Switch your invoice finance facility

13/01/2026

Switching invoice finance facilities can bring significant advantages to businesses using factoring and invoice discounting.

Whether to increase your advance rate (or initial prepayment) or improve the level of service you’re currently receiving, for example, there are a number of reasons invoice finance clients may choose to switch lenders. And with a formal procedure in place which makes it as easy as possible for a business to move their invoice facility to a different lender, it can be a straightforward process.

Common reasons businesses switch invoice finance facilities

1. To improve the cost, financial structure and overall value of the facility
2. To improve the level of service they’re receiving
3. To increase the percentage of the invoice value that’s paid upfront (initial prepayment, or advance rate)
4. To work with a lender who specialises in their industry
5. Access additional services, such as bad debt protection
6. Improve funding, credit and/or concentration limits
7. To ensure the facility continues to support the business in the current economic climate
8. Due to a breakdown in relationship

Why it’s straightforward to switch lenders

Invoice finance companies which are members of the sector’s trade association, UK Finance, are required to comply with something called the Inter-Member Transfer Process (IMTP).

The IMTP includes a number of commitments and timescales that the members involved must meet when a client switches their factoring or invoice discounting facility to another lender, essentially making it as easy as possible for the client.

Each commitment is focused on ensuring the lenders work together and communicate with each other, as well as with the client business, to ensure the process works smoothly and that the client is kept informed of the progress of any transfer.

They also commit to ensuring that, following a transfer, any monies received from customers relating to the debts transferred is advised and forwarded to the new provider in a timely manner to avoid disruption to the client.

What to consider when thinking of switching

Be sure to consider the whole picture when it comes to switching invoice finance companies – specifically with regards to the overall value of the facility you’re receiving.

While the cost of the facility is important, so too is the level of service you receive, the ease of running the facility and the relationship you have with your lender.

However, it is prudent to benchmark your facility against what’s available on the wider market regularly given the evolution and advancements of facilities on offer, and the number of new entrants.

The hardest part is usually to identify the invoice finance companies which can provide a more suitable facility or service. That’s where we can help.

As a specialist invoice finance broker, Hilton-Baird Financial Solutions has been helping businesses get the most from their funding facilities since 1997. By understanding your business and existing facilities, we can benchmark them against the wider market and introduce the invoice finance companies who tick the boxes most important to you.

Why use Hilton-Baird?

• Access the most suitable lenders and facilities for your specific requirements
• Save valuable time in your search, with no need to apply to multiple lenders
• Fast access to decision makers across a wide range of invoice finance companies
• Our team was voted Invoice Finance Broker of the Year at the Business Moneyfacts Awards in 2018, 2020 and 2022
• Over 25 years’ experience of supporting businesses with a wide range of funding requirements
• We’re independent, authorised by the Financial Conduct Authority and affiliates of UK Finance

To discuss the process of switching invoice finance company, and whether it’s the right step for your business, please contact our team on 0800 9774833 or schedule a call back at a convenient time.

“Hilton-Baird’s consultative and client-focused approach was invaluable in helping us to quickly and seamlessly find a replacement invoice discounting facility. We chose the new funder as we liked their approach, their structure and particularly because they, like Hilton-Baird, understand our business and its requirements. Both teams are clearly knowledgeable and passionate about supporting businesses like ours. Our new facility will enable us to push forward with our plans, without having to be concerned about the flow of cash.”