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Get my 3 quotes →Market Invoice compares the UK providers that fit this need, and you can get 3 free quotes through eCapital, our introduction partner. None of the mainstream lenders compared here publishes a starting service charge: Skipton Business Finance, Close Brothers, Bibby, Aldermore, Novuna, Ultimate Finance, IGF and the high street banks all quote per facility. We compared service charges, discount charges and total costs across the providers with published terms. Here are the results.
Total cost also depends on the discount charge and any arrangement or minimum fees, so compare quotes on total cost, not the headline rate. More detail + scope
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
Mainstream Providers on Published Terms
| # | Provider | Service charge | Min turnover | Advance rate | Setup |
|---|---|---|---|---|---|
| 1 | Skipton | Not published (quoted per facility) | £100k | Up to 90% | 5 working days |
| 2 | Close Brothers | Not published (quoted per facility) | £750k | Up to 90% | 5 working days |
| 3 | Bibby | Not published (quoted per facility) | Not published | Up to 85% | 5 working days |
| 4 | Aldermore | Not published (quoted per facility) | £750k | Up to 90% | A few days to a few weeks |
| 5 | Novuna | Not published (quoted per facility) | Not published | Up to 90% | 1 to 3 working days to funds |
| 6 | Ultimate Finance | Quoted per facility (not published) | Not published | Up to 95% | Within one week (up to 5 working days) |
| 7 | IGF | Bespoke pricing | £5m | Up to 90% receivables + stock + plant | 10 working days |
Minimum turnover, advance rate and setup speed come from the provider's published criteria as recorded in our provider index. Most UK funders do not publish a rate card, so a starting service charge is our research estimate for a lowest-risk profile, not a quoted price.
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banks (HSBC, Lloyds, NatWest, Barclays) price invoice finance by negotiation, typically bundled with wider banking, and do not publish standard rates.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 (most providers quote it per facility): 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: One-off setup cost. It varies by provider and is sometimes waived, so ask for it in writing.
- Minimum monthly charges: Some providers charge a monthly minimum even if you don't submit invoices. Check this - it catches people out.
- Transfer fees: Each time you draw down cash, there may be a per-transfer fee (for example on CHAPS payments).
Illustrative Example: True Cost Comparison
Hypothetical scenario: £200,000 annual turnover, 85% advance, 45-day payment terms
Providers A to D and their fees are made up to show how the pieces add up; they are not quotes from named providers. Discount charge in every row: about £20,959 drawn on average (£200,000 x 85% x 45/365) at 6.5% a year (base rate 3.75% plus 2.75%) = £1,362.
| Provider | Service | Discount | Setup | Year 1 Total |
|---|---|---|---|---|
| Provider A (0.5%) | £1,000 | £1,362 | £1,000 | £3,362 |
| Provider B (0.75%) | £1,500 | £1,362 | £750 | £3,612 |
| Provider C (0.8%) | £1,600 | £1,362 | £500 | £3,462 |
| Provider D (1.0%) | £2,000 | £1,362 | £0 | £3,362 |
Despite Provider D's 1% headline rate, its zero setup fee means its year-one total matches Provider A's. 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.
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