Hitachi Capital Invoice Finance Review 2019

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Release up to 90% of the value of your unpaid invoices, and unlock faster growth for your business


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Pros:

  • Friendly and helpful customer service team
  • Supports businesses of many sizes
  • Has experience working with businesses across a wide range of sectors and industries
  • No hidden fees, extras, or setup costs
  • Six-month trial period and rolling contracts available

X Cons:

  • Only available for B2B businesses
  • You’ll need to have a minimum turnover of £50,000 per year to be eligible
At a glance: With flexible options for finance and a friendly, experienced team, Hitachi Capital is an excellent choice for fast funding. However, businesses with more modest turnovers may have to look elsewhere.

Hitachi Capital provides invoice finance for more than 700 businesses across the UK. Located in Shropshire, and with entirely UK-based customer support, Hitachi Capital offers a personalised service and a range of cash flow solutions for small businesses.

But what exactly do these services entail? Is Hitachi Capital invoice finance right for the unique needs of your business, and what benefits could it bring? 

Read on to find out.

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What are Hitachi Capital’s services and benefits?

Hitachi Capital offers a variety of flexible ways to improve your business’ cash flow, and reduce those long waits between payments. These options all involve some form of invoice finance quick, simple funding for your business, leveraged against your unpaid invoices.

Let’s find out which of Hitachi Capital’s funding options is right for you.

Invoice factoring

Invoice factoring is one of the quickest, most hassle-free, least hands-on forms of business finance you’ll ever come across. So how does it work? 

Well, you let Hitachi Capital’s team know as soon as you’ve invoiced one of your customers. Hitachi Capital then sends you up to 90% of your invoice’s value upfront, and takes a service fee. 

Hitachi Capital is then responsible for pursuing payment, and your customer will settle the deficit directly with Hitachi’s invoice finance team. When the full amount is paid, you’ll see the remaining 10% of the invoice’s value in your account. Simple!

What’s great about invoice factoring is that it’s not only quick finance that’s provided you also get the services of Hitachi Capital’s credit control team. They’ll chase your payments for you, allowing you the freedom to get on with growing your business.

You’ll need an annual turnover of £50,000 to be eligible for Hitachi Capital’s invoice factoring service.

Invoice discounting

Invoice discounting is similar to factoring, with one key difference it’s all confidential. Unlike with a factoring deal, your customers will be blissfully unaware that you’re using third-party finance. 

You’ll also remain in complete control of your own credit control. That means you’re still in charge of chasing your own payments, and managing your own relationships with your customers. 

The only catch? You’ll need a minimum annual turnover of at least £250,000 to be eligible for Hitachi Capital invoice discounting, making it less feasible for smaller businesses.

Recruitment finance

Hitachi Capital’s ‘Payroll Finance’ is a cloud-based invoice finance solution built specifically for the needs of recruitment agencies. It’s essentially an online platform that combines payroll and time management with invoice finance for recruiters. 

As well as relieving a big chunk of your admin load, this innovative solution also gives you access to real-time reporting. Get all the figures and forecasts that matter most to your business, at your fingertips from anywhere in the world.

Credit protection

It’s the elephant in the room. What happens if your customers can’t (or won’t) pay? Sadly, it’s a risk faced by the majority of UK businesses. But luckily, there’s a way to soften the impact that bad or unpaid debts can have on your business. 

It’s called credit protection. Essentially, it means that Hitachi Capital takes responsibility for up to 90% of a particular debt you’re owed. Then, if your customer doesn’t pay for a prolonged period (or becomes insolvent), you won’t be left out of pocket.

Hitachi Capital will also work with you to help you understand where there’s any potential for bad debt within your ledger, and maximise your degree of protection. It’s a good service but, like most of the best services, it won’t come cheap. 

Let’s find out what costs are involved. 


How much does Hitachi Capital invoice finance cost?

Like most invoice finance companies, Hitachi Capital doesn’t advertise its exact prices online

And, while this can be frustrating, it’s understandable all of Hitachi Capital’s prices are bespoke. What you can expect to pay will depend on the size of your business, your annual turnover, and how long you’ve been trading for.

That said, you can expect to pay a single fee of 0.45% to 5% of your turnover, per year (depending on the size of your business). Though this fee seems a bit nebulous, you can still be safe in the knowledge that Hitachi Capital charges no hidden fees, no set up costs, and zero niggly, unforeseen extras. 

Adam and the calculator

hitachi capital chatbot conversationWe turned to Adam (pictured), a chatbot on Hitachi Capital’s website, to see if he (it?) could give us more specific info around Hitachi Capital’s prices. 

But it was no dice you’ll need to provide details about you and your business before any costs enter into the conversation. 

That’s the bad news that we couldn’t charm our way past a chatbot.

The good news, though, is that Hitachi Capital provides an invoice finance calculator on its website. To use it, you’ll need to answer three questions:

  • What is your annual sales turnover? 
  • What is the amount you’d like to release from each invoice?
  • What is the average length of time it takes your customers to pay you?

