Redd Factors Review
Redd Factors is an independent invoice finance provider offering factoring and discounting facilities from £50,000. They serve UK SMEs across a range of industries, providing a personal and flexible service with direct access to senior decision-makers. Their independent model allows them to take a pragmatic view on businesses that might not fit the strict criteria of larger providers.
Redd Factors is an independent UK invoice finance provider offering factoring and discounting from £50,000, with advance rates around 85% and service charges from 0.75%. More detail + scope
This page covers
Redd Factors 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 Redd Factors Fits
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Manufacturing or distribution firms with £500k-£5m turnover that need flexible credit control support
Redd's independent model and hands-on approach suits SME manufacturers who value direct access to decision-makers and a provider willing to understand sector-specific payment cycles.
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Recruitment agencies or professional services businesses looking to switch from a larger bank-owned provider
Redd typically offers faster underwriting and more flexible terms than high-street invoice finance arms, with the ability to accommodate businesses going through restructuring or management changes.
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Growing wholesalers or importers with £1m-£3m turnover needing immediate working capital
The £50k minimum makes Redd accessible to smaller SMEs, and their senior team can approve facilities quickly for straightforward trading businesses with good debtor quality.
When to Look Elsewhere
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Construction or long-term contract businesses needing application finance or retention handling
Better fit: Sonovate. Sonovate specialises in contract and retention finance structures that Redd's standard factoring model doesn't typically cover.
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Exporters needing multi-currency invoicing or international debtor coverage
Better fit: HSBC Invoice Finance. HSBC's global banking infrastructure handles cross-border invoicing and foreign exchange more comprehensively than smaller independent providers.
How Redd Factors Compares
| Provider | Type | Min facility | Fee from | Advance to | Speed |
|---|---|---|---|---|---|
| Ultimate Finance | both | £50k | Not published | 90% | 5 days |
| IGF Invoice Finance | both | £2m (£5m+ turnover) | Not published | 90% | 7 days |
| Time Finance | both | £100k | Not published | 85% | 10 days |
vs Ultimate Finance: Ultimate has deeper sector expertise in logistics and transport, while Redd offers more generalised coverage with faster senior-level decisions.
vs IGF Invoice Finance: IGF is part of a larger European group with formal processes, whereas Redd's smaller independent structure allows for more pragmatic underwriting on turnaround cases.
vs Time Finance: Time Finance is AIM-listed with stricter governance requirements, while Redd's private ownership permits more flexible deal structures for non-standard clients.
Illustrative worked example
Hypothetical: A Nottingham-based packaging distributor with £1.2m turnover
Not a real client. The charges are illustrative assumptions, not Redd Factors's published rates; Redd Factors quotes each facility individually. Monthly cost = £750 service charge (0.75% 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 Redd Factors
- 1
Initial enquiry and assessment
Contact Redd directly or through a broker. You'll speak with a senior underwriter who reviews your sales ledger, turnover history, and debtor spread. Expect a preliminary decision within 48 hours for straightforward cases.
- 2
Due diligence and proposal
Redd conducts debtor quality checks, reviews recent management accounts, and assesses any existing finance arrangements. They'll issue a formal proposal detailing advance rates, fees, and any specific covenants within 3-5 working days.
- 3
Legal documentation and onboarding
Once you accept terms, Redd's legal team prepares the facility agreement and registers security. They'll integrate with your accounting system if using discounting, or set up client notification processes for factoring. First funds typically release 7-10 days from acceptance.
- 4
Ongoing management
For factoring, Redd's credit control team manages collections and ledger administration. For discounting, you retain control but submit regular sales ledger reports. Credit limits are reviewed quarterly, with facility increases available as turnover grows.
FAQs
What sectors does Redd Factors typically finance?
Redd works across most B2B trading sectors including manufacturing, distribution, recruitment, wholesale, and professional services. They avoid construction with long retention periods and highly regulated sectors like care homes. Their independent status means they can take a commercial view on businesses in turnaround or with recent CCJs that larger providers might decline.
How does Redd's pricing compare to high-street bank invoice finance?
Service charges typically range from 0.5% to 1% of invoiced turnover, comparable to bank-owned providers. Discount charges sit at base rate plus 2.5% to 4.5%, sometimes slightly higher than Lloyds or Barclays but reflecting Redd's willingness to finance businesses with less-than-perfect credit profiles. Total monthly costs for a £1m turnover business usually fall between £800 and £1,500.
Can Redd Factors help if I'm switching from another invoice finance provider?
Yes, Redd regularly takes over facilities from other providers. They'll review your existing arrangement, handle the legal transfer including notice periods, and can often improve terms if your business has grown or debtor quality has strengthened. The switch process typically takes 3-4 weeks from initial approach to first funding.
What advance rates can I expect from Redd Factors?
Advance rates typically range from 80% to 90% of approved invoice value, depending on debtor concentration, payment terms, and sector risk. Recruitment agencies with blue-chip clients might achieve 90%, while businesses with longer payment cycles or more concentrated debtor books sit closer to 75-80%. The remaining balance releases once your client pays, minus fees.
Does Redd Factors require personal guarantees from directors?
Redd usually requires limited personal guarantees from directors holding more than 20% of shares. The guarantee amount is typically capped at 12-24 months of facility fees rather than the full debt exposure. For well-established businesses with strong balance sheets, Redd may waive or reduce guarantee requirements during negotiation.
Our Verdict
Redd Factors is a reliable independent at the £50k entry point with a pragmatic, flexible approach. They are particularly worth considering if you have been declined by a bank or need a provider willing to take a common-sense view on your business. Good for SMEs that value personal service.
Official site: Redd Factors
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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