher discount charges and stricter eligibility that lower headline rates often conceal.
Does IGF's factoring service mean my customers know I'm using finance?
Yes, factoring is disclosed. IGF notifies your debtors to pay them directly into a designated trust account, and appears on your invoices or statement inserts. This is standard for factoring and enables IGF to provide full credit control and collections as part of the service. If client confidentiality is essential, confidential invoice discounting from providers like Kriya or Novuna keeps the arrangement private, though usually at higher minimum turnover thresholds.
Can I use IGF alongside my existing bank overdraft or other lending?
Generally no, invoice finance requires a first charge over your sales ledger book debts, which conflicts with most bank overdrafts that take an all-assets debenture. You would typically refinance the overdraft with the initial IGF advance, then use the factoring facility as your primary working capital source. IGF can coordinate with your bank if you have term loans or asset finance secured on fixed assets rather than debtors.
What happens if one of my customers doesn't pay an invoice IGF has advanced against?
IGF operates with recourse, meaning you remain liable for bad debts. If a debtor doesn't pay within the agreed credit terms (typically 60-90 days), IGF will deduct the advance and charges from your available facility balance or request repayment. Unlike non-recourse facilities, you carry the credit risk, which is why IGF's service charges start at 1.0% rather than the 2-3% typical of bad debt protection schemes.
How quickly can I actually get the first cash advance once approved?
Once the factoring agreement is signed and debtor notifications sent, IGF can advance against submitted invoices within 24 hours. The headline 5-day setup includes approval, documentation and notification, first funds typically arrive on day 4-5. For urgent cases, if you have clean debtors and straightforward financials, IGF's senior team can sometimes compress this to 3 working days, though this is not guaranteed and depends on responsiveness from your customers acknowledging the notification.
Our Verdict
IGF is a good choice for smaller businesses that value personal service and flexibility over brand name and the lowest possible rates. They are particularly strong for businesses with challenging circumstances where larger providers may not be willing to help. The lower advance rate and higher starting fee are the trade-offs for that flexibility.