No, debt factoring is not currently regulated by the Financial Conduct Authority (FCA) in the UK.
Since the invoice financing industry is unregulated, borrowers should ensure that lenders clearly state all of their fees and that their contracts outline clear termination clauses.
Nevertheless, the invoice factoring sector has enforced a clear code of conduct to provide the best possible service for customers.
Regulation of the invoice financing industry would incur regulation costs, which are typically passed on to the customers. This would then cause prices to rise and inhibit business owners from receiving the best financing deals.