Close Brothers for Manufacturing Invoice Finance
Close Brothers Invoice Finance is part of Close Brothers Group plc, a FTSE 250 specialist UK banking group. For UK manufacturers needing invoice finance against tier-1 / tier-2 supply chain receivables, with work-in-progress treatment for long production cycles, Close Brothers offers one of the lowest starting service charges (0.5%) combined with bank-backed funding security and Manchester / Birmingham regional underwriting teams.
Quick Reference
Direct Answer
Close Brothers Invoice Finance (FTSE 250 banking group) is a leading UK manufacturer invoice finance provider with work-in-progress handling, 0.5% starting service charge, and bank-backed funding. Sister Close Brothers Asset Finance offers complementary equipment funding. Best for established UK manufacturers £500k+ turnover.
Summary
Close Brothers Group plc (FTSE 250) operates Close Brothers Invoice Finance and Close Brothers Asset Finance as sister businesses for UK SME finance. Invoice finance service charge from 0.5% (one of the cheapest in the UK independent / challenger tier), reflecting bank-funding cost advantage. Manufacturing underwriting includes work-in-progress treatment as a separate sub-line at lower advance rates (60-75% vs 85-90% on completed invoices). Regional teams Manchester, Birmingham. Best for established UK manufacturers £500k to £20m turnover with tier-1 / tier-2 supply chain customer base.
This Page Covers
Close Brothers Invoice Finance manufacturing underwriting, work-in-progress treatment, asset finance cross-sell, typical pricing for manufacturing files
Not Covered Here
Provider review across all sectors (see /providers/close-brothers/), manufacturing finance via other providers, asset finance specifically (see /best/business-loans-asset-finance/)
The Close Brothers Group Manufacturing Advantage
Manufacturing files often need more than just invoice finance. New plant, vehicle fleet expansion, fit-out, refinance of existing asset finance, sale-and-leaseback to release working capital. Close Brothers Group is unusual in covering both invoice finance and asset finance through sister businesses (Close Brothers Invoice Finance and Close Brothers Asset Finance). A single group relationship can deliver both lines, with the two facilities coordinating at the credit-committee level on combined exposure rather than treating them as unrelated.
For mid-market manufacturers planning a multi-year capex cycle alongside ongoing working capital, the group relationship matters: a single relationship banker, a single quarterly review across both facilities, and a single negotiation cycle when terms refresh. Specialist independents (Bibby, IGF, Ultimate Finance) handle invoice finance well but require a separate asset-finance provider on the side.
Manufacturing-Specific Pricing
| Element | Close Brothers Manufacturing Pricing |
|---|---|
| Service charge | From 0.5% (one of the cheapest in the UK) |
| Discount charge | Base + 1.5% to 3.0% (currently 5.25% to 6.75% all-in) |
| Advance rate (completed invoices) | 85% to 90% |
| Advance rate (work-in-progress) | 60% to 75%, milestone-based release |
| Min turnover | £50,000 (one of the lowest UK floors) |
| Confidential discounting threshold | £500,000+ turnover with established credit control |
| Setup time | 5 to 10 working days, 7 to 14 for files needing WIP structuring |
When Close Brothers Wins for Manufacturing
- Bank-backed security is important. FTSE 250 banking parent vs independent funding lines. Material on £1m+ facilities.
- Asset finance need alongside invoice finance. Close Brothers Asset Finance is right next door at the group level.
- Cost-sensitive mid-market files. 0.5% service charge starting beats most independents.
- Established credit-control processes. Confidential discounting from £500k turnover keeps the facility off customer correspondence.
When to Look Elsewhere
- Higher advance rate needed. Ultimate Finance reaches 95% advance on strong files; Close Brothers caps around 90%.
- Heavy single-customer concentration. Close Brothers' bank-backed underwriting can be conservative on concentration; specialists like IGF or Bibby sometimes accept higher single-debtor exposure.
- Sub-£50k turnover. Below the Close Brothers floor; look at IGF or smaller-ticket fintech.
- Selective invoice finance need. Close Brothers is whole-turnover. For per-invoice funding without commitment, use Hydr or Accelerated Payments.
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Close Brothers Manufacturing FAQ
Does Close Brothers handle manufacturing invoice finance?
Yes. Close Brothers Invoice Finance (part of Close Brothers Group plc, FTSE 250) runs sector-specific underwriting on manufacturing files including work-in-progress treatment, milestone billing for long production cycles, and the contract terms common to tier-1 and tier-2 manufacturing supply chains. The Manchester and Birmingham regional offices anchor most of the UK manufacturing book.
How does Close Brothers handle work-in-progress?
Manufacturing invoices often represent completed work but the production cycle includes work-in-progress (WIP) that has not yet been invoiced. Close Brothers can structure the facility to advance against WIP separately from completed invoices, at lower advance rates (typically 60% to 75% vs 85% to 90% on completed receivables). The WIP element runs as a sub-line within the broader facility, repaid as production crystallises into invoiced revenue.
What turnover does Close Brothers require?
Standard floor is £50,000 annual turnover for invoice finance (one of the lowest in the UK challenger / clearing tier). Confidential invoice discounting (where customers are not notified) requires £500,000+ turnover with established credit-control processes. Most Close Brothers manufacturing files sit in the £500k to £20m turnover range.
Does Close Brothers offer asset finance alongside invoice finance?
Yes, that's a core advantage. Close Brothers Group runs Close Brothers Asset Finance and Close Brothers Invoice Finance as sister businesses within the same parent. Manufacturers buying new plant or refinancing existing equipment can run asset finance alongside invoice finance through a single group relationship. The two facilities sit independently but coordinate at the credit committee level on stacked exposures.
What is Close Brothers' typical pricing for manufacturing?
Service charge from 0.5% (one of the cheapest in the UK invoice finance market for the £50k+ tier), reflecting Close Brothers' bank-backed funding cost advantage. Discount charge at Bank of England base rate plus 1.5% to 3.0% (currently 5.25% to 6.75% all-in). Advance rates 85% to 90% on completed invoices, 60% to 75% on work-in-progress where applicable.
How does Close Brothers compare to Bibby on manufacturing files?
Both have manufacturing-aware underwriting. Close Brothers' headline service charge is lower (0.5% vs Bibby's 0.75%), backed by FTSE 250 banking. Bibby has the larger dedicated team and slightly more flexibility on smaller files (sub-£500k turnover). For mid-market manufacturers (£1m to £20m turnover) with clean trading, Close Brothers often wins on price; for the broader UK manufacturing SME base, Bibby's team depth wins more often.