Hitachi Capital does the maths, and will give you a rough idea of how much an invoice finance deal will cost you over the course of a year. We gave it a go, to provide a few examples:

Sales turnoverAmount you’d like released per invoiceAverage payment length

Estimated annual cost

£50,00080%30 days£1,931
£100,00085%60 days£4,268
£200,00090%90 days£7,330
£200,00090%120 days£8,107

You can choose to release any amount between 10% and 90% of the value of each of your invoices. However, you’ll need to have a minimum turnover of at least £50,000 to be eligible.

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Is Hitachi Capital invoice finance right for my business?

I run a B2B startup with a turnover of around £50,000, and I need a quick cash injection.

Sounds like you’re tailor made for Hitachi Capital’s invoice factoring solution. You’ll receive a quick cash hit of up to 90% of your invoice’s value, and can relax knowing that Hitachi’s team are doing the legwork of chasing payment.

I only sell directly to consumers, not other businesses. Am I eligible?

Unfortunately not Hitachi Capital only finances invoices for B2B transactions. This is standard across most invoice finance providers, so B2C businesses should look to other forms of funding, such as an overdraft or a business loan.

I want finance, but want to retain control over my own client relationships.

A straightforward invoice discounting deal should do the trick. Your customers won’t know you’re receiving finance, and you’ll still be in charge of collecting repayments. You’ll just need to make sure you’re turning over at least £250,000 to be eligible. 

I’ve just started out in business, and have a turnover of £20,000. Can Hitachi Capital help?

Unfortunately, no. Hitachi Capital Invoice Finance only work with businesses turning over at least £50,000 annually. You might be better served by Optimum Finance, who specialise in bespoke invoice finance solutions for small businesses across the UK.

I suffer a lot from prolonged late payments, and often have invoices go unpaid.

Add credit protection to the invoice finance deal you select. It’ll help mitigate the loss involved with late or unpaid payments, and cushion the blow if any of your customers become insolvent.

I run a recruitment agency with lots of remote workers. What can Hitachi Capital do for me?

Try Hitachi Capital’s ‘Payroll Finance’ solution. Its software helps you manage payroll, and provides invoice finance that’s tailored to the lofty demands of your industry. 

And because the software is all cloud-based, you and your team can access it from anywhere with an internet connection helping everyone stay on the same page.


What do Hitachi Capital’s customer reviews say?

Hitachi Capital has pretty good reviews across the board. Reviewers love the speed and efficiency of the service, and how easy it is to get set up. 

Online reviewers are less impressed, though, with what they feel is a service that doesn’t quite match up to what was promised. This seems to be a recurring theme across the reviews we found, with one reviewer commenting “we have not received the product we were sold.” Another simply writes that Hitachi Capital was “not as good as I was made to believe.”

Despite this, Hitachi Capital has picked up a lot of five-star reviews, and the friendliness and service of the staff is almost always praised. We picked out a couple of reviews for your consideration.

“Second to none” (5 stars)

“We have been extraordinarily pleased with Hitachi. After working with other providers (and the usual high cost/poor customer service that entails), Hitachi Capital has truly been a breath of fresh air.

“From sales, all the way to implementation and maintenance, I am yet to discover an invoice finance provider that can meet or exceed the fantastic customer service, cost, and efficiency of Hitachi.”

“Not exactly as promised” (3 stars)

“We joined Hitachi just over a month ago, and the setup has not been without its issues. It seems that the different departments don’t communicate with each other effectively. 

“In addition, our dedicated Relationship Manager has left, and we’re now having to communicate with a generic email address. This isn’t what we were promised. On the plus side, most people I’ve dealt with have been extremely helpful.”

Source: Feefo


Expert verdict

If you’re a business with a turnover of at least £50,000 and you need a quick, convenient form of finance, then Hitachi Capital is for you. Its factoring services seem affordable, come with strong customer service, and are backed by a highly recognisable brand name. 

However, Hitachi Capital’s turnover eligibility limits might exclude smaller companies from benefiting from some of its services. You’ll need to be making at least a quarter of a million a year, for example, to use its confidential invoice discounting services which might make it harder to maintain those all-important relationships with your clientele. 

And if you sell solely to private clients (B2C) rather than businesses, forget about it Hitachi Capital only funds invoices from business-to-business (B2B) transactions.

With all that in mind, it’s best to compare multiple suppliers before settling on the one that’s right for you. That’s where we can help! Simply complete our free quote-finding form with a few details about your business. It takes about a minute, and you’ll receive quotes from multiple invoice finance providers who can cater to your unique needs. 

Try it now, or read on for some of the alternative invoice finance services you could consider.


What other invoice finance services should I consider?

Not quite sold on Hitachi Capital? Dive into the table below to browse our reviews of other top UK invoice finance providers. 

Invoice finance providerOur ratingOur review
Ashley Business FinanceRead review
Barclays Invoice FinancingRead review
Optimum FinanceRead review
RBS FacFlow Invoice FinanceRead review
Skipton Business FinanceRead review

Save by Comparing Invoice Factoring Quotes from Leading Suppliers

Have you used Invoice Factoring before?

Rob Binns Writer

Rob writes mainly about the payments industry, but also brings industry-specific knowledge of CRM software, social media monitoring, and invoice finance. When not exasperating his editor with bad puns, he can be found relaxing in a sunny corner, with a beer and a battered copy of Dostoevsky.

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