How our fees work

At Close Brothers, we know fees matter. That’s why all of our invoice finance agreements are individually priced. Charges are tailored to your business, and are based on operational factors, as well as the facility you choose.

Charges and fees explained

Our charges and fees explained

Our fees differ according to the type of facility you require and are calculated based on the size of your business, the value of any outstanding invoices and the time it takes your customers to pay their invoices. Before choosing which product might be best for your business it’s probably helpful for you to understand how both forms of invoice finance (factoring and invoice discounting) work.


Video guide to invoice finance

How our fees work

Our pricing is made up of two main charges:

  1. Service charge – covers the ongoing delivery of your facility and will vary according to the value and volume of invoices you put through the facility. Charges for our credit control, which is included in any factoring service, and optional 100% bad debt protection, are also included here.
  2. Discount charge – much like a bank overdraft. Charged as a percentage over LIBOR against drawn funds calculated against daily outstanding balance and debited at month end. Please note the percentage over LIBOR can vary.

Additional fees may apply depending on the type of facility that you require. This will be discussed as part of the initial arrangement of your facility.

Libor, Euribor and Base Rate explained


The London Interbank Offered Rate (LIBOR) is a daily reference rate based on the interest rates at which banks borrow unsecured funds from other banks in the London wholesale money market (or interbank lending market). Alternatively, this can be seen from the point of view of the banks making the 'offers', as the interest rate at which the banks will lend to each other: that is 'offer' money in the form of a loan for various time periods (maturities) and in different currencies.


The Euro Interbank Offered Rate (Euribor) is a daily reference rate based on the averaged interest rates at which banks offer to lend unsecured funds to other banks in the euro wholesale money market (or interbank market).

Base Rate

The official bank rate (also called the Bank of England base rate or BOEBR) is the interest rate that the Bank of England charges Banks for secured overnight lending. It is the British Government's key interest rate for enacting monetary policy.