If you’re looking for a way to boost your cash flow and grow your business, invoice finance might be the solution you need. But before you sign up for any invoice finance service, you might wonder: is invoice finance regulated in the UK? And if not, is that a good or a bad thing?
In this blog, we’ll explain what invoice finance is, how it works, and what the regulatory landscape looks like. We’ll also show you why being unregulated doesn’t mean being unreliable, and how you can find the best invoice finance provider for your business.
What is Invoice Finance?
Invoice finance allows businesses to get paid faster against the amount due on their unpaid invoices. Instead of waiting 30, 60, or even 90 days to get paid, invoice finance lets you get paid a portion instantly. This helps businesses improve their cash flow by providing them with immediate funds that they can use to pay for their expenses or invest in their growth.
Regulatory Bodies in the UK
The UK has several regulatory bodies that oversee financial services and ensure fair practices. Some of the key ones are:
Financial Conduct Authority (FCA): This is the conduct regulator for around 50,000 financial services firms and financial markets in the UK. It aims to protect consumers, enhance market integrity, and promote competition in the interests of consumers.
UK Finance: This is a trade association that represents the invoice finance and asset-based lending industry in the UK. It sets the standards of practice for its members, which covers aspects such as transparency, fairness, and complaints handling.
Professional Standards Council (PSC): This is an independent body that oversees the UK Finance Code and the complaints process.
Is Invoice Finance Regulated?
Benefits of Unregulated Invoice Finance Providers
There are a few reasons why being unregulated isn’t necessarily a bad thing:
Flexibility: Unregulated providers often have greater flexibility to tailor their services to meet the unique needs of the business. Resulting in more customised and responsive financial solutions.
Reduced Red Tape: Without the constraints of stringent regulatory requirements, some providers may offer a quicker application and approval process. This agility is beneficial for businesses in need of quick and efficient financial solutions.
Speed due to non-regulation: Unregulated providers may have faster turnaround times and lower costs, as they don’t have to deal with the compliance and bureaucracy of regulated providers. This means they can offer quick finance solutions to businesses that need them urgently.
Get in Touch with us Today!
If you’re interested in invoice finance and want to find out more, get in touch with us today. We offer flexible, fast, and affordable solutions for your business. We can help you unlock the cash tied up in your unpaid invoices and grow your business with confidence.
Apply for invoice finance here or call us on 0161 955 3522 to get a free quote and a personalised proposal. Don’t let cash flow problems hold you back – invoice finance is the way forward.