Clear Factor

Who is Clear Factor?

Clear Factor is a finance provider on a mission to help small businesses access affordable finance. It was founded after the financial crisis in 2008 which saw co-founder Ricky Shankar struggling with his company's cash flow due to unpaid invoices.

It’s the UK’s first fully digital invoice finance marketplace which allows trade investors to buy SME invoices. Unlike traditional invoice finance, there’s no single provider. Instead, you will be matched with an investor who covers the cost of your invoices.

What type of funding does Clear Factor provide?

Clear Factor provides a unique approach to invoice finance. Businesses can search the marketplace for an invoice finance provider, obtaining the best rates for a small fee.

The marketplace works by letting investors compete for invoices based on a live auction. Invoices are then matched to the best offer based on their risk.

How much of the invoice Clear Factor will cover will depend on a unique scoring system that’s applied to every invoice. This is based on risk factors using data from Companies House, credit risk agencies and Open Banking. These are rated between 1 and 5 based on risk, which will determine how much of an advance you will receive. For example, an invoice rated as 5 could receive an advance up to 90% of the value of the invoice.

How do you apply for funding with Clear Factor?

To apply for funding with Clear Factor, a company director needs to register as a user and complete strict Know Your Customer (KYC), Know Your Business (KYB), Anti Money Laundering (AML) checks to ensure a safer ecosystem.

You will need to provide access to your business bank account through Open Banking so you will need a bank that participates in this scheme.

Once you have completed the checks and created an account, you must submit invoices that Clear Factor can assess and score which will help them match you with an investor.