The Time Finance takeover has been announced: Time Finance, the AIM-listed alternative lender, has agreed a £55m deal that, according to trade press reports, involves the group that owns Bristol-based specialist lender Ultimate Finance. For the thousands of UK small and medium businesses that rely on Time Finance for asset finance and invoice finance, the immediate question is simple: does anything change for my facility, and should I be shopping around?
The short answer is that a change of ownership at your lender does not, by itself, alter the terms of an agreement you have already signed. The same holds for other financial suppliers changing hands, as we noted when Redsquid’s acquisition of ARK ICT raised similar questions for IT support customers. Your existing contract, your rates and your drawdown limits stand until the agreement runs its course or is renewed. If you are shopping around anyway, it is worth comparing against options such as Recognise Bank’s five-year fixed commercial mortgage for SMEs buying premises. But a deal of this size is a good prompt to check what you are paying, understand who you will be dealing with next, and know what else is on the market, including lenders like Funding Circle’s newly expanded £500m SME loan fund, such as alternative SME lenders now expanding their loan books. This piece explains the deal in plain English and sets out the practical steps for any business owner with a facility affected. If you’re comparing lenders, our coverage of Recognise Bank’s fixed commercial mortgage launch is a useful benchmark.
What has actually been announced
According to the wire report from Proactive Investors, Time Finance has agreed to a takeover valuing the company at around £55m, reportedly by the group that owns Ultimate Finance. Time Finance is a diversified lender that provides asset finance (funding to buy equipment, plant and vehicles), invoice finance (borrowing against unpaid invoices), similar in spirit to the five-year fixed commercial mortgage option for SMEs buying premises, commercial loans and vehicle finance to UK SMEs, alongside newer options such as Recognise Bank’s five-year fixed commercial mortgage. Ultimate Finance is a well-established specialist lender in a similar space, not unlike the fixed-rate options detailed in our coverage of Recognise Bank’s five-year fixed commercial mortgage, so this would be a consolidation of two providers that already compete for the same customers. If the ownership detail matters to you, confirm it against the filed documents rather than press summaries, and if you’re weighing wider borrowing options see our guide on refinancing a commercial property.
As with any public company takeover, the deal is subject to the usual approvals: shareholder agreement and any regulatory sign-off required before it completes. Until it does, both businesses continue to trade as normal. Businesses comparing lenders may also want to see how Recognise Bank’s five-year fixed commercial mortgage stacks up. Announcements of this kind are filed with the market and, once the corporate structure changes, will be reflected on the register at Companies House, which is worth searching if you want to see who ultimately owns the firm lending to you.
What it means if you already have a facility
The first thing to understand is that a signed finance agreement is a contract. A change of owner does not let a lender quietly rewrite your rate or pull your funding early. Your terms are your terms. In practice, the more likely changes are slower and more mundane:
- New branding and logins. Portals, statements and email addresses may change over time as systems are merged. Watch out for this, because fraudsters exploit exactly these moments. If you get a message telling you to update bank details for repayments, verify it by phoning a number you already trust, not one in the email.
- Different account managers. The person you speak to may change. Note who your new contact is and keep their direct details.
- Renewal terms. The real test comes when your facility is up for renewal. A combined, larger lender may price differently, tighten or loosen criteria, or change appetite for certain sectors. That is the moment to compare, not the moment the deal is announced.
For invoice finance in particular, the mechanics matter. If your customers currently pay into a trust account or make payments to a specific reference, do not change anything until you have written confirmation from the lender. Getting this wrong can delay cash reaching your account.
Why lenders keep merging, and why it matters to you
Consolidation in SME lending has been a running theme. Funding costs, regulation and the expense of running compliant systems all reward scale. We saw the same appetite for growth capital when Funding Circle secured £500m from Castlelake to fund more SME loans. Bigger lenders can, in theory, offer keener pricing and a broader product range. The trade-off is that fewer independent players can mean less choice and, sometimes, less flexibility for unusual cases that a smaller lender might have taken a view on.
