Close Brothers
A long-established, PRA/FCA-authorised UK merchant bank whose lending to the lower-mid-market is overwhelmingly asset-backed — invoice finance and ABL, asset/equipment finance, and property development finance.
What they do
Close Brothers is a UK merchant banking group (founded 1878; banking entity Close Brothers Limited, FRN 124750) that lends through specialist, sector-focused divisions rather than as a single balance-sheet corporate lender. The strands most relevant to a corporate borrower are Invoice Finance / Commercial Finance (factoring, invoice discounting and asset-based lending against receivables, inventory, plant and machinery, and property), Asset Finance (hire purchase, finance and operating leases, refinance/capital release on equipment and vehicles), and Property Finance (development, investment and bridging finance for experienced developers). Its Corporate & ABL team publicly indicates bilateral ABL facilities from c.£3m to £65m, syndicated/club deals above £65m, and cash-flow loans of up to £10m as a top-up where cash generation supports it. Lending is relationship-led and structured around the security available rather than offered as covenant-light cash-flow leverage.
Where they fit in a lower-mid-market raise
In a £3–15m raise, Close Brothers is a credible counterparty where the borrowing case is asset-backed: a working-capital line secured on a debtor book and inventory, an ABL package supporting an MBO/M&A or refinancing for a £5m+ turnover business with tangible collateral, equipment/fleet finance for capex, or development finance for a property-led borrower. Their ABL band (bilateral from c.£3m) sits squarely in our range, and the up-to-£10m cash-flow top-up can stretch a structure where security alone falls short. They suit borrowers who value a long-dated, well-capitalised bank relationship and a structure built around real assets.
Where they are not the fit
Close Brothers is not the right call for a pure cash-flow or sponsor-style leveraged unitranche on a capital-light business — there is no tangible security to anchor an ABL or asset-finance structure, and the cash-flow loan is positioned as a top-up rather than a standalone product. It is also a divisional, product-led bank rather than a single-ticket bespoke direct lender, so a borrower wanting one negotiated facility blending leverage and growth capital across an asset-thin balance sheet is better served by a private credit fund. Pricing and process reflect a regulated bank, not a flexible alternative-credit provider.
Published terms
- Pricing
- Not published
- Speed to terms
- Not published
- Sponsored or sponsorless
- Both sponsor-backed and owner-managed borrowers
- Where they lend
- Wide (separate Ireland book via Close Brothers Commercial Finance IE)
- How they decide
- Dedicated Corporate & ABL team within Close Brothers Invoice Finance; asset-finance arm broker- and direct-originated with delegated underwriting. Cadence/delegated authority on ABL not published. Authority is delegated below committee on at least part of the book
- Security
- A borrowing base over receivables, inventory and plant
- Covenants
- Springing covenant, tested only when a trigger is hit
As published by the lender and last reviewed July 2026. Terms quoted on a deal are set by the credit, not by a published band.
The desks that lend
Close Brothers lends through 2 separate books. Which one reads a deal decides the security, the covenant package and the band, so the question is rarely whether Close Brothers lends, but which of these would own it.
Corporate & asset-based lending (bilateral ABL + cashflow loan)
- Facility
- £3m to £65m
- Security
- A borrowing base over receivables, inventory and plant
- Covenants
- Springing covenant, tested only when a trigger is hit
- Funds
- Acquisition · Growth · MBO · Refinance · Turnaround
- Rules out
- Needs a collateral base (debtors/stock/P&M/property) - asset-light service businesses a weak fit; Cashflow-loan layer capped at £10m
Asset finance (HP / lease / refinance)
- Security
- Fixed charge
- Funds
- Acquisition · Growth · MBO · Refinance
- Rules out
- Asset-value driven - relevant only as a capex/asset sleeve within a deal, not standalone acquisition debt
Limits that apply across the firm
Stated limits, taken from Close Brothers’s own published criteria, beyond the ones each desk carries above. A limit is where a lender starts from, not where it always ends: several of these move on a strong enough credit.
- No appetite in adult, crypto, gambling or weapons
How they sit against the category
- Its published ceiling of £65m is among the 2 highest of the 42 challenger and specialist banks here.
- Like 24 of the 42, it publishes no indicative price — a margin comes from a conversation, not a page.
Counted across the 42 challenger & specialist banks in this directory, on what each one publishes. What a lender discloses and what it will do are different things.
Questions this page answers
How large a facility does Close Brothers write?
Published facilities run £3m to £65m. A band is what a lender states it will do, not what it will do on a given credit.
What security does Close Brothers take?
On the published terms, a borrowing base over receivables, inventory and plant. What a lender takes on a given facility is set in the documents, not by a published stance.
Does Close Brothers lend to companies without a private-equity sponsor?
Yes. Close Brothers lends to owner-managed and sponsor-backed borrowers alike, so a company with no private-equity backer is not out of scope on that ground.
Where does Close Brothers lend?
Wide (separate Ireland book via Close Brothers Commercial Finance IE).
What covenants does Close Brothers set?
Springing covenant, tested only when a trigger is hit. A covenant package is negotiated on the facility; the published style is where the negotiation starts.
On the record
Close Brothers Invoice Finance's Corporate & ABL team provides bilateral ABL structures from £3m to £65m (covering trade debtors, inventory, plant and machinery, and commercial property), syndicated/club facilities above £65m, and cash-flow loans of up to £10m; announced alongside a Corporate Sales Director appointment on 24 October 2025.
Close Brothers' asset-based lending funds against outstanding invoices, property, stock, plant and machinery, with up to 90% prepayment on accounts receivable, aimed at companies with annual turnover in excess of £5m.
Close Brothers Limited is a bank authorised by the PRA and regulated by the FCA and PRA, with Firm Reference Number 124750.
Close Brothers lends through specialist divisions including Asset Finance, Invoice Finance, Property Finance, Aviation & Marine, Braemar (professional-services equipment finance) and Commercial Acceptances (bridging).
Close Brothers Asset Finance offers hire purchase, finance lease, operating lease and refinance/capital release, with core customers in transport, construction and manufacturing and a wide range of other industrial sectors.
Close Brothers Property Finance provides development, investment and bridging finance to experienced developers, with facilities reported in the c.£750k to £20m range.
Sources: closebrothers.com · closeinvoice.co.uk · leasinglife.com
This profile is a curated reference note drawn from public sources, not financial advice or a recommendation. Appetite and terms change; a lender's fit for a given credit is established by approaching it, not inferred from a page.