Panel Financial Review
Panel Financial is an independent invoice finance provider offering factoring and invoice discounting with facilities from £100,000. They serve UK businesses across a range of sectors, providing a personal, relationship-led alternative to the larger bank-owned providers with direct access to senior decision-makers.
Panel Financial is an independent UK invoice finance provider offering factoring and discounting from £100,000, with advance rates around 85% and service charges from 0.45%. More detail + scope
This page covers
Panel Financial invoice finance products, minimum facility, advance rate and pricing
Not covered here
General invoice finance education (see /guides/), sector pages (see /industries/), the full provider directory (see /providers/)
Key Facts
When Panel Financial Fits
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Established businesses with £500k-£5m turnover needing a relationship-led service
Panel Financial's independent structure means you deal directly with senior decision-makers, not a distant bank credit committee. The £100k minimum suits growing SMEs outgrowing basic working capital facilities but not yet needing the £1m+ facilities typical at larger independents like Bibby or Ultimate Finance.
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Recruitment agencies, staffing firms, or professional services with B2B invoicing
Panel Financial specialises in sectors with weekly or bi-weekly payroll cycles where advance speed matters. Their factoring service includes ledger management, freeing finance teams to focus on growth rather than chasing overdue invoices.
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Owner-managed businesses wanting confidential funding without client notification
Their invoice discounting option lets you maintain full control of your sales ledger and customer relationships. Clients continue paying you directly, with Panel Financial operating behind the scenes against the security of your debtor book.
When to Look Elsewhere
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Start-ups or businesses invoicing under £30k monthly
Better fit: Hydr. Panel Financial's £100k minimum facility won't suit very small operations. Hydr offers selective invoice finance with no minimum turnover, better for early-stage or low-volume invoicers.
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Construction or long-dated contract businesses with 90+ day payment terms
Better fit: Sonovate. Standard invoice finance becomes expensive on slow-paying ledgers. Sonovate specialises in contractor and project-based sectors with flexible draw structures suited to milestone billing.
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Businesses needing same-day funding on individual invoices
Better fit: Triver. Panel Financial operates traditional facilities with monthly service charges. Triver's pay-as-you-go model with 24-hour funding on chosen invoices suits businesses with lumpy cash flow who only need occasional advances.
How Panel Financial Compares
| Provider | Type | Min facility | Fee from | Advance to | Speed |
|---|---|---|---|---|---|
| Skipton Business Finance | both | £100k | Not published | 90% | 7-10 days |
| IGF Invoice Finance | both | £2m (£5m+ turnover) | Not published | 90% | 10-14 days |
| Time Finance | both | £250k | Not published | 90% | 5-7 days |
vs Skipton Business Finance: Owned by Skipton Building Society, with pricing agreed per facility (not published) and less flexible credit appetite than Panel Financial's independent underwriting.
vs IGF Invoice Finance: Independent like Panel Financial but part of a larger finance group; comparable service model but typically slower credit decisions.
vs Time Finance: Higher minimum facility than Panel Financial and premium pricing, but offers faster turnaround and wider asset finance integration for complex deals.
Illustrative worked example
Hypothetical: A Midlands-based IT staffing agency with £1.2m annual turnover
Not a real client. The charges are illustrative assumptions, not Panel Financial's published rates; Panel Financial quotes each facility individually. Monthly cost = £450 service charge (0.45% of £100,000) plus about £514 discount charge (7.25% a year on £85,000 drawn for a month, at the 3.75% Bank of England base rate).
Setting Up With Panel Financial
- 1
Initial enquiry and fit assessment
Contact Panel Financial directly (typically via broker or their website). Expect a same-day or next-day conversation with a senior credit manager who will review your sector, turnover, debtor quality, and facility size. They'll request recent management accounts and an aged debtors report.
- 2
Proposal and due diligence
Panel Financial issues a formal proposal within 3-5 working days outlining advance rate, service charge, and discount margin. Subject to approval, they conduct debtor verification (contacting key customers to confirm invoice validity) and a light-touch review of your accounting systems and credit control procedures.
- 3
Legal completion and first advance
Panel Financial's solicitors draft a facility agreement (typically debenture security over debtors). Legal process takes 5-10 working days. Once signed, they release the initial advance against eligible invoices. Ongoing advances are processed within 24 hours of submitting approved invoices.
FAQs
Does Panel Financial operate a credit insurance requirement?
Panel Financial does not mandate credit insurance on your debtor book, unlike some bank-owned providers. They assess customer creditworthiness at onboarding and may apply concentration limits if one customer represents over 25-30% of your ledger. For high-risk sectors or weaker debtor profiles, they may request voluntary insurance or accept a lower advance rate rather than decline the facility outright.
How does Panel Financial handle disputed invoices or payment queries?
Under factoring, Panel Financial's ledger team manages customer queries directly and will withhold advances on disputed invoices until resolution. With invoice discounting, you retain control and must notify Panel Financial immediately of any disputes. In both cases, disputed invoices are excluded from the borrowing base calculation. Resolution typically requires proof of delivery, agreement amendments, or customer sign-off before the invoice becomes eligible again.
Can I exit a Panel Financial facility early, and what are the penalties?
Panel Financial facilities typically carry a 12-month minimum term, renewable annually. Early exit within the first year usually incurs a breakage fee calculated on the remaining months (often 50-75% of anticipated service charges). After the initial term, you can exit with 30-90 days' notice depending on your agreement. Always confirm exit terms at proposal stage, especially if you anticipate acquisition, refinancing, or seasonal trading patterns.
What happens if a customer doesn't pay an invoice Panel Financial has advanced against?
Panel Financial holds full recourse against your business. If a customer fails to pay within an agreed period (typically 90-120 days from invoice date), the advance is reversed and charged back to your facility balance. You remain liable for repayment. This differs from non-recourse factoring where the provider absorbs bad debt risk.
Panel Financial will work with you on recovery, but ultimate responsibility sits with your business, which is why they assess both your finances and your customer credit quality upfront.
Our Verdict
Panel Financial is a dependable independent provider for businesses needing facilities from £100k upwards. The personal approach and direct senior access are genuine advantages over more process-driven bank providers. Worth including in your comparison if you want competitive independent terms alongside bank quotes.
Official site: Panel Financial
Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.
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