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Get matched in 2 minutes →MarketInvoice is the whole-of-market match for this need: we compare every UK provider that fits and route you to the best match in 2 minutes, free. The cheapest published invoice finance rates in the UK for 2026 start at 0.5% service charge, offered by Close Brothers, Skipton Business Finance and Bibby. Several providers, including the high street banks, publish no rate at all and quote per facility. We compared service charges, discount charges and total costs across the providers with published terms. Here are the results.
The cheapest published invoice finance in the UK starts at 0.5% service charge, from Close Brothers (£500k minimum turnover), Skipton Business Finance (£100k) and Bibby (£100k). Total cost also depends on the discount charge and any arrangement or minimum fees. More detail + scope
Summary
We ranked the providers with published starting costs. Close Brothers, Skipton and Bibby lead at 0.5%; Aldermore and Novuna publish 1% to 2.5% bands; Ultimate Finance, IGF and the high street banks quote per facility rather than publishing a rate. 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
Providers ranked by published 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 | Advance rate | Setup |
|---|---|---|---|---|---|
| 1 | Close Brothers | From 0.5% service charge | £500k | Up to 90% | 5 working days |
| 2 | Skipton | 0.5% to 2.5% service charge | £100k | Up to 90% | 5 working days |
| 3 | Bibby | 0.5% to 3% service charge plus discount margin | £100k | Up to 90% | 5 working days |
| 4 | Aldermore | 1% to 2.5% service charge | £750k | Up to 90% | 7 working days |
| 5 | Novuna | 1% to 2.5% service charge | £500k | Up to 90% | 7 working days |
| 6 | Ultimate Finance | Quoted per facility (not published) | Not published | Up to 95% | 3 working days |
| 7 | IGF | Bespoke pricing | £1m | Up to 90% receivables + stock + plant | 10 working days |
As of 2026-07-24. Every figure is taken from the provider's published criteria as recorded in our provider index; where a provider does not publish a figure, the cell says so rather than estimating one.
High street banks (HSBC, Lloyds, NatWest, Barclays) price invoice finance by negotiation, typically bundled with wider banking, and do not publish standard rates.
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.
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.
Last reviewed: 31 July 2026