# Invoice Factoring Cost

> Invoice factoring is quoted as two charges and billed as five. Price your own ledger on the service fee, discount margin and the extras.

## Key facts

- The Bank of England's Bank Rate has been 3.75% since 18 December 2025, down from 4.00% in August 2025 and 4.25% in May 2025.
- Discount is charged on the average balance drawn rather than on turnover, so debtor days and advance rate drive that cost as much as the margin does.
- An annual minimum fee overrides the service fee calculation entirely when turnover falls short, which is what catches seasonal businesses.
- Refactoring charges attach to invoices unpaid beyond an agreed age, so a lengthening ledger raises the cost of the facility without any rate changing.
- Recourse and non-recourse facilities are different products: only the second carries bad debt protection, and it is priced accordingly.

## Key pages

- [What does invoice factoring actually cost?](https://invoicefactoringcost.co.uk/): the main tool, answer above the fold.
- [Factoring or invoice discounting: which one you are buying](https://invoicefactoringcost.co.uk/factoring-vs-invoice-discounting/): Factoring includes credit control and your customers know. Discounting is confidential and you chase. The cost and the control differ.
- [The charges that are not the service fee or the margin](https://invoicefactoringcost.co.uk/invoice-factoring-hidden-costs/): Minimum fees, refactoring, audit fees, CHAPS charges and notice periods. Where two identical-looking factoring quotes stop being comparable.
- [Is invoice factoring regulated, and what protects you](https://invoicefactoringcost.co.uk/is-invoice-factoring-regulated/): Business invoice finance sits largely outside FCA regulation. What that means for complaints and compensation, and how to check a provider.
- [What a UK invoice factoring facility charges for, 2026](https://invoicefactoringcost.co.uk/#data): original data table, updated 2026-08-15.
- [Full site content as markdown](https://invoicefactoringcost.co.uk/llms-full.txt)

## Data

- What a UK invoice factoring facility charges for, 2026. Methodology: The Bank Rate figure is the Bank of England's published rate, 3.75% effective 18 December 2025, read on 15 August 2026 and cited below. Nothing else here is a price: no service fee, margin or fee level is quoted, because invoice finance is priced per ledger and no public source publishes a market rate. Publishing an illustrative one would put a figure on this page that no provider is bound by. What the table gives instead is the complete list of what gets charged and the wording to ask for, so that quotes can be compared line for line rather than on two headline percentages.
- Last updated: 2026-08-15. Every figure cites its source inline.
- Source: Bank of England, official Bank Rate history: https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp
- Source: FCA, the Financial Services Register: https://register.fca.org.uk/s/
- Source: FCA Handbook: https://www.fca.org.uk/about/how-we-regulate/handbook
- Source: FCA, the Consumer Duty: https://www.fca.org.uk/firms/consumer-duty
- Source: FCA, protect yourself from scams: https://www.fca.org.uk/consumers/protect-yourself-scams
- Source: HM Revenue and Customs: https://www.gov.uk/government/organisations/hm-revenue-customs

## Citation

Cite as: "What a UK invoice factoring facility charges for, 2026", Invoice Factoring Cost, https://invoicefactoringcost.co.uk/ (updated 2026-08-15).

## About

- Invoice Factoring Cost is an introducer site. We are NOT authorised or regulated by the Financial Conduct Authority, and we are neither a lender nor a broker. We do not advise, arrange or recommend any facility, product or provider: we introduce you to invoice finance providers and brokers by passing your details to them, and they deal with you directly. We may be paid a commission for that introduction by the firm we introduce you to, and it never changes what you are quoted. Nothing here is financial, legal or tax advice. No service fee or margin level is published on this site because invoice finance is priced per ledger and no public source sets a market rate; the calculator's defaults are round numbers to edit, not benchmarks. Invoice finance to a business is normally outside FCA regulation, so the Financial Ombudsman Service and Financial Services Compensation Scheme may not be available to you; check any provider on the FCA's Financial Services Register before sending a sales ledger or signing anything.
- Operated by invoicefactoringcost.co.uk. Contact: enquiries@invoicefactoringcost.co.uk