eCapital Commercial Finance review: invoice finance for UK businesses

eCapital Commercial Finance is an established invoice finance provider that helps UK businesses turn unpaid customer invoices into working capital. It is known for asset based thinking: looking at the quality of your debtor book rather than just last year's profit. eCapital Commercial Finance is one of the lenders on our panel, and as an independent broker we can compare its offer with other invoice financiers before you sign up.

01About eCapital Commercial Finance

eCapital says it has more than 20 years in business and has funded over £13 billion in the UK. Its UK operation runs through eCapital Commercial Finance Ltd, with regional companies covering the North and the South West, and offices in Reading, where it is registered, Glasgow, Manchester, Bristol and Birmingham. It is part of the wider eCapital business, and offers a cross border service linking the UK and the US.

It works across more than 80 industries, naming manufacturing, recruitment, wholesale, transport, telecommunications, training and healthcare among them, and highlights particular activity in transport, staffing and healthcare.

Smart Funding Solutions is an independent broker and is not part of eCapital Commercial Finance.

02What eCapital Commercial Finance funds

eCapital's UK website lists the following:

Facility size depends on your sales ledger, and eCapital refers to UK funding lines of £10 million and more for larger clients. Invoice finance facilities usually run on rolling agreements, with an initial term that is often around 12 months.

03Who eCapital Commercial Finance suits (and who it may not)

eCapital is a good fit for business to business companies with a healthy spread of creditworthy customers and long payment terms, such as hauliers waiting 60 days for payment, recruitment agencies paying weekly payroll, wholesalers and manufacturers. Because it says it funds based on the strength of the assets rather than traditional credit metrics, it can consider businesses that have had weaker financial performance, including those that are growing fast, restructuring or recovering.

Growth is where invoice finance often shines. As your sales rise, the amount you can draw usually rises with them, without renegotiating a loan. A business that doubles its turnover after winning a large contract can find a well set up facility keeps pace far better than a fixed overdraft.

It is less suited to businesses that sell mainly to consumers, those with very small or occasional invoicing, or firms whose invoices are subject to frequent disputes, stage payments or retentions. Very early stage businesses with only one or two customers may find a pure selective funder simpler.

Facility size depends on your sales ledger, and eCapital refers to UK funding lines of £10 million and more for larger clients.

04What eCapital Commercial Finance looks at

Invoice financiers focus on your ledger. Typical information requested includes:

• An aged debtors and aged creditors report.
• Copies of customer contracts or terms and sample invoices.
• Recent accounts and management information.
• Details of customer concentration, credit notes and any disputes.
• Information on directors and, often, a personal guarantee or warranty.

A survey or audit of your sales ledger is common before a facility goes live. This is a general guide for invoice finance rather than eCapital's published checklist.

05Pros and cons

Pros

• Full range of invoice finance products, from selective to whole ledger.
• Funds on ledger strength, so weaker recent results are not automatically a barrier.
• Regional offices across England and Scotland.
• Recruitment and transport experience, plus a UK and US cross border offering.

Cons

• Whole ledger facilities usually involve a contract and notice period.
• Factoring means your customers deal with the provider on collections.
• Less suitable for consumer facing businesses or very small ledgers.

06Applying through a broker vs going direct

Invoice finance agreements vary widely in structure, notice periods and what is included, so the headline offer is only part of the picture. We compare invoice finance providers, explain the differences between invoice discounting and factoring, and approach the lenders that suit your ledger. For staffing businesses, we also compare specialist recruitment finance.

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

07Alternatives to eCapital Commercial Finance

• Bibby Financial Services: a large independent invoice financier worth comparing for whole ledger facilities.
• Creative Capital: a smaller selective funder with no minimum contract, better for occasional single invoice needs.
• Sonovate: a specialist for recruitment and contractor businesses.

If one customer makes up most of your sales, see our guide to invoice finance with a single customer.