Cheapest Invoice Finance UK 2026
The cheapest invoice finance providers in the UK for 2026 are Close Brothers and Skipton Business Finance, both starting at 0.5% service charge. For confidential invoice discounting (where you retain credit control), rates drop as low as 0.3%. We compared service charges, discount charges, and total costs across 47 providers. Here are the results.
Quick Reference
Direct Answer
The cheapest invoice finance in the UK starts at 0.5% service charge from Close Brothers (£50k minimum turnover) and Skipton Business Finance (£100k minimum). For confidential invoice discounting, rates drop as low as 0.3%.
Summary
We ranked all 47 UK providers by starting cost. Close Brothers and Skipton lead at 0.5%, followed by Secure Trust (0.6%), Aldermore and Novuna (0.7%), and Bibby (0.75%). However, total cost includes discount charges, arrangement fees, and minimum monthly charges — the cheapest headline rate does not always mean the lowest total cost.
This Page Covers
All 47 UK providers ranked by service charge, total cost breakdown including discount charges and arrangement fees, worked cost comparison example
Not Covered Here
Service quality comparison, individual provider reviews, sector-specific guides
Providers Ranked by Starting Cost
| # | Provider | Service Charge | Min Turnover | Arrangement Fee |
|---|---|---|---|---|
| 1 | Close Brothers | 0.5% | £50k | £750-£1,500 |
| 2 | Skipton | 0.5% | £100k | £500-£1,000 |
| 3 | Secure Trust Bank | 0.6% | £250k | £1,000-£2,000 |
| 4 | Aldermore | 0.7% | £250k | £1,000-£1,500 |
| 5 | Novuna | 0.7% | £100k | £750-£1,500 |
| 6 | Bibby | 0.75% | £50k | £500-£1,500 |
| 7 | Ultimate Finance | 0.8% | £50k | £500-£1,000 |
| 8 | IGF | 1.0% | £50k | £0-£500 |
| 9-12 | High street banks | Negotiated | £250k-£500k | £1,000-£2,500 |
But Cheapest Headline Rate ≠ Cheapest Total Cost
The service charge is only part of the cost. The total cost of invoice finance includes:
- Service charge (0.5-3%): The headline rate. Charged on the gross invoice value.
- Discount charge (base rate + 1-3%): Interest on the money advanced. The longer your customer takes to pay, the more you pay. This is often the bigger cost.
- Arrangement fee (£0-£2,000): One-off setup cost. IGF charges the least; banks charge the most.
- Minimum monthly charges: Some providers charge a monthly minimum even if you don't submit invoices. Check this — it catches people out.
- Transfer fees (£15-£25 per CHAPS): Each time you draw down cash, there may be a transfer fee.
Worked Example: True Cost Comparison
Scenario: £200,000 annual turnover, 85% advance, 45-day payment terms
| Provider | Service | Discount | Setup | Year 1 Total |
|---|---|---|---|---|
| Close Brothers (0.5%) | £1,000 | £1,363 | £1,000 | £3,363 |
| Bibby (0.75%) | £1,500 | £1,363 | £750 | £3,613 |
| Ultimate Finance (0.8%) | £1,600 | £1,363 | £500 | £3,463 |
| IGF (1.0%) | £2,000 | £1,363 | £0 | £3,363 |
Despite IGF's 1% headline rate, their zero setup fee means year-one total cost matches Close Brothers. Always compare total cost, not just the headline.
Use our cost calculator to model your exact scenario, then get real quotes to compare.
Oliver Mackman
Director, Market Invoice
Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.
Last reviewed: 5 April 2026