Aldermore puts jobs at risk in retreat from invoice finance market

Aldermore is weighing a round of layoffs as it consults on plans to scale back its invoice finance business ahead of a sale, City AM can reveal.

The Reading-headquartered lender is discussing plans to shrink its invoice finance division and slash the amount of customers it serves in the market, sources told City AM. 

The firm is looking to axe clients below a minimum £1m financing line, the people said, a move which would cut its customer base to around 100 from roughly 500.

A source said the bank was also not planning to renew the remaining client base to allow for a “slow market exit”.

Businesses use invoice financing as a means to borrow money using unpaid customer invoices as collateral. 

An offshoring campaign is also being mooted in the division in a bid to maximise revenue, the source added. Another source close to the firm confirmed some roles within the invoice finance business line may be at risk of redundancy as part of the consultation. It is not yet known how many roles could be affected.

In its last financial year, invoice finance fees generated £3.2m, broadly flat with £3.3m the year prior. 

Aldermore sale attracts top City names

Aldermore booked a £51.2m profit for the year ending June 2026, down 74 per cent from the previous period. The company set aside £187.7m for a potential motor finance redress scheme after the City regulator said it would force firms to pay compensation for the use of ‘secret’ commission deals between car brokers and lenders, without customer’ knowledge.

Controversies surrounding the car mis-selling saga were the catalyst for Aldermore’s parent company, South African lender Firstrand, to put the firm up for sale earlier this year.

Firstrand said the City watchdog’s car finance redress scheme, which could cost the industry just over £9bn, was “disproportionate and unfair” as it laid out its plans to exit the UK market.

The sale of Aldermore has attracted a number of top financial firms. City AM revealed Nationwide and Investec were weighing bids for the specialist bank. They join the likes of Lloyds and private equity firm Warburg Pincus.

A source close to the firm said the invoice finance consultation was part of standard model review and did not relate to any potential sale.

A spokesperson for Aldermore said: “We’re carrying out a strategic review to ensure our products continue to meet our customers’ needs and align with our long-term strategic priorities. 

“The review is in progress and will be completed imminently. We’ll work closely with impacted colleagues, customers, and intermediaries to guide them through this process.”