Aldermore is weighing redundancies and planning an Aldermore invoice finance exit as it consults on shrinking the division ahead of a potential sale of the Reading-headquartered lender, City AM has reported. The bank is understood to be discussing cutting its customer base from roughly 500 to around 100 by axing clients below a minimum £1m financing line, with what one source described as a “slow market exit” planned for remaining customers whose contracts the bank does not intend to renew.
A source close to the firm confirmed that some roles within the invoice finance business line may be at risk of redundancy as part of the consultation now under way. The number of roles that could be affected has not yet been disclosed. An offshoring campaign within the division is also being considered as a means of maximising revenue while the business is wound down.
Aldermore invoice finance exit: what the numbers show
Invoice finance has never been a large contributor to Aldermore’s overall revenues. In its last financial year, fees from the division generated £3.2m, broadly flat with the £3.3m recorded in the year prior. The business line allows companies to borrow against unpaid customer invoices as collateral, a form of working capital finance widely used by smaller businesses managing cash flow.
A source close to the firm said the invoice finance consultation was part of a standard model review and did not relate to any potential sale of Aldermore. In a statement, an Aldermore spokesperson 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.’
Sale process draws in Nationwide, Lloyds and Warburg Pincus
The invoice finance changes come as Aldermore faces a broader moment of uncertainty. Its parent company, South African lender FirstRand, put the bank up for sale earlier this year following mounting controversy over the motor finance mis-selling saga. Aldermore booked a £51.2m profit for the year ending June 2026, down 74 per cent from the previous period, after setting aside £187.7m for a potential motor finance redress scheme. FirstRand has described the City regulator’s redress scheme, which could cost the industry just over £9bn, as “disproportionate and unfair.”
According to its investor pages, Aldermore Bank operates as part of two entities within the FirstRand Group: Aldermore Bank plc and MotoNovo Finance Limited. FirstRand itself is the largest financial services group in Africa by market capitalisation, which underscores how much weight the motor finance liability carries for a parent whose core business lies elsewhere.
The sale of Aldermore has drawn interest from a number of well-known financial institutions. City AM has reported that Nationwide and Investec are weighing bids for the bank, joining Lloyds and private equity firm Warburg Pincus in a process that has attracted some of the more prominent names in UK financial services.
Whether Aldermore’s move to trim its invoice finance book is purely a product decision or quietly tidies the business for a buyer, the immediate consequence for the roughly 400 clients below the £1m threshold is plain: they will need to find alternative financing arrangements as the lender prepares to step back from the market. Aldermore said it would work closely with affected customers and intermediaries to guide them through the process.
