Tandem Invoice Finance Review
Tandem Invoice Finance is an independent provider offering factoring and invoice discounting with facilities from £50,000. They work with UK SMEs across a range of sectors, providing a personal and responsive service with direct access to decision-makers. Their independent structure allows them to move quickly and tailor facilities to individual needs.
Tandem Invoice Finance is an independent UK provider offering factoring and discounting from £50,000, with advance rates around 85% and service charges from 0.75%.
More detail + scope
Summary
Tandem Invoice Finance is a bank-independent provider offering factoring and invoice discounting from £50,000. Advance rates run to about 85% with service charges from 0.75% and discount charges at base rate plus 3.5%. It works with UK SMEs across sectors, offering a personal, responsive service and direct access to decision-makers, with the speed and flexibility of an independent structure.
This page covers
Tandem Invoice Finance products, minimum facility, advance rate and pricing
Not covered here
General invoice finance education (see /guides/), sector pages (see /industries/), the full provider directory (see /providers/)
Key Facts
When Tandem Invoice Finance Fits
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Manufacturing or distribution businesses with £250k-£3m turnover needing hands-on credit control support
Tandem's factoring service includes full ledger management and debtor chasing, which suits smaller manufacturers or distributors who lack dedicated credit control staff and want to outsource collections entirely.
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Service businesses (recruitment, staffing, professional services) with £500k+ turnover seeking confidential invoice finance
Tandem offers invoice discounting where clients retain control of their sales ledger without notifying customers, ideal for service sector firms concerned about client perception or existing bank relationships.
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Growing SMEs unable to meet high street bank minimums or needing faster approval than tier-1 lenders
With a £50k minimum facility and independent decision-making structure, Tandem can approve facilities in days rather than weeks and accommodate businesses too small for Lloyds or HSBC Invoice Finance.
When to Look Elsewhere
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Businesses with monthly invoicing below £15k or very early-stage startups
Better fit: Sonovate or Pulse Cashflow. These providers specialise in lower-volume facilities and can work with newer businesses where Tandem's £50k minimum may be too high.
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Large corporates with £5m+ turnover needing multi-currency facilities or international invoice finance
Better fit: HSBC Invoice Finance or Barclays Invoice Finance. High street banks offer integrated treasury services, foreign currency funding and global network support that independent providers cannot match.
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Construction or contractor businesses with long payment terms (90+ days) and project-based billing
Better fit: Optimum Finance or Secure Trust Bank. These specialists have built risk models for construction sector cashflow patterns and can advance against stage payments or retentions more readily.
How Tandem Invoice Finance Compares
| Provider | Type | Min facility | Fee from | Advance to | Speed |
|---|---|---|---|---|---|
| Ultimate Finance | both | £50k | 0.5% | 90% | 3-5 days |
| IGF Invoice Finance | both | £50k | 0.75% | 85% | 5-7 days |
| Skipton Business Finance | both | £100k | 0.6% | 90% | 7-10 days |
| Close Brothers Invoice Finance | both | £100k | 0.5% | 90% | 5-7 days |
vs Ultimate Finance: Ultimate offers selective invoice finance where clients can choose which invoices to fund, giving more flexibility than Tandem's whole-ledger approach.
vs IGF Invoice Finance: IGF is part of a larger group with more automated online platforms, whereas Tandem emphasises direct relationship management and phone-based service.
vs Skipton Business Finance: Skipton has a higher minimum facility and more structured credit processes as part of a building society group, making Tandem more accessible for smaller SMEs.
vs Close Brothers Invoice Finance: Close Brothers is a FTSE 250 banking group with more comprehensive bad debt protection options, while Tandem offers faster decisions and more personal service for mid-market clients.
Worked Example
A Nottingham-based packaging distributor with £600k annual turnover
Setting Up With Tandem Invoice Finance
- 1
Initial discussion and quote
Contact Tandem directly by phone or through their website. A director will review your sales ledger, debtor list and recent accounts. Because Tandem is independent, you'll speak to a decision-maker from day one, not a sales team. Expect an indicative quote within 24-48 hours based on your sector, turnover and debtor quality.
- 2
Due diligence and facility agreement
Tandem will request 12 months of management accounts, aged debtor reports, and may conduct light credit checks on your major customers. Unlike high street banks, there's no lengthy credit committee process. The facility agreement sets out advance rates, service charges and any concentration limits on individual debtors.
- 3
Funding and ledger handover
For factoring, Tandem notifies your customers of the arrangement and takes over credit control. For discounting, you retain ledger management. First advances typically release within 48 hours of invoice submission. Tandem assigns a dedicated account manager who handles day-to-day queries and reserve releases.
FAQs
Does Tandem offer spot factoring or selective invoice finance?
Tandem primarily operates whole-turnover facilities where all invoices are funded through the arrangement. This keeps costs lower than selective or spot invoice finance products. If you only need occasional invoice funding, providers like Ultimate Finance or Sonovate offer pay-as-you-go models, though typically at higher discount rates per invoice.
What sectors does Tandem work with and are there any exclusions?
Tandem works across most B2B sectors including manufacturing, distribution, recruitment and professional services. They typically avoid very high-risk sectors like construction subcontracting, long-dated contracts over 90 days, or businesses heavily reliant on one or two customers. Each application is assessed individually rather than against rigid sector criteria.
How does Tandem's credit control approach work in factoring arrangements?
Under factoring, Tandem's team manages your sales ledger, sends statements, and chases overdue payments on your behalf. They'll use your business name and branding in communications. Clients report this frees up significant admin time, though you lose direct control of collections. If retaining client relationships is critical, invoice discounting may suit better.
Can I switch to Tandem if I already have invoice finance with another provider?
Yes, Tandem regularly takes on refinance cases from other providers. You'll need to give notice under your existing contract, typically 30-90 days. Tandem will coordinate the handover, including settling outstanding reserves and notifying customers if moving from another factoring arrangement. Expect the full switch to take 6-8 weeks from initial approach to first funding.
Our Verdict
Tandem Invoice Finance is a dependable independent at the £50k entry point. The personal service and quick decision-making are advantages for SMEs that want a responsive provider without the overhead of dealing with a bank. A solid option to include when comparing independent invoice finance quotes.
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