None of that is a reason to panic. It is a reason to treat your finance the way you would treat your business energy or insurance: as something to review on a schedule rather than leave on autopilot. If you are also weighing up borrowing against property, our guide to how to refinance a commercial property covers the same review discipline for a different facility.
Asset and invoice finance: who else is on the market
If the takeover has prompted you to look around, here is a shortlist of UK providers active in asset finance, invoice finance or both. It deliberately includes challengers and specialists alongside the familiar names, because the useful half of any comparison is the firms you had not already thought of. Always confirm current terms directly, as pricing and appetite change.
| Provider | Main strengths | Typically suits |
|---|---|---|
| Time Finance | Multi-product: asset, invoice, loans, vehicle finance under one roof | SMEs wanting a single lender across several needs |
| Ultimate Finance | Specialist invoice and asset finance, established SME focus | Businesses funding growth or bridging cash flow gaps |
| Bibby Financial Services | One of the larger independent invoice finance providers | Firms in trade, manufacturing and recruitment |
| Novuna Business Finance | Asset finance backed by a substantial parent group | Equipment and vehicle purchases |
| Optimum Finance | Challenger invoice finance provider focused on smaller firms | Newer or smaller businesses often overlooked by big lenders |
| Nucleus Commercial Finance | Flexible business lending and cash flow products | SMEs wanting alternatives to a high-street bank |
| Kriya | Digital-first invoice finance and B2B payment tools | Businesses that want fast, online-led funding |
Larger banks such as Aldermore, Close Brothers and Shawbrook are also worth a quote if you want a broader banking relationship alongside your facility. A whole-of-market commercial finance broker can gather several offers at once, though check any fee before you engage one.
How to read the costs
Asset and invoice finance are not priced like a simple loan, which is where owners often lose money. With invoice finance, you usually pay two things: a service fee (a percentage of turnover for running the facility) and a discount charge (interest on the money you draw, usually linked to the Bank of England base rate). With asset finance, the headline is the flat monthly payment, but the number that matters is the total cost of credit over the term and any balloon payment at the end.
When you compare providers, put every quote into the same shape: what you pay per month, what you pay in total, and what happens at renewal or termination. Ask specifically about termination notice periods on invoice finance, because a long notice period can lock you in even after you have found a better deal. Cash flow is the reason most SMEs use these products in the first place, and the biggest drag on cash flow is often not the finance cost but customers paying late. Our look at why the UK’s biggest firms are the worst payers sets out how to push back before you borrow to cover the gap.
Frequently asked questions
Will my Time Finance rate change because of the takeover?
No, not on an agreement you have already signed. Your contracted terms stand until the facility ends or comes up for renewal. Any change to pricing would apply at renewal, which is the point to compare the market.
Do I need to do anything now?
Nothing urgent. Keep paying and operating as normal. It is sensible to note your renewal date, keep a copy of your current terms, and be alert to any messages asking you to change payment or bank details, which you should always verify by phone.
Could my facility be withdrawn?
A change of ownership does not give a lender grounds to cancel a valid, performing agreement. Facilities are more likely to be affected at renewal, or if your own trading position changes. If in doubt, ask your account manager to confirm your facility status in writing.
Is a bigger lender good or bad news for borrowers?
It can be either. Scale can bring keener pricing and a wider product range. It can also mean less flexibility on unusual cases. The honest answer is that you find out at renewal, which is why comparing quotes then matters more than reacting to the announcement now.
Where can I check who owns my lender?
Once the deal completes, the ownership structure will be visible on the Companies House register. For a listed company like Time Finance, market announcements also set out the terms of the acquisition.
What to do next
- Find your paperwork. Locate your current agreement, note the renewal date, the total cost of credit, and any termination notice period.
- Confirm your contacts. Check who your account manager is and keep verified phone numbers, so you can spot any fraudulent request to change payment details.
- Get two or three comparison quotes. Approach a mix of established and challenger providers from the shortlist above, and put every offer into the same monthly and total-cost format before deciding.
- Check the detail for yourself. Look up the coverage from Proactive Investors and search the Companies House register for Time Finance’s filings, so you understand who you will be dealing with.
