Fractional CFO Cost in the UK

The Complete UK Guide to Fractional CFO Costs

1. Introduction: Why This Matters for UK Businesses

In today’s competitive and fast-moving UK business landscape, organisations — especially start-ups, SMEs and growth-stage companies — are increasingly choosing fractional CFOs as a strategic option for senior financial leadership. A fractional CFO provides deep financial expertise without the long-term costs and commitments of a full-time executive, and FD Capital specialises in connecting organisations with the right CFO or FD talent on this flexible basis.

This guide explains:

• What a fractional CFO is,

• How much they cost in the UK,

• The key factors that affect pricing,

• How FD Capital positions and supports this service,

• Realistic cost ranges for London vs other UK regions,

• Practical insights on budgeting and selecting the right model.

2. What Exactly is a Fractional CFO?

A fractional CFO is a senior financial professional — often with decades of board-level experience — who works with a company on a part-time, interim, or project basis. Their role mirrors that of a full-time CFO but firms only pay for the hours or services they need.

Core responsibilities include:

• Strategic financial planning and forecasting

• Cash flow and working capital management

• Financial reporting and KPI oversight

• Risk management and compliance

• Assistance with fundraising, investor relations

• M&A preparation or due diligence

What sets fractional CFOs apart is flexibility: they can scale involvement up or down as a business grows — a model that FD Capital explicitly supports by matching clients to the right individuals.

3. Pricing Models in the UK: How CFO Costs Are Structured

Fractional CFOs in the UK — including those placed through FD Capital — typically work under one of the following pricing models:

A. Hourly Rates

This structure is ideal for ad-hoc work such as financial review sessions, strategic advice sessions, or occasional board prep.

Typical UK hourly rate ranges:

• £100 – £300 per hour, depending on experience and task complexity.

B. Daily Rates

A very common structure for more intensive support without long-term commitment.

Typical range:

• £700 – £1,800+ per day, based on seniority and region.

FD Capital placements frequently reflect this, with many fractional CFO roles asking for £800 – £1,000 per day for 2–3 days per week in PE-backed businesses.

Our pricing model is simple and straightforward we charge £200 per day on top of whatever the contractors rate is.

C. Monthly Retainers

Useful for ongoing advisory and consistent strategic involvement, usually with a set number of hours each month.

Typical UK monthly retainers:

• £2,000 – £10,000+ per month, depending on scope and hours.

D. Project-Based Fees

For discrete initiatives — e.g., restructurings, system implementations, fundraising rounds — fractional CFOs may charge a flat project fee.

Ranges tend to be:

• £5,000 – £50,000+, depending on complexity and duration.

E. Hybrid or Equity Models

In some early-stage cases, especially technology start-ups, CFO compensation may include a combination of fees and equity. This is less common in SMEs but can be negotiated for strategic alignment with growth outcomes.

4. UK Cost Benchmarks: London vs. Rest of the UK

Costs vary significantly between London — the UK’s capital and financial hub — and other regions. This is true across CFO placements and is reflected in FD Capital’s approach.

A. London

• Daily rates: ~£900 – £1,800+ per day.

• Retainers: ~£3,000 – £10,000+ per month.

• Project fees: ~£10,000 – £50,000+.

Higher costs reflect:

• Stronger demand for premium financial talent,

• Higher costs of living and doing business,

• Greater complexity in capital-intensive sectors (tech, fintech, private equity).

B. Rest of the UK

• Daily rates: ~£700 – £1,200 per day.

• Retainers: ~£2,000 – £7,000+ per month.

• Project fees: ~£5,000 – £30,000.

Regional markets often give you very similar expertise at a lower overall cost, especially for SMEs or companies outside of London’s financial sector.

5. Value Drivers: What Influences Fractional CFO Costs

Prices are not arbitrary — they reflect a combination of:

1. Experience Level

Senior CFOs with strong backgrounds in:

• Private equity,

• Fundraising,

• Scale-ups,

• Complex financial environments
  … command higher rates.

FD Capital’s talent pool includes both experienced executive CFOs and those with niche industry expertise.

2. Scope of Work

A CFO focused on basic reporting and cash management will typically cost less than one tasked with strategic planning, capital raises, or M&A preparation.

3. Time Commitment

More hours or days per month increase total costs — but can reduce effective hourly fees under a retainer.

4. Industry Complexity

Sector-specific expertise commands premiums (e.g., fintech, healthcare, high-growth SaaS).

5. Region

London command premiums due to concentrated demand and higher operating costs.

6. Duration

Shorter engagements (interim or crisis support) sometimes command higher day rates but compared to long retainers may be cost-effective overall.

6. FD Capital’s Approach to Cost Transparency

FD Capital’s market positioning emphasises transparent matching between business needs and CFO expertise, rather than a one-size-fits-all pricing. Their focus is on recruitment — placing the right financial expert based on your company’s size, sector, and strategic needs.

They serve:

• SMEs, start-ups and scale-ups,

• PE-backed and VC-backed companies,

• Organisations needing interim support,

• Firms preparing for growth events or transformation.

Their talent pool spans London, the South East, and the West Midlands, backed by ICAEW/FCA qualified professionals.

7. Comparing Fractional vs Full-Time CFO Costs in the UK

To truly appreciate the fractional model’s value, contrast it with full-time executive costs.

Full-Time CFO Typical Costs

• Salary: £120,000 – £220,000+ per year.

• Benefits & payroll taxes: +20%–30%.

• Recruitment fees: often significant, especially for senior hires.

In comparison, a fractional CFO:

• Offers strategic expertise without benefits or pensions.

• Often pays only for hours needed.

• Can be engaged on flexible terms.

This can mean savings of tens of thousands per year while gaining access to equal or superior financial leadership.

8. Real-World Examples (Hypothetical)

Case: Tech Start-Up in London

Need: Fundraising readiness and investor modelling
Engagement: 20 hrs/month
Cost: ~£3,500 – £6,000/month retainer
Outcome: Clear financial model + successful seed raise

Case: PE-Backed Services Firm (UK)

Need: Strategic financial governance + cash forecasting
Engagement: 3 days/month @ £900–£1,000/day
Cost: ~£2,700 – £3,000/month
Outcome: Improved KPI reporting + smoother board communications

Case: Regional Manufacturing Company

Need: Cost control and financial reporting improvement
Engagement: 40 hrs over 3 months as a project
Cost: ~£8,000–£12,000
Outcome: 15% operating cost improvement

These examples mirror typical scenarios for FD Capital placements and UK market patterns.

9. Key Questions to Ask Before Hiring

Before engaging a fractional CFO, consider:

1. Scope: What strategic goals do you need them to achieve?

2. Hours Required: What’s your realistic monthly time demand?

3. Budget: What’s your total budget envelope?

4. Expertise Level: Do you need niche sector experience?

5. Engagement Length: Short project vs ongoing advisory?

10. Budgeting and ROI Considerations

Fractional CFOs are an investment — but the goal is ROI through better decisions, not a cost centre.

ROI drivers include:

• Faster fundraising rounds,

• Better cash management,

• Stronger profitability planning,

• Reduced financial risk,

• Improved stakeholder confidence.

A fractional CFO’s involvement can pay for itself through operational efficiencies and strategic execution.

11. Summary & Practical Takeaways

• Fractional CFOs deliver full-CFO value with flexible engagement and competitive pricing.

• UK costs vary widely: London commands a premium, but high-quality talent is available across the UK.

• FD Capital matches businesses with the right CFO based on experience, commitment and sector fit.

• Costs span hourly / daily / monthly / project structures — choose the model aligned with your strategic needs.