Creative Capital review: selective invoice finance for UK SMEs

Creative Capital is a small, independent lender that specialises in selective invoice finance: releasing cash against the invoices you choose, when you choose, without signing up to a long term facility. Creative Capital Solutions is one of the lenders on our panel, and as an independent broker we can set its offer against other selective and whole turnover invoice finance providers before you commit.

01About Creative Capital

Creative Capital trades through Creative Capital Solutions Ltd and describes itself as a privately funded, owner managed business based in the Manchester and Cheshire area. Regional press reported in 2015 that Creative Capital, then based in Tarporley, Cheshire, had reached £30 million of lending in its first five years, having started in 2010.

The firm's pitch is aimed at small businesses that banks and large invoice financiers can overlook: decisions without committee delays, a team with corporate finance experience, and the flexibility to pay only for what you use.

Smart Funding Solutions is an independent broker and is not part of Creative Capital.

02What Creative Capital funds

Creative Capital's FAQs state there are no minimum contractual terms, so you can use the facility as and when you need it.

03Who Creative Capital suits (and who it may not)

Creative Capital says its selective invoice finance suits businesses with occasional or ongoing cash flow pressure, long payment terms from large customers, rapid growth, seasonal trade, or a sales ledger concentrated on a few customers. It also mentions start ups and businesses whose bank facilities are fully used or unavailable. Because the funding is separate from your other borrowing, it can sit alongside an existing bank arrangement.

A typical use case is a manufacturer that wins a large order from a national customer on 60 day terms. Rather than wait two months to be paid, it can draw against that one invoice, use the cash for wages and materials, and stop using the facility once the customer settles.

It is built for business to business trade. It may not suit you if you sell to consumers, if you want confidential funding, or if you would rather fund every invoice automatically. Transactions are disclosed: your customer is told, must confirm the invoice is undisputed and agrees to pay Creative Capital directly. Some businesses are comfortable with that; others prefer a confidential facility.

04What Creative Capital looks at

With selective invoice finance, the quality of your customer matters as much as your own accounts. Typical checks include:

• The invoice or order itself, with proof the goods or services have been delivered or agreed.
• The creditworthiness of the customer who will pay, often assessed by a credit insurer.
• Confirmation from the customer that the invoice is valid and free of dispute.
• Basic company information, recent bank statements and an aged debtors list.

Creative Capital says it gives an in principle answer the same day. The exact paperwork varies by deal.

05Pros and cons

Pros

• No long term contract: fund only the invoices you choose.
• Single debtor and concentrated ledgers are considered.
• Trade finance and bad debt protection available alongside invoice funding.
• Small, owner managed team with quick decisions.

Cons

• Disclosed to your customers, which not every business wants.
• Smaller lender, so very large facilities will need a bigger provider.
• Per invoice funding can work out dearer than a whole turnover facility if you use it constantly.

06Applying through a broker vs going direct

The right invoice finance product depends on how often you need cash, how many customers you have and whether confidentiality matters. We compare selective invoice finance with full invoice factoring and other options, present your case once and approach the lenders that fit. If you need to pay a supplier before a customer pays you, we can also look at trade finance from several providers.

It is free to enquire; any broker fee is disclosed separately before you proceed. Use Instant Quotes to compare lenders in minutes.

07Alternatives to Creative Capital

• eCapital Commercial Finance: a larger invoice financier offering selective and whole ledger facilities, better suited to bigger or growing ledgers.
• Sonovate: worth comparing for recruitment and contractor businesses.
• Kriya: an online provider that can fund individual invoices with a digital process.