Getting an Invoice Factoring Quote – What to Know Before You Get Started

If your business is exploring ways to improve cash flow, invoice factoring is likely one of the top options you’re considering. It’s fast, flexible, and based on money already owed to you – making it a practical funding choice for many UK SMEs.

But before jumping in, it’s important to know what to expect from a factoring quote, what factors affect pricing, and how to choose the right provider. That’s where this guide comes in.

At The Best Finance Group, we help businesses like yours compare factoring quotes from top UK lenders – saving you time, reducing costs, and helping you secure the right facility without the hassle of going direct.

In this post, we’ll cover:

• What a factoring quote includes
• How factoring pricing works
• What documents you’ll need
• The difference between a quote and an offer
• How to get the best deal

What Is a Factoring Quote?

A factoring quote is an initial estimate provided by a factoring company (or broker) outlining the potential terms and costs of an invoice finance facility. It typically includes:

• Advance rate (the percentage of invoice value paid upfront)
• Service or management fee
• Discount fee (interest-style charge)
• Facility size or credit limit
• Type of factoring (recourse vs non-recourse, confidential vs disclosed)

This quote gives you a snapshot of how the facility would work if you went ahead – but it’s not a formal agreement until your documents are reviewed and the provider runs due diligence.

Why Businesses Request a Factoring Quote

If you’re waiting weeks or months to get paid by clients, a factoring facility can help you bridge that cash flow gap. But no two providers price their services the same way.

A factoring quote helps you:

• Understand how much working capital you could unlock
• Compare providers before committing
• Budget for fees and charges
• Decide between different types of facilities (recourse, non-recourse, selective)
• Get a feel for the lender’s service and responsiveness

Getting a quote is free, doesn’t affect your credit score, and helps you make an informed decision. It’s also much quicker through a broker who can access multiple lenders with one application.

What Factors Influence a Factoring Quote?

Just like with any financial product, several things affect the rates and terms you’ll be offered:

1. Your Monthly Turnover
   Higher volumes often unlock better rates.
2. Your Customer Credit Quality
   Factoring is based on your customers’ ability to pay. Strong client portfolios = lower risk.
3. Industry Sector
   Sectors like recruitment, logistics, wholesale, and construction are common – but risk profiles vary.
4. Invoice Terms
   Longer client payment terms may increase the discount fee.
5. Your Company’s Trading History
   More established firms may access better terms, but even startups can qualify.
6. Invoice Volume & Frequency
   The more invoices you raise, the more flexible your facility may be.

How Long Does It Take to Get a Factoring Quote?

If you’re using a broker like Best Factoring, you can usually get a quote within 24 hours – sometimes even same day. It depends on how quickly you can provide the required info.

You’ll usually need to share:

• Company name and number
• Most recent management accounts or annual accounts
• Sample invoices
• Details of your biggest clients
• Current monthly turnover and projected growth

Our application process is quick, free, and completely confidential. No hard credit checks are done just to receive a quote.

What’s the Difference Between a Quote and an Offer?

A quote is an initial estimate based on the information you provide. It gives you an idea of how much funding you could access and at what cost.

A formal offer (or credit-approved facility) comes later, once the factoring company has reviewed your documents and run background checks. This may include:

• Reviewing your customer list
• Credit checks on key clients
• Analysis of past invoice payments
• Full due diligence on your business

At Best Factoring, we help speed this up by packaging your application properly and matching you with lenders most likely to approve.

How to Compare Factoring Quotes

When comparing quotes, look beyond just the cost. Ask:

• Are fees clearly explained?
• Is there flexibility to grow the facility?
• Can I factor selectively, or do I have to submit all invoices?
• Will the factoring company interact with my clients?
• What happens if an invoice goes unpaid?
• Is there a lock-in period or termination fee?

We’ll walk you through all these questions and help you compare options side by side.

FAQs About Factoring Quotes

Is there a cost to get a factoring quote?
No. Getting a quote is free and carries no obligation.

Will it affect my credit score?
No. Soft checks may be done, but full credit searches only happen when moving forward with an offer.

Can I get a quote if I’m a startup?
Yes, especially if you’re working with reputable clients and raising regular invoices.

Do I need to factor all invoices?
Not always. Selective or spot factoring is available from some providers.

Can I get multiple quotes?
Absolutely. That’s what we do – compare offers from across the market and bring the best options to you.

Get a Factoring Quote from the UK’s Top Providers

At Best Factoring, we help UK businesses find the right invoice factoring solution by:

• Comparing quotes from top lenders
• Offering independent, expert advice
• Simplifying the paperwork
• Speeding up approval and funding
• Supporting you beyond setup

We work with over 25 trusted UK factoring providers, including high street banks, specialist lenders, and independent funders.