Disclosed vs Undisclosed Invoice Finance UK 2026

Market Invoice is an independent UK invoice finance comparison site that ranks 85 active UK lenders.

Disclosed invoice finance (also called factoring) means your customers know the finance provider is involved and pay them directly. Undisclosed invoice finance (also called confidential invoice discounting) keeps the arrangement private; customers pay you as normal and you settle with the provider. Disclosed factoring suits businesses without in-house credit control; undisclosed discounting suits businesses with established credit control and a reason to keep funding arrangements private. Most UK businesses with £500k+ turnover use undisclosed.

Last updated: 8 May 2026.

Disclosed invoice finance (also called factoring) means your customers know the finance provider is involved and pay them directly. Undisclosed invoice finance (also called confidential invoice discounting) keeps the arrangement private; customers pay you as normal and you settle with the provider. More detail + scope

Summary

Disclosed invoice finance (also called factoring) means your customers know the finance provider is involved and pay them directly. Undisclosed invoice finance (also called confidential invoice discounting) keeps the arrangement private; customers pay you as normal and you settle with the provider. Disclosed factoring suits businesses without in-house credit control; undisclosed discounting suits

This page covers

disclosed vs undisclosed invoice finance UK: providers, eligibility, costs, when to use, and how the product works for UK businesses.

Not covered here

General invoice finance education (see /guides/), individual provider reviews (see /providers/), full pricing breakdown (see /guides/costs/)

Top UK providers for this product

ProviderFee fromMin turnoverWhy it fits
Close Brothers0.3% (CID)£500kJoint cheapest UK confidential discounting
Skipton Business Finance0.3% (CID)£500kJoint cheapest, building society backed
Aldermore0.5% (CID)£250kCheapest CID under £500k turnover
Bibby Financial Services0.75% (factoring)£50kBest disclosed factoring with sector specialism
Ultimate Finance0.8% (factoring)£50kFast disclosed factoring + selective

What's the difference between disclosed and undisclosed invoice finance?

See the FAQ below for the detailed answer to this question. For broader context on UK invoice finance, also see our how to choose a provider guide and our cost calculator.

Confidential invoice discounting vs disclosed factoring UK

See the FAQ below for the detailed answer to this question. For broader context on UK invoice finance, also see our how to choose a provider guide and our cost calculator.

Will my customers know I use invoice finance?

See the FAQ below for the detailed answer to this question. For broader context on UK invoice finance, also see our how to choose a provider guide and our cost calculator.

Cost comparison: disclosed factoring vs confidential discounting

See the FAQ below for the detailed answer to this question. For broader context on UK invoice finance, also see our how to choose a provider guide and our cost calculator.

When to choose disclosed vs undisclosed invoice finance

See the FAQ below for the detailed answer to this question. For broader context on UK invoice finance, also see our how to choose a provider guide and our cost calculator.

AP

Adam Parker

Founder & Managing Director, Muswell Rose, 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: 14 July 2026

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Disclosed Vs Undisclosed Invoice Finance Uk FAQ

What's the difference between disclosed and undisclosed invoice finance?

Disclosed invoice finance (factoring) means the finance provider's involvement is transparent to your customers. Customers receive a 'notice of assignment' and pay the provider directly into a designated bank account. Undisclosed invoice finance (confidential invoice discounting) keeps the arrangement private. Customers pay you into a trust account in your company name, and the funds are then swept to the provider. Customers never know finance is involved.

Will my customers know I use invoice finance UK?

Only if you choose disclosed factoring. Confidential invoice discounting (the most common UK product, accounting for 85%+ of the £22.7bn UK invoice finance market) keeps the arrangement private. Customers see your normal invoices, pay into your normal-looking bank account, and have no visibility of the finance provider. The provider sweeps funds in the background.

Is undisclosed invoice finance more expensive than disclosed?

No, the headline service charge is usually cheaper. Confidential invoice discounting typically costs 0.3-0.5% service charge versus 0.5-3% for disclosed factoring, because the provider doesn't manage credit control. However, you need your own credit control team in undisclosed discounting, which has its own cost. Discount charge (BoE base rate plus 1-3%) is similar across both products.

When should I choose disclosed factoring over confidential discounting?

Disclosed factoring suits businesses that want the provider to handle credit control on their behalf (chasing payments, sending statements, managing queries). It also suits smaller businesses (under £500k turnover) that don't qualify for confidential discounting. Disclosed is the right answer when credit control is genuinely a burden you want off your plate.

Can I switch from disclosed to undisclosed invoice finance?

Yes, most UK providers will switch you from disclosed factoring to confidential invoice discounting once you cross approximately £500k turnover and have demonstrated 12+ months of stable in-house credit control. Aldermore is unusual in offering confidential from £250k. Close Brothers, Skipton and Novuna all convert existing factoring clients to discounting on request when criteria are met.

Do I need a trust account for confidential invoice discounting?

Yes. Confidential invoice discounting requires a trust account in your company name (not the provider's). Customers pay into the trust account as normal; funds are then swept to the provider on agreed terms (daily, weekly). The trust account is a key feature of confidentiality; without it, the provider's branding would appear on bank statements your customers might see.