UK · Decision guide · Finance Director
Fractional FD vs Full-Time Finance Director
The short answer
For most UK businesses under roughly £10M in turnover, a fractional FD is the correct choice: you get senior financial leadership for £24,000–£60,000 a year instead of the £90,000–£160,000 all-in cost of a full-time hire. A full-time Finance Director becomes the right call once finance is a daily, full-workload function — typically past £10–15M in turnover, with a finance team to lead, multiple entities, or a sale or major raise in progress.
Fractional FD vs Full-Time Finance Director — side by side
| Dimension | Fractional FD | Full-Time Finance Director |
|---|---|---|
| Annual cost | £24,000–£60,000 (fixed monthly retainer) | £90,000–£160,000 all-in (salary, bonus, employer NI, pension, benefits) |
| Time to start | Days — engagement scoped and live within a week | 3–6 months to search, recruit and onboard |
| Seniority of the work | Senior throughout — you engage the principal directly | Senior — but only as strong as the one person you recruited |
| Scope | The decisions that move the business: forecasting, cash, board reporting, banking, raises | Everything finance, including full-time depth and daily presence |
| Scalability | Scale hours up or down as the business changes | Fixed cost regardless of how heavy the month is |
| Risk if it isn't working | Low — a fixed-term engagement, simple to adjust or end | High — a wrong senior hire is costly, slow and disruptive to unwind |
| Best fit | £1M–£10M turnover; needs judgement, not headcount | £10–15M+ turnover; finance is a daily full-workload function |
When Fractional FD is the right call
Choose a fractional FD when you need FD-grade judgement — forecasting, cash management, board and bank reporting, pricing and margin work — but the volume of that work does not fill a full-time role. This is the reality for the large majority of UK businesses under £10M in turnover. You get the senior thinking without committing to a senior salary plus employer NI and pension, you can start within a week, and if your needs change you adjust the engagement rather than managing a difficult exit. It is also the right answer when you cannot yet attract a strong full-time FD — a credible fractional FD is a genuine upgrade on recruiting a junior one.
When Full-Time Finance Director is the right call
Choose a full-time Finance Director when finance has genuinely become a daily, full-workload function: typically past £10–15M in turnover, with a finance team to manage and develop, multiple trading entities, or a sale or substantial raise in progress that needs someone in the building every day. At that point the full-time cost is justified by the workload, and the daily presence and team leadership matter more than the cost saving. A good fractional FD will tell you when you have crossed that line — and help you recruit and onboard the full-time successor.
The honest verdict
This is a stage question, not a quality question. A fractional FD is not a watered-down FD; it is the same seniority bought in the right quantity for a business that does not yet need it full-time. The mistake is not choosing fractional — it is staying fractional too long, or recruiting full-time too early. For most owner-managed UK businesses, fractional is the correct structure for years, and the move to full-time is a milestone you grow into. BlackpeakCFO delivers fractional FD engagements from £1,995/month, fixed and personally delivered by Stuart Wilson, ACMA CGMA — a chartered management accountant with seven years as a Group Finance Director.
"The question is never 'fractional or full-time'. It's 'how much FD does this business actually need this year' — and for most UK SMEs, the honest answer is: not a whole one."
Stuart Wilson, ACMA CGMA — founder, BlackpeakCFO
Common questions
Is a fractional FD less experienced than a full-time Finance Director?
No — often the opposite. A fractional FD typically brings broad cross-business experience precisely because they have worked across many companies. The difference is quantity of time, not quality of person. With BlackpeakCFO you engage Stuart Wilson, ACMA CGMA, directly — 24 years in finance, seven of them as a Group Finance Director for a portfolio of small and mid-sized London businesses — not a junior operating under a senior title.
At what turnover should I hire a full-time FD?
There is no fixed threshold, but finance usually becomes a full-time function somewhere past £10–15M in turnover — earlier if you have multiple entities, a finance team to manage, or a sale or major raise underway. Below that, a fractional FD almost always delivers the same judgement at a fraction of the cost. The trigger is workload, not turnover for its own sake.
What does a fractional FD cost compared with a full-time hire?
A fractional FD costs roughly £24,000–£60,000 a year as a fixed monthly retainer. BlackpeakCFO's fractional FD service starts from £1,995/month. A full-time UK Finance Director costs £90,000–£160,000 all-in once salary, bonus, employer National Insurance, pension and benefits are counted. For a business that does not yet need finance as a daily function, fractional is a substantial saving for the same level of judgement.
Can a fractional FD help me recruit my eventual full-time FD?
Yes, and a good one will. Part of the fractional role is recognising when you have outgrown it — then writing the job description, setting the salary benchmark, sitting in on interviews and handing over clean systems, forecasts and board packs. The transition should be planned, not abrupt.
Is it risky to rely on a part-time FD for something this important?
The risk runs the other way. A fixed-term fractional engagement is low-risk: it is simple to scope, adjust or end. A wrong full-time senior hire is expensive, slow to unwind and damaging to morale. Fractional lets you secure senior financial leadership immediately, with a clean off-ramp if your needs change.
Related
Not sure which fits your business?
Send your details in a one-minute form. Stuart reads every one personally and will tell you honestly which option fits — even when that means it isn't us. No phone call required.
Talk to a fractional FD →