Close Brothers Invoice Finance: facilities and eligibility

Close Brothers Invoice Finance is the invoice finance business of Close Brothers Group, based in Brighton. It lends against unpaid invoices raised to business customers, and against wider assets through asset-based lending. On its own site it lists invoice finance, invoice factoring, invoice discounting, asset based lending, bad debt protection, Liquidity Plus, Growth Guarantee Scheme facilities and commercial mortgages.

It describes the basic mechanism simply: you invoice your customer, it advances up to 90% of the invoice value, and when your customer pays you receive the balance less its fee. Our invoice finance guide explains the product type in general.

For the difference between the first two, see our comparison of invoice discounting vs factoring. In short, factoring hands collections to the provider and discounting keeps them with you.

For factoring and invoice discounting, Close Brothers publishes three conditions:

• Business-to-business invoices. Sales to consumers do not qualify.
• Turnover of at least £750,000 a year.
• The whole sales ledger. You should be looking to finance all your invoices, not just a few.

It says export sales may be considered for invoice discounting, especially with bad debt protection. Asset-based lending is aimed mainly at larger companies with annual turnover above £5 million, and it names management buy-outs and buy-ins, mergers and acquisitions among the uses. A cash flow loan top-up may be available to businesses with a record of strong cash generation and a positive forecast.

Close Brothers lists recruitment, manufacturing, food and drink, business services, print and packaging, and retail among the sectors it serves. Our guides to recruitment agency finance and manufacturing finance cover those sectors' wider funding options.

Close Brothers says each agreement is individually priced. Its invoice finance page describes two charges: a service fee, set as a percentage of turnover, and a discount fee, charged on the daily outstanding balance. It does not publish rates, so ask for a written quote showing both and any minimum fee.

On timing, it says that after onboarding money is often available within a couple of weeks, that the first drawdown may be available within 24 hours of completion, and that cash is typically advanced within 24 hours of submitting eligible invoices. Those are its own statements of what is typical, not a promise for your case. Its IDeal software links to accounting packages so invoices can be submitted electronically.

Remember that the advance covers the invoice, not your customer's habits. Close Brothers itself notes that invoices often start at 30 days while customers often take 45 to 60, and some larger companies prefer up to 90 days. The longer they take, the longer the discount fee runs.

Close Brothers does not set out its standard contract length on its product pages; it links to separate terms and conditions. The terms of its current bad debt protection promotion give a sense of what to expect: they refer to a minimum 18-month contract plus a six-month notice period, and a minimum fee for the rest of the contract after an introductory period.

• The minimum term and notice period, and what it costs to leave early.
• Any minimum annual fee, payable even if you draw less.
• Whether the facility is with or without recourse, and the cost of bad debt protection.
• Any personal guarantee or indemnity asked of directors. Our page on personal guarantees explains what that means.
• How disputed invoices and credit notes are treated.

Yes. Close Brothers says it offers term loans, asset finance, overdrafts, invoice finance and asset-based lending under the Growth Guarantee Scheme. It publishes these terms:

• Facilities of up to £2 million per business group, or £1 million for Northern Ireland Protocol borrowers.
• Minimums of £1,000 for invoice finance and asset-based lending, and £25,001 for term loans and overdrafts.
• Invoice finance and overdrafts over three months to three years; term loans and asset finance over three months to six years.
• Turnover of up to £45 million, on a group basis.
• The lender receives a 70% government-backed guarantee; the borrower remains 100% liable.
• Personal guarantees at Close Brothers' discretion; a principal private residence cannot be taken as security.

It says the scheme has been extended to 31 March 2030, and that previous government-backed borrowing may reduce the maximum available.

If your turnover is below £750,000, or you want to fund only some invoices, look at providers offering selective or spot invoice finance. If you have significant stock and plant as well as debtors, compare asset-based lenders. Other invoice finance providers, with each one's published terms, are in our lender directory.

You can check your funding options with Capzy using a soft search that does not affect your credit score. A lender's full application may involve a hard search, and all finance is subject to status and lender criteria. More lender guides are in our lenders category.