Invoice finance providers typically charge various fees associated with their services. These can vary depending on the specific provider, the type of invoice finance, and the terms of the arrangement. Some standard fees associated with invoice finance may include the following:

1. Discount fee or discount rate (Interest): This is the fee charged by the invoice finance provider for advancing funds against the invoices. It is typically calculated as a percentage of the invoice value and may be set upfront or periodically (e.g., monthly).
2. Service fee: This is a fee charged by the invoice finance provider for managing the invoice collections process, including credit control, debtor administration, and collections. It may be a fixed fee or a percentage of the invoice value, and it may be charged in addition to or instead of a discount fee.
3. Set-up fee: This is a one-time fee charged by the invoice finance provider to set up the invoice finance facility. It may cover administrative costs, due diligence, and other expenses associated with onboarding a new client.
4. Termination fee: This is a fee charged by the invoice finance provider if the invoice finance facility is terminated before the agreed-upon term. It may be a fixed fee or a percentage of the invoice value, which may apply if you wish to end the arrangement early.
5. Other fees: There may be other fees associated with invoice finance, such as fees for additional services, like credit insurance or debtor verification, or fees for late payment, dishonoured payments, or other special services.

I think it’s important to carefully review and understand the fees associated with any invoice finance arrangement before proceeding. Working with a reputable and experienced invoice finance provider and seeking professional financial advice can help you fully understand the fees involved. Could you make sure to ask the invoice finance provider for a clear breakdown of all fees and consider the overall cost of the financing when evaluating the suitability of invoice finance for your business?