Invoice finance calculator
Estimate how much cash your unpaid invoices could release, and what a typical factoring or discounting facility might cost each month.
How this calculator works
Your outstanding sales ledger is estimated from monthly sales and how long customers take to pay: £100,000 a month paid in 60 days means around £200,000 is owed to you at any time. Funding available is that ledger multiplied by the advance rate.
The monthly cost combines the two charges most facilities use: a service fee on invoiced sales, and a discount charge on the money drawn, shown here at the annual rate divided by twelve. It assumes you draw all the funding available.
What lenders will look at
Not every invoice will be funded. Providers usually exclude invoices that are overdue, disputed or owed by connected companies, and may cap how much of the ledger one customer can make up. That can reduce the funding available below this estimate.
Facilities may also carry set-up, audit, minimum fee and credit protection charges, and some have notice periods. Factoring includes collecting payments from your customers; invoice discounting leaves collection with you.
Find out more about invoice finance, or tell us what you need and we will search the market for lenders suited to your case.
Questions about this calculator
How much can I borrow against my invoices?
Typically a percentage of approved, unpaid invoices, often up to around 90% depending on the provider, your customers and your sector. The rest, less charges, is paid when your customer pays.
Is invoice finance expensive?
It depends on the fees and how much you draw. The calculator shows the cost as a share of sales so you can compare it with the value of being paid sooner, such as supplier discounts or extra capacity.
Can I finance only some invoices?
Yes. Selective invoice finance lets you choose individual invoices rather than the whole ledger, usually at a higher cost per invoice.
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Want real figures for your business?
A calculator can only use the numbers you give it. Tell us what the funding is for and we will search our panel of 300+ lenders for options suited to your case. No obligation, and free to enquire.