ClearFactor

What ClearFactor does

Clear Factor Limited is a London-based fintech founded in 2018 that operates a digital invoice finance marketplace connecting UK small and medium-sized enterprises that need short-term working capital with investors seeking exposure to invoice-backed assets. The company's origins trace to co-founder Ricky Shankar's experience during the 2008 financial crisis, when his prior software services firm was reclassified as high risk by incumbent invoice finance lenders; he and co-founder and CEO Sanjay Padhee established Clear Factor to rebuild the product category digitally and on transparent, marketplace-style economics.

The core product is a self-serve online platform that accepts UK invoices valued between £100 and £5,000 (with at least 15 days to maturity) and rates each on a proprietary 1-5 scale via a scoring engine that combines Companies House records, credit bureau inputs, real-time Open Banking transaction data, and internally generated platform signals. Rated invoices are routed into an automated auction where pre-onboarded investors bid on a yield basis, with the lowest acceptable offer winning the allocation. On approval, Clear Factor disburses 75-90% of invoice face value (the higher end for stronger scores) into an integrated e-money account held in the SME's name, with collections processed through Faster Payment or BACS rails. The platform is supported by KYC/KYB/AML workflows and FCA-aligned compliance.

Clear Factor monetises through three per-transaction revenue streams: a one-time 2.4% + VAT initial advance fee, daily discount charges (minimum £1) that function as interest until the debtor settles, and unit banking fees of 15p per credit entry and 50p per outgoing payment. Customer acquisition is primarily product-led via a self-serve portal, supplemented by an "Introducer" channel program for brokers, accountants, and client-facing institutions. The product is currently limited to UK-incorporated obligors, the team is 1-10 people at the Baker Street headquarters, and the company has been funded to date by a single 2020 seed round of approximately $1.23 million.

Name

ClearFactor

Legal name

Clear Factor Limited

Website

https://clearfactor.io

Company type

Private

Founded year

2018

Operating status

Operating

Headcount range

1–10 employees

Short description

Clear Factor Limited is a London-based fintech operating a digital invoice finance marketplace that connects UK SMEs with investors via a proprietary 1-5 invoice scoring system and auction, advancing 75-90% of face value on £100-£5,000 invoices.

Ownership category

akta.pro rank

Product category

Invoice Finance / Alternative Lending

NAICS

Sales Financing (52222)

SIC

Short-Term Business Credit Institutions (6153)

akta.pro primary industry

Invoice Trading / Receivables Marketplace (P2P) (FSAKAHAH)

akta.pro secondary industries

Receivables Finance (Factoring, Invoice Discounting, Forfaiting) (FSABAHAD), Invoice Factoring & Receivables Finance Brokerage (FSAEAEAO), Account Verification & Ownership (AVS/AOV, micro-deposits, auth) (FSAGACAB)

Keywords

• Invoice financing
• Working capital
• SME lending
• Alternative lending
• Invoice factoring

Headquarters

HQ city

London

HQ country

United Kingdom

HQ region

Europe

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Technology or R&D, Personnel, Marketing or Sales, Operations, Infrastructure, Others

Revenue model

1. Transaction Fee - Initial Advance Fee: A one-time fee charged on the amount initially advanced to the SME. This is a flat percentage fee charged at the time of funding.
2. Discount Charge (Interest): Daily discount charges calculated on the advance amount at the rate specified in the accepted investor offer, subject to a minimum charge of £1. This functions like interest on the invoice advance until the debtor pays.
3. Banking Transaction Fees: Fees charged for e-money account transactions: 15p per credit entry and 50p per Faster Payment or BACS payment to the business bank account.

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels5 records

Core offering

ClearFactor operates a fully digital, self-serve invoice finance marketplace that enables UK-based SMEs to sell outstanding invoices (valued £100-£5,000 with 15+ day due dates) to competing individual and business investors. The platform scores invoices on a 1-5 scale using Companies House, credit risk agency, and Open Banking data, then runs an automated auction where the lowest investor rate is selected and 75-90% of invoice value is advanced within 24 hours. Integrated e-money accounts process all fund disbursements and withdrawals to SME business bank accounts.

Product overview

ClearFactor operates a single unified invoice finance marketplace platform where SMEs can sell their outstanding invoices to competing investors for immediate working capital access. The core offering consists of the Clear Factor Invoice Finance Ecosystem, which encompasses invoice submission and auction functionality. The platform supports an e-money account for transaction processing and offers an introducer program for brokers and accountants to onboard business clients. The ecosystem connects SMEs needing cash flow with investors seeking alternative asset opportunities, using a competitive auction model where invoice ratings (1-5) determine advance rates of 75-90% of gross invoice value.

Differentiator

Problem solved

Functional benefit

Products and services

• Clear Factor Invoice Finance Ecosystem A digital marketplace enabling UK SMEs to sell outstanding invoices to competing investors for immediate working capital access, and investors to participate in invoice purchases. The platform matches invoice sellers with competing investors via auction, advancing 75-90% of invoice value within 24 hours.
• Invoice Submission & Auction Platform An online platform where UK SMEs submit invoices (valued £100-£5,000 with 15+ day due dates) for investor bidding. Invoices are rated 1-5 using Companies House, credit risk agency, and Open Banking data, with advance rates of 75-90% based on the score.
• E-Money Account Services ClearFactor opens e-money accounts in business names to process all transactions, enabling SMEs to receive advances and withdraw funds to their business bank accounts via Faster Payment or BACS, subject to 15p per credit entry and 50p per outbound transaction fees.

Segments2 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

Feature4 records

Scale indicators5 records

Recent moves5 records

Expansion highlights4 records

Regional players

• BlueVine: US-based fintech offering invoice factoring and lines of credit to SMEs through a digital platform. Comparable product and SMB focus but operates primarily in the US, not the UK market ClearFactor serves.

Direct peers

• Iwoca: UK fintech providing working capital and invoice-backed lending to SMEs using Open Banking and automated credit decisioning. Direct competitor with overlapping technology stack and customer segment.
• Funding Circle: UK-originated P2P/marketplace lending platform serving SMEs, publicly listed and now operating globally. Competes with ClearFactor for the same SME borrower base using a marketplace/institutional investor model.
• Stenn: Global fintech providing invoice and trade finance to SMEs through a digital platform with institutional investor backing. Comparable in asset class and digital delivery, though larger and more international.
• MarketInvoice: UK-based invoice finance marketplace that connected SMEs with investors, operating a very similar auction model before being acquired by Barclays in 2019. Direct competitor and the closest historical analogue to ClearFactor.
• Koto (formerly MarketFinance): UK fintech offering invoice financing and business loans to SMEs through a digital platform, with elements of marketplace funding. Closely comparable in product mix, geography, and target customer.

Emerging players

• ThinCats: UK P2P lending platform focused on SME business loans, including receivables-backed facilities. Comparable marketplace-style origination model though with a stronger emphasis on secured business loans than pure invoice discounting.
• Tide: UK digital business banking platform serving SMEs that has expanded into integrated lending and working capital products. Adjacent competitor — not an invoice marketplace, but competes for the same SME fintech wallet.

Broad incumbents

• Bibby Financial Services: One of the largest UK invoice finance and factoring providers with a global footprint. Represents the traditional, slower-moving incumbent model that ClearFactor's digital marketplace is built to disrupt.
• HSBC Invoice Finance (now HSBC Innovation Banking UK): Large incumbent invoice finance arm of HSBC providing receivables financing to UK SMEs. Provides the legacy scale and trust that ClearFactor must compete against for SME wallet share.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

• Xx.com/clear_factor

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about ClearFactor