Invoice finance calculator
See how much cash your invoices could release and an indicative monthly cost, based on the advance rate, service fee and discount rate you enter.
Estimated cash released
£127,500
- Service fee / month
- £2,250
- Discount charge / month
- £558
- Indicative total cost / month
- £2,808
Illustrative only. Actual rates, fees and terms depend on your circumstances and the lender. This is not an offer of finance.
How this calculator works
Invoice finance providers typically advance around 80–90% of approved invoices, then pay the balance (less their charges) when your customer pays.
Costs usually have two parts: a service fee (a percentage of your invoiced turnover) and a discount charge (interest on the money you’ve drawn, for as long as it’s outstanding). Some providers add set-up, audit or minimum monthly fees.
The headline figure is the cash released: your monthly invoicing multiplied by the advance rate. The cost rows split into the service fee, which follows your invoiced turnover, and the discount charge, which follows how much is drawn and for how long. The calculator assumes funds are drawn for your average days to get paid, so if customers pay later than that, the discount charge will usually be higher.
Try moving the days to get paid slider. For illustration only: on £150,000 of monthly invoicing with an 85% advance, a 1.5% service fee and a 3.5% discount rate, the indicative monthly cost is about £2,810 at 45 days and about £2,990 at 60 days. Slow-paying customers cost you twice: cash arrives later and you pay to fund the wait.
Providers often look at the quality of your sales ledger more than at profits: who your customers are, how reliably they pay, whether invoices are for completed work, and how concentrated the ledger is. When comparing offers, ask about minimum fees, the notice period, any charges for leaving early, and whether the facility covers the whole ledger or selected invoices. The estimate leaves out set-up, audit and other extra charges.
Want to understand the product first? Read our guide to invoice finance.
Invoice finance calculator: common questions
Factoring or invoice discounting?
With factoring the provider runs your sales ledger and chases payment; customers know. With invoice discounting you keep collecting and it can be confidential. Discounting usually needs stronger accounting controls and higher turnover.
Are all invoices eligible?
Usually not. Providers often exclude invoices that are disputed, very overdue, owed by connected companies, or concentrated with one customer beyond an agreed limit.
Do directors give guarantees for invoice finance?
Commonly, yes. It is often an indemnity covering losses from invalid invoices or breach of the agreement. Read it carefully and take legal advice.
How much does invoice finance cost?
Usually a service fee, set as a percentage of invoiced turnover, plus a discount charge on the money you draw, worked out like interest. Some providers add set-up, audit, minimum monthly or exit fees. The total depends on your turnover, how quickly customers pay and the provider, so compare offers on the full monthly cost, not the headline fee alone.
What is the difference between the advance and the cash I receive overall?
The advance is paid soon after you raise an invoice. The rest, often called the retention, is paid when your customer settles, minus the provider’s charges. So over a full cycle you receive almost the whole invoice value, just in two stages, with the cost taken from the balance.
Can I finance just one or a few invoices?
Some providers offer selective invoice finance, where you choose which invoices to fund instead of committing your whole sales ledger. It can suit occasional cash-flow gaps, though the cost per invoice may be higher and the provider still assesses each customer. Whole-ledger facilities usually suit companies that want ongoing funding as sales grow.
Does invoice finance grow with my sales?
Usually, yes. Because funding is linked to the invoices you raise, the amount available can rise as turnover grows, within the facility limit and any limits on individual customers. If your sales are seasonal, the available funding will also tend to rise and fall with your invoicing.
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