Original capital
- Basis
- Interest calculated against the original amount
- Question
- What are the payments and total payable?
FACILITY FEES & COSTSWhat will the funding
What will the funding
actually cost?
Understand the charging basis, the cash you receive and the total commitment. NBS Finance does not charge you a broker fee.
Discuss your funding costs
SUBSTANTIAL FUNDING / ESTABLISHED COMPANIES
NBS CHARGING POLICY
No client broker fee. NBS Finance is paid by funders when a facility completes.
Finance-provider interest, service fees and other agreement charges are separate. Relevant remuneration and intermediary roles are explained before an introduction progresses.
INVOICE FINANCETwo charges.
Two charges.
Two different bases.
The service fee commonly relates to invoices or turnover processed through the facility, with a minimum fee in some agreements. The discount charge is the cost of funds used over time. A percentage of the facility limit is not a reliable description of the total price.
Confirm the exact turnover definition, VAT treatment, minimums and whether the discount rate is a full annual rate or a margin added to a reference rate. A reference-rate floor can also matter. Protection, surveys, audits, transfers and other services may carry separate charges.
For a hypothetical £8m of annual turnover processed, 0.2% is £16,000 and 0.5% is £40,000 a year in service fees alone. Interest on drawings and other charges would be additional. That is why “0.5% finance” would be an incomplete description.
A PUBLISHED EXAMPLE, NOT AN NBS RATE
0.2%–0.5% of annual turnover
Touch Financial’s guide published 19 February 2024 describes this service-fee range for medium-sized businesses using invoice discounting. It is one broker’s published example, not a current market-wide range, a factoring price or a quote available through NBS. Minimums and other charges can apply.
Read the dated source ↗HYPOTHETICAL INVOICE-FINANCE COSTBuild the
Build the
annual number.
Service fee£32k£8m × assumed 0.4%
+Interest£48k£600k average drawn × assumed 8%
+Other costs£3kAssumed annual costs
Illustrative annual cost£83,000Compare usable cash, security and conditions alongside cost.
All rates and costs in this calculation are assumptions, not current market pricing.
| Assumption | Annual cost |
|---|---|
| £8m turnover × assumed 0.4% service fee | £32,000 |
| £600k average drawn × assumed combined 8% annual rate | £48,000 |
| Assumed additional annual charges | £3,000 |
| Total illustrative annual cost | £83,000 |
The rates and charges are modelling assumptions, not market pricing or an offer. This simplified annual model excludes changes in usage, taxes and any charges not entered.
Use the annual cost calculatorASSET FINANCEAPR, flat rate
APR, flat rate
or lender yield?
Outstanding capital
- Basis
- Interest on the reducing loan balance
- Question
- What annual rate and fees apply?
Provider return
- Basis
- A lender pricing measure
- Question
- Do not relabel it as customer APR
Ask what the percentage means before comparing quotes. A flat rate charges interest against the original amount across the term; a reducing-balance rate applies to outstanding capital. APR and a lender’s minimum net yield are different measures again. One cannot be relabelled as another.
Allica Bank’s published broker guide dated 20 March 2026 lists 6.75%–7.30% across terms in its £150k–£2.5m hard-asset band. The guide expressly describes these as minimum net yields to Allica. They are not customer APRs, an NBS quote or evidence of current availability. We do not use them as a headline borrower-rate promise.
For your proposal, compare deposit, net amount financed, repayment schedule, fees, any balloon, ownership terms and total payable. Confirm VAT timing and the treatment of any early settlement.
Illustration only: £500,000 repaid over 60 equal monthly instalments at an assumed 8% annual reducing-balance interest rate, compounded monthly, is approximately £10,138.20 a month and £608,291.83 in total, before fees. This is not an APR quote or a current market rate; rounding can affect the final payment.
BUSINESS LOANS & REFINANCINGNet proceeds.
Net proceeds.
Total repayment.
Loan pricing depends on trading, affordability, security, term and provider assessment. There is no evidenced single “standard rate” offered by NBS for a substantial business loan.
Ask for gross borrowing, fees deducted, cash received, the payment schedule and total amount payable. If a quote uses a flat rate, factor rate or fixed charge, request an explanation on a comparable basis. Include settlement charges when replacing debt.
For example, a hypothetical £300k loan with £6k fees deducted provides £294k before any existing debt is settled. A lower monthly payment over a longer term can increase total repayment.
Compare the refinancing decision ↗WHAT MOVES THE PRICE?The business behind
The business behind
the percentage.
Risk and evidence
Accounts, cash generation, customer quality, assets, security and the clarity of the funding purpose.
Structure and usage
Term, average drawings, turnover processed, deposit, payment profile and any balloon or minimum fee.
Services and change
Collections, protection, valuations, legal work, early settlement and the costs of moving from an incumbent.
Bring the written terms to a funding conversation. We can agree which cost and funding questions to examine. No lowest-rate, saving or approval promise is made.
PRODUCT CONTEXT / FURTHER READINGBritish Business Bank: invoice finance ↗Touch Financial: invoice discounting costs, 19 February 2024 ↗Allica Bank: asset-finance guide dated 20 March 2026 (PDF) ↗
These external sources explain product features. They do not establish an NBS agreement, current lender appetite or terms available to your business. Content reviewed 24 October 2026.
A CLEAR BRIEF IS THE STARTA substantial requirement.
A substantial requirement.
A useful conversation.
Discuss your funding costs
Start with a brief enquiry.
No financial documents needed to begin.