The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.
Invoice discounting fees vary significantly by provider and can often be negotiated. Here's what members have encountered: **Fee structures typically comprise two components:** - A service fee (usually 0.2–0.25% of the available facility) - A discount margin over base rate (typically 1.75–2.25%) **Specific provider quotes members shared:** - **Lloyds** — 0.2% service fee + 2.25% discount over base rate (with potential to negotiate the service fee lower) - **NatWest** (historical, several years ago) — ~1.75% margin over base + 0.25% facility fee, though the facility fee was negotiated down to a fixed amount and the bad-debt protection element was removed when the member used a separate credit insurer - **Aldermore** — members have used this at scale (seven figures annually) and found the fees "not uncomfortable" relative to cashflow benefits, though one member noted a competing **Credit Agricole** quote at 50% less than Aldermore's pricing **Negotiation tactics:** - Service fees are negotiable; members have successfully argued for lower or fixed fees by demonstrating that the full facility isn't needed year-round (e.g., only at peak seasonal periods) - Bundled bad-debt protection can be expensive; consider using a separate credit insurer and removing that fee element - Fees are heavily dependent on business profile and turnover; direct comparison between providers requires understanding your specific circumstances **Key caveat:** One member emphasized that while percentage-based fees might seem high in abstract terms, the cashflow benefit often justifies the cost for growing businesses.