What Is the Service Charge in Invoice Finance?
The service charge is a percentage of the gross invoice value, typically 0.5-3%, charged by the provider to cover administration, credit checks, and (for factoring) credit control. It is the main visible cost. Larger facilities and better debtor quality attract lower rates. Close Brothers and Skipton offer the lowest at 0.5%.
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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: 6 April 2026