Pulse Cashflow Finance review: invoice factoring for UK businesses

Pulse Cashflow Finance is an independent invoice finance provider based in Basingstoke, Hampshire. It funds UK businesses that sell to other businesses on credit terms, advancing cash against unpaid invoices and, if you want, running your credit control. Smart Funding Solutions is an independent broker, so we can compare Pulse with other invoice finance providers and help you choose the facility that fits. You can read more on Pulse Cashflow Finance's own website.

01About Pulse Cashflow Finance

Pulse Cashflow was founded in 2010. Regional business press reported that it secured a £14 million funding line from Hadrian's Wall Secured Investments to meet demand from SMEs, and that its management team has a background in asset based finance. Its strongest presence is in the South East, but it works with businesses across England.

Its tagline is "Finance the way it should be. Fast, Transparent, Fair." In practice that means clear terms, quick decisions from local decision makers and a hands on approach to collecting debts. That local, relationship led style is a contrast to some of the larger bank owned invoice finance providers.

Pulse Cashflow Finance is one of the lenders on our panel. Smart Funding Solutions is an independent broker and is not part of Pulse Cashflow Finance.

02What Pulse Cashflow Finance funds

Pulse's core product is invoice factoring with credit control included. Its website describes the process in five steps:

1. Pulse makes an initial advance of up to 90 per cent of your outstanding invoices.
2. You send a copy of each new customer invoice as you raise it.
3. Pulse pays up to 90 per cent of each invoice, usually within 24 hours.
4. Pulse collects payment from your customer.
5. You receive the balance once the customer pays, less Pulse's charges.

Pulse says facilities run up to £2 million. Trade press has also reported Pulse adding an invoice discounting offering, where you keep control of collections, and a trade finance product. If you are weighing up the two main structures, our guide to invoice discounting explains how it differs from factoring. Businesses that need cash to fulfil an order before they can invoice may also want to read about purchase order finance.

03Who Pulse Cashflow Finance suits (and who it may not)

Pulse says it works with B2B companies trading on credit terms with annual turnover from around £300,000 (including start ups) up to about £15 million. The sectors it names include manufacturing, transport, security services and construction.

• Growing B2B businesses where sales are rising faster than cash, because the facility grows as your invoices do.
• Firms troubled by late payment, who value having a specialist chase invoices for them.
• Smaller teams without a credit controller, who would rather outsource sales ledger management.
• Newer businesses with contracts in place, as Pulse says it considers start ups within its turnover range.

It is less likely to suit businesses selling mainly to consumers, those with very low turnover, or larger companies needing facilities well above £2 million. Firms that want to fund only the odd invoice may prefer a selective product. Construction businesses using staged applications for payment should check how their contracts would be treated, as these are often harder to fund than standard invoices.

04What Pulse Cashflow Finance looks at

As with most invoice finance providers, Pulse's decision depends heavily on your customers and the quality of your sales ledger. Typically you would be asked for:

• An aged debtor list showing who owes you money and for how long.
• Sample invoices and your standard terms and conditions of sale.
• Recent accounts or management information and a picture of turnover.
• Details of any existing finance or charges over the business.
• Information on your largest customers and any concentration risk.

A spread of creditworthy customers who pay reliably will usually support a better facility than a ledger dominated by one or two accounts.

05Pros and cons

• Pro: advances against invoices, usually within 24 hours according to Pulse.
• Pro: credit control and ledger management included with factoring.
• Pro: local decision makers and a relationship based approach.
• Pro: considers start ups and businesses from around £300,000 turnover.

• Con: facilities capped at around £2 million, so larger businesses may outgrow it.
• Con: with factoring, your customers deal with Pulse on collections.
• Con: only works for B2B invoices on credit terms.
• Con: whole ledger facilities usually involve a minimum term and notice period, so read the agreement carefully.

06Applying through a broker vs going direct

Invoice finance agreements are rarely like for like. Advance rates, fee structures, notice periods, minimum terms and how disputes are handled all vary, and those details can matter more than the headline price. Comparing several providers before you sign is the best protection.

We look at your debtor book, sector and growth plans, search the market and approach suitable lenders with a clear presentation of your business. You complete one application and get a straightforward comparison. It is free to enquire; any broker fee is disclosed separately before you proceed. To get started quickly, use our instant quotes tool to compare lenders in minutes.

07Alternatives to Pulse Cashflow Finance

• Skipton Business Finance: a building society backed invoice finance provider that suits businesses wanting an established name and a dedicated relationship manager.
• Bibby Financial Services: a long-established invoice finance specialist worth comparing for small and growing B2B firms.
• Ultimate Finance: a better fit if you may want asset finance or loans alongside invoice finance.