Confidential Invoice Discounting
Confidential invoice discounting allows you to access up to 90% of your outstanding invoice value within 24 hours, without your customers knowing you use finance. It is the most common form of invoice finance in the UK, accounting for 85% of the £22.7 billion market, and is available to businesses with annual turnover from £500,000.
Quick Reference
Direct Answer
Confidential invoice discounting means your customers do not know you use finance. The provider never contacts your customers, payments go into a trust account in your company name, and no third-party branding appears on any correspondence.
Summary
Confidential invoice discounting advances up to 90% of invoice value within 24 hours while keeping the arrangement hidden from your customers. It accounts for 85% of the UK's £22.7bn invoice finance market. Requires £500k+ turnover and established credit control processes. Service charges start from 0.3%.
This Page Covers
How confidential invoice discounting works, step-by-step process, best providers (Close Brothers, Aldermore, Skipton, Novuna), eligibility requirements, and who it suits
Not Covered Here
Standard factoring details, full cost breakdowns (see costs guide), individual provider reviews
How It Works
- 1.You raise invoices to your customers as normal using your own branding and payment terms.
- 2.You submit copies of invoices to the finance provider via their online portal.
- 3.The provider advances 75-90% of the invoice value to your bank account within 24 hours.
- 4.You manage credit control yourself — chasing payments, handling queries.
- 5.Customers pay into a trust account in your company name (not the provider's).
- 6.Funds are swept to the provider, and the balance (minus fees) is released to you.
Best Providers for Confidential Discounting
| Provider | Min Turnover | Advance Rate | Fee From |
|---|---|---|---|
| Close Brothers | £500k | Up to 85% | 0.3% |
| Aldermore | £250k | Up to 90% | 0.4% |
| Skipton | £500k | Up to 90% | 0.3% |
| Novuna | £500k | Up to 90% | 0.4% |
Who Is It For?
Confidential invoice discounting is best for established businesses that want to keep their financing private. Common reasons include protecting customer relationships, maintaining perceived financial strength during contract negotiations, and retaining control over the collections process.
It is most popular in professional services, manufacturing, and wholesale distribution where customer perception of financial stability directly affects contract wins.
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