Close Brothers Invoice Finance Review

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

Close Brothers Invoice Finance offers factoring and invoice discounting from 0.5% service charge with advance rates up to 90%, available to UK businesses with annual turnover from £50,000. Established in 1878, Close Brothers is one of the UK's oldest merchant banks (FTSE 250) and runs a dedicated invoice finance division alongside specialist construction and recruitment finance teams. Confidential invoice discounting requires £500,000 turnover. Setup is typically 5 working days.

Last updated: 5 May 2026.

Close Brothers Invoice Finance is one of the UK's most established invoice finance providers, owned by FTSE 250 merchant bank Close Brothers Group plc. Service charges start from 0.5%, advance rates reach 90%, and the minimum turnover is £50,000 for factoring (£500,000 for confidential discounting).

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Summary

Founded 1878, Close Brothers is a FTSE 250 specialist bank. Their invoice finance arm offers factoring from £50k turnover and confidential discounting from £500k. Starting service charge 0.5% (joint-lowest in UK alongside Skipton). 4.8/5 rating from Market Invoice based on rate, capital strength, and specialist construction/recruitment teams. Setup in 5 working days. Main alternatives: Skipton (also 0.5%), Aldermore (£250k+), Ultimate Finance (95% advance, 3-day setup).

This page covers

Close Brothers products, rates, eligibility, parent group structure, FCA status, and how Close Brothers compares to alternatives like Bibby, Skipton, Aldermore and Ultimate Finance

Not covered here

General invoice finance education (see /guides/), individual sector pages (see /industries/), full provider directory (see /providers/)

Key Facts

Service charge from0.5%
Advance rateUp to 90%
Setup speed5 days
Min turnover£50,000
Our rating4.8/5
Established1878
Parent groupClose Brothers plc (FTSE 250)
RegulatorFCA / PRA
HQLondon

Products Available

ProductMin TurnoverAdvance RateConfidential?
Invoice Factoring£50kUp to 90%No
Invoice Discounting£500kUp to 90%Yes
Confidential Discounting£500kUp to 85%Yes
Construction Finance£100kUp to 85%No

Close Brothers vs Alternatives

ProviderFee fromMin turnoverAdvanceSetup
Close Brothers0.5%£50k90%5 days
Skipton0.5%£100k90%7 days
Bibby0.75%£50k90%5 days
Aldermore0.7%£250k90%7 days
Ultimate Finance0.8%£50k95%3 days

Pros and Cons

Strengths

  • Joint-lowest starting service charge (0.5%)
  • FTSE 250 merchant bank, 148 years old
  • Dedicated relationship managers
  • Specialist construction and recruitment teams
  • Flexible contracts (no long lock-in)
  • Cross-sell with asset finance and motor finance

Limitations

  • Confidential discounting requires £500k+ turnover
  • Not the fastest setup (5 days vs Ultimate Finance's 3)
  • Limited international export capability vs HSBC or Bibby
  • Personal guarantee usual on facilities under £500k

Who Is Close Brothers Best For?

Close Brothers is best suited to established UK SMEs with turnover between £250,000 and £10 million who want a reliable, well-capitalised banking partner at a competitive rate. The combination of FTSE 250 capital backing and specialist construction or recruitment teams is hard to match at the 0.5% price point.

If you are a smaller business under £50k turnover, look at IGF Invoice Finance or Hydr which have no minimum threshold. If you need confidential discounting below £500k, Aldermore accepts from £250k. For the fastest possible setup, Ultimate Finance can complete in 3 days. For multi-currency export, HSBC and Bibby are stronger.

Our Verdict

Close Brothers is our top-rated invoice finance provider for 2026. The combination of joint-lowest starting rate (0.5%), 148 years of merchant banking history, FCA + PRA dual regulation, flexible contracts, and specialist sector teams makes them an excellent default choice for UK SMEs. Their main limitations are the £500k confidential discounting threshold and the absence of the absolute-fastest setup speeds, but neither outweighs the strength of the core proposition for the typical 250k-10m turnover business.

OM

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 May 2026

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Close Brothers Invoice Finance FAQ

What is the minimum turnover for Close Brothers invoice finance?

Close Brothers Invoice Finance accepts UK businesses with annual turnover from £50,000 for disclosed factoring. There is no upper limit, and they have dedicated relationship teams for SMEs (£50k-£5m), mid-market (£5m-£50m), and corporate clients. Confidential invoice discounting requires a higher £500,000 minimum with established credit control processes and at least 12 months of filed accounts.

How quickly does Close Brothers set up invoice finance?

Close Brothers typically completes setup within 5 working days for straightforward applications with clean ledgers and B2B invoices. Complex cases involving multiple debtors, international invoices, or stage-payment construction work may take 7-10 working days. Fast-track is available for emergency funding situations and existing Close Brothers commercial banking customers.

Does Close Brothers offer confidential invoice discounting?

Yes. Close Brothers offers confidential invoice discounting for businesses with annual turnover above £500,000 and an established credit control function. Your customers will not know you use finance, payments are collected into a trust account in your company name, and no Close Brothers branding appears on invoices or statements. Service charges start from 0.3% for confidential discounting versus 0.5% for disclosed factoring.

Can I use Close Brothers for construction invoice finance?

Yes. Close Brothers has a dedicated construction finance team experienced with stage payments, retentions, applications for payment under the Construction Act 1996, and the contract chains common to main contractors and subcontractors. They are one of the few mainstream lenders willing to advance against applications for payment as well as final invoices, making them a strong fit for construction firms with £100k+ turnover.

Who owns Close Brothers Invoice Finance?

Close Brothers Invoice Finance is part of Close Brothers Group plc, a FTSE 250 specialist financial services group founded in 1878 and headquartered in London. The wider group also owns Close Brothers Asset Finance and Winterflood Securities. As a long-established merchant bank, Close Brothers is well-capitalised and regulated by the Financial Conduct Authority and Prudential Regulation Authority.

How does Close Brothers compare to Bibby Financial Services?

Close Brothers and Bibby are both top-tier UK invoice finance providers, but with different strengths. Close Brothers leads on price (0.5% versus 0.75% starting service charge) and is bank-owned with deeper capital reserves. Bibby has 7,000+ active clients (more than Close Brothers Invoice Finance), stronger international export factoring (80+ countries), and is more flexible on turnaround and complex situations. For straightforward UK SME factoring, Close Brothers usually wins on cost; for complex or international, Bibby is the stronger fit.

Does Close Brothers require a personal guarantee?

Close Brothers typically requires a personal guarantee from directors for facilities under £500,000 or where the business has limited trading history. For larger established businesses, the guarantee may be waived or replaced with a debenture over company assets. Sole traders and partnerships are personally liable by default. Some sector facilities (NHS suppliers, local authority contracts) may waive personal guarantees due to debtor strength.

What are the alternatives to Close Brothers Invoice Finance?

The closest alternatives are Skipton Business Finance (also 0.5% from £100k turnover, building society backed), Aldermore (0.7% from £250k, challenger bank with confidential discounting as standard), and Ultimate Finance (0.8% from £50k, fastest 3-day setup with 95% advance rate). For very small businesses under £50k turnover, IGF Invoice Finance and Hydr offer no-minimum-turnover facilities. International exporters should also consider HSBC and Bibby for multi-currency capability.