Market Invoice compares the UK providers that fit this need, and you can get 3 free quotes through eCapital, our introduction partner. Government contractors get the best invoice finance rates in the UK because government, council, and NHS debtors have near-zero default risk. The providers compared below all accept government and public-sector invoices. Neither Skipton Business Finance nor Close Brothers publishes a rate: both price each facility individually. Advance rates of 90-95% are standard. If you supply to government, you're in the strongest possible negotiating position.
Government contractors get the best rates because government debtors have near-zero default risk. Neither Skipton Business Finance nor Close Brothers publishes a rate: both price each facility individually. The providers compared below all accept government invoices. More detail + scope
This page covers
Best invoice finance rates for government contractors, council suppliers, and public sector businesses
Not covered here
Government procurement processes, tender writing, specific contract requirements
Best Rates for Government Invoices
| Provider | Fee From | Advance Rate | Min Turnover | Gov Accepted |
|---|---|---|---|---|
| MarketInvoice3 free quotes | Not a lender or a panel. Tell us about your business and eCapital, our introduction partner, handles your enquiry and comes back to you with quotes. Free to you: eCapital pays us a fixed fee per introduction. | |||
| Close Brothers | Not published | Up to 90% | £750k | Yes |
| Skipton | Not published | Up to 90% | £100k | Yes |
| Bibby | Not published | Up to 90% | Not published | Yes |
| Ultimate Finance | Not published | Up to 95% | Not published | Yes |
| IGF | Not published | Up to 90% | £5m | Yes |
Why Government Debtors Get the Best Deal
Invoice finance pricing is driven by debtor risk. Government bodies - central government departments, local councils, NHS trusts, MOD - are the safest debtors in the UK. They always pay. This means providers compete aggressively for government contractor business, offering the lowest fees and highest advance rates. If most of your invoices are to government, you should be paying the absolute minimum rate in the market.
Types of Government Debtors
All of the following are treated as zero-risk or near-zero-risk by invoice finance providers: central government departments, local councils, NHS trusts, NHS England, MOD, police forces, fire services, education authorities, and government-funded agencies. If your invoices are to any of these bodies, you qualify for the best rates.
Even mixed ledgers benefit - if 50% of your invoices are government and 50% private sector, providers will often price the whole facility more competitively because the government portion de-risks the book.
Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.
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