£1,437,500
- Advance
- 85% of £1.75m eligible debt
- Reserves
- £50k
INVOICE FINANCE PROVIDER COMPARISONCompare what is available.
Compare what is available.
Then compare the price.
A provider comparison should show the cash the business can use and the commitments required to obtain it. A lender name, maximum advance or service-fee percentage is not enough.
Discuss a provider comparison
SUBSTANTIAL FUNDING / ESTABLISHED COMPANIES
THE COMMERCIAL STARTING POINT
For a £500k+ invoice-finance requirement, compare the same debtor ledger, expected turnover and usage under each actual proposal. Include staying or amending the incumbent where relevant. This is a decision framework, not a provider league table or a claim that every option is available through NBS.
Invoice finance £500k+ · Asset finance £250k+ · Business loans £200k+. Focus amounts, not fixed eligibility thresholds.
01 / THE COMMERCIAL DETAIL
Use one set of trading assumptions
Set a comparison date and record turnover processed, eligible invoices, key customers, average drawings and collection days. If one provider excludes a customer that another accepts, show the difference explicitly rather than using the same gross ledger total for both.
Separate an advertised product feature, indicative terms and an approved offer. A maximum published advance does not establish the rate available to your business or its biggest customer.
02 / THE COMMERCIAL DETAIL
Compare the three commercial layers
| Layer | Read in each proposal |
|---|---|
| Available cash | Eligibility, advance, caps, reserves and limit |
| Annual cost | Service basis, minimums, discount rate and other fees |
| Operating fit | Collections, verification, reporting and notification |
| Commitment | Security, guarantees, recourse and default terms |
| Layer | Questions for each proposal |
|---|---|
| Usable funding | What debt is eligible? Which customer caps, reserves, currency rules and facility limits restrict drawings? |
| Annual cost | What turnover basis, service minimum, discount rate, reference-rate floor and additional charges apply at expected usage? |
| Operating fit | Who collects debts? How does verification work? What reporting, bank-account and customer-notification duties apply? |
Put security, guarantees, recourse and default terms alongside those layers. Bad-debt protection, if offered, has its own exclusions, limits and claims conditions.
03 / THE COMMERCIAL DETAIL
Allow for the cost of changing
The incumbent’s notice period and termination costs can change the preferred route. The new arrangement can add surveys, legal work, implementation and a temporary overlap in costs. Check customer communication and receipt reconciliation before a proposed transfer.
The sensible result may be a different facility, a negotiated amendment or no change. A comparison should preserve those possibilities rather than treating the exercise as a commitment to switch.
HYPOTHETICAL EXAMPLE / NOT A CLIENT CASE
Two terms change availability by £140k
£1,297,500
- Advance
- 90% of £1.6m eligible debt
- Reserves
- £142.5k
Hypothetical illustration only. Not a client case, quote, lender policy or funding commitment.
A hypothetical £2m ledger contains £250k excluded under proposal A and £400k under B. At assumed advance rates of 85% and 90%, gross funding is £1.4875m and £1.44m. After reserves of £50k and £142.5k, funding before drawings is £1.4375m for A and £1.2975m for B. Despite its higher advance percentage, B supports £140k less. Assume limits do not bind; all terms are invented.
Illustrative assumptions only. Not a quote, provider policy or funding commitment.COSTS, SECURITY & PRACTICAL CONSTRAINTSKnow the cash.
Know the cash.
Know the commitment.
Calculate service charges on the stated turnover or invoice basis, with minimums; calculate the discount charge on expected funds used. Include separate protection, audit, legal, transfer and administration costs where they apply. Do not treat a margin above a reference rate as the full annual rate.
Understand facility fees and costs ↗For the next stage of assessment
- Same-date debtor ledger and current availability statement
- Written proposal terms with eligibility and security conditions
- Expected turnover processed, drawings and seasonal usage
- Incumbent notice, exit charges and any proposed setup costs
The brief enquiry does not require these documents. Agree the purpose, permissions and appropriate sharing route first.
BEFORE YOU PROCEEDThe questions
The questions
worth settling.
Do you rank named providers from best to worst?
No. The best fit depends on the business, ledger and terms. Published maxima are not a useful universal ranking.
Is a 95% advance always better than 85%?
No. Exclusions, concentration limits and reserves can outweigh a higher advance percentage. Compare the actual availability.
Can we compare costs ourselves?
Yes. The educational headroom and annual-cost calculators help model assumptions. They do not obtain quotes or undertake an NBS review automatically.
PRODUCT CONTEXT / FURTHER READINGHilton-Baird: invoice factoring costs ↗British Business Bank: invoice finance ↗
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 a provider comparison
Start with a brief enquiry.
No financial documents needed to begin.