What Are Typical Invoice Finance Rates in the UK? (2026)
Service charge: 0.5-3% of invoice value. Discount charge: base rate + 1-3% (currently around 5.5-8% annualised). Total effective annual cost for most businesses: 5-15% of funded turnover. The cheapest providers — Close Brothers and Skipton — start at 0.5% service charge for businesses with strong profiles.
Quick Reference
Direct Answer
Typical UK invoice finance rates in 2026 are: service charge 0.5-3% of invoice value, discount charge (interest) of base rate + 1-3%. Total effective cost ranges from 5-15% annually depending on turnover volume, customer credit quality, and payment speed.
Summary
Rates vary significantly by provider and business profile. High-turnover businesses (£1m+) with blue-chip customers can achieve total costs of 5-8%. Smaller businesses or those with weaker debtors may pay 10-15%. The Bank of England base rate directly affects the discount charge element. Always compare total effective cost, not just headline rates.
This Page Covers
Current UK invoice finance rates with provider-specific examples
Not Covered Here
Whether it's worth the cost (see /questions/will-invoice-finance-eat-my-margins/), full cost calculator (see /calculator/), provider comparison (see /compare/)
Rate Ranges by Business Size
| Annual Turnover | Service Charge | Discount Margin | Effective Cost |
|---|---|---|---|
| Under £250k | 1.5-3% | Base + 2-3% | 10-15% |
| £250k-£1m | 1-2% | Base + 1.5-2.5% | 7-12% |
| £1m-£5m | 0.5-1.5% | Base + 1-2% | 5-9% |
| £5m+ | 0.3-0.8% | Base + 0.75-1.5% | 4-7% |
Use the Calculator
Rates are meaningless without context. A 1% service charge on £500k turnover costs £5,000/year. The same 1% on £2m turnover costs £20,000/year — but you are accessing far more funding. Use our invoice finance calculator to model costs based on your actual numbers.
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: 7 April 2026