What Is the Discount Charge in Invoice Finance?
The discount charge is effectively interest on the money advanced to you. It is quoted as a percentage above Bank of England base rate (typically base + 1-3%) and charged daily on the outstanding advance until your customer pays. The longer your customer takes to pay, the more discount charge you pay.
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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