Factored review: rental advances for UK landlords

Factored is a London specialist that gives landlords an upfront lump sum in exchange for part of their future rent. Rather than lending against the property, it buys a slice of the contracted rent from an existing assured shorthold tenancy and collects it back over an agreed term. Factored is one of the lenders on our panel, and as an independent broker we can set its rental advance alongside other short term and property-backed options so you can see which fits your property business best.

01About Factored

Factored trades as Factored Technologies Limited, a company registered in England and Wales, and is based on Great Portland Street in central London. It says it was set up in 2020 by landlords who were frustrated with how slow and paperwork-heavy traditional property finance could be, and that it has since funded more than 1,000 UK landlords.

Its focus is narrow and deliberate: smaller advances for residential landlords, underwritten on the rent a property already earns rather than on a valuation of the bricks and mortar. It describes the product as working alongside existing finance rather than replacing it.

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

02What Factored funds

Factored offers one core product, a rental advance. You agree to sell a portion of your future contracted rent, Factored pays you that money upfront, and repayments are then collected automatically from your rental income over the term you choose. Factored is clear that this is not a loan: it describes itself as purchasing your rental income rights, with a single fee agreed before you sign rather than interest building up over time.

Feature	What Factored says
Product	Advance against future rent from a signed assured shorthold tenancy
Typical size	£10,000 to £75,000, depending on the rent the property earns
Rent covered	Up to 12 months of contracted rent
Cost structure	One fixed fee agreed upfront, with no interest schedule
Early settlement	No early repayment penalties, with discounts for settling early
Security	No charge registered at HM Land Registry, and no valuation or remortgage
Speed	Funds usually paid within 24 hours of signing

Factored mentions uses such as EPC upgrades, refurbishment, emergency repairs, tax bills, managing cash flow and growing a portfolio. Energy efficiency work is a common reason landlords look at it, but the money is not tied to one purpose.

03How a rental advance differs from a loan

The closest comparison on our site is a merchant cash advance, where a provider buys a share of a business's future card takings for a fixed fee. Factored applies a similar idea to rent. Because the amount you receive is linked to rent that is already contracted, the size of the advance is capped by the rent roll rather than by the value of the property or your wider income.

That has two practical effects. First, there is no property valuation, no legal work and no change to your existing mortgage, which is why it can move quickly. Second, the advance is usually much smaller than what you could raise by borrowing against the property itself, so it suits targeted spending rather than large purchases.

Factored mentions uses such as EPC upgrades, refurbishment, emergency repairs, tax bills, managing cash flow and growing a portfolio.

04Who Factored suits (and who it may not)

Factored says it accepts single property and multiple property landlords, with no minimum portfolio size, and that limited companies and special purpose vehicles can apply. It funds UK residential lets, including HMOs and student accommodation, where there is a signed assured shorthold tenancy with at least six months left to run.

It is likely to suit you if:

• you have a tenant in place on an AST and a reliable rent history;
• you need a modest sum quickly, for example for EPC work or an urgent repair;
• you would rather not remortgage or add a second charge to the property;
• you want a known total cost from day one.

It may not be the right fit if:

• the property is vacant, let on a non-AST basis or the tenancy is close to ending;
• you need more than a year's rent, or six-figure sums for a purchase or major refurbishment;
• your rent is your main source of income for other commitments, since part of it will be collected for the term;
• the property is commercial rather than residential.

05What Factored looks at

Because the advance is underwritten on rent, the paperwork is lighter than a typical property loan. Factored asks for:

• a signed assured shorthold tenancy agreement;
• proof that you own the property;
• bank statements showing the rent being received.

It says it runs soft credit searches only, and that it assesses the quality of the tenancy upfront. If a tenant falls into arrears, Factored says it works with the landlord, and the terms for that situation are set out in the agreement before you sign. Read that section carefully, because it tells you what happens to the remaining balance if rent stops.

06Pros and cons

Pros

• Fast: funds usually arrive within 24 hours of signing.
• No valuation, legal work or remortgage, and no charge on the property.
• One fixed fee agreed upfront, so the total cost is clear.
• No early repayment penalty, with a discount for settling early.
• Open to individual landlords, limited companies and SPVs, with no minimum portfolio.

Cons

• Limited to residential properties with an AST in place.
• Advance size is capped by up to 12 months of contracted rent.
• Part of your rent is collected for the term, which reduces the income you have available.
• A fixed fee on a short term can work out more expensive than longer, secured borrowing, so compare the total cost.

07Applying through a broker vs going direct

You can apply to Factored directly through its website. Going through a broker makes sense if you are not yet sure a rental advance is the best tool. Landlords running a property business often have several routes: an advance against rent, a short-term business loan through their trading company, or borrowing secured on property they own.

We search the market, present your case to suitable lenders and handle the back and forth, so you make one enquiry rather than several. It is free to enquire; any broker fee is disclosed separately before you proceed. To see what is available, start with our Instant Quotes tool, which compares lenders in minutes. You can also check any firm on the FCA Register before you apply.

08Alternatives to Factored

• Together: better for larger sums secured on property, including bridging and second charge loans, where you need more than a year's rent and can accept a charge on the property.
• Selina Finance: a credit line secured on your home that you can draw on when needed, which may suit homeowners with good equity who want flexibility over a longer period.
• Second charge business loans: a way to raise more against property you already own without replacing your first mortgage, usually over a longer term.
• Revenue based finance: worth comparing if your property business also earns trading income, such as serviced lets, where repayments can track turnover.

Whichever route you choose, compare the total amount repaid, how long the money is tied up and what happens if your income dips before deciding.