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Estimate Your Invoice Finance Loan Costs using our calculator

Curious about your borrowing power? Use our Free Invoice Finance Calculator to estimate your monthly repayments.

How to use the calculator:

Adjust the Sliders: Provide the Invoice amount, percentage you want to borrow on the invoice and how many days your need the loan and the calculator will update automatically.

Invoice Finance Calculator FAQs

What is invoice finance and how can it benefit my business?

Invoice finance is a way for businesses to borrow money based on amounts due from customers. Instead of waiting weeks for a customer to pay their bill, a lender “buys” the invoice and advances you most of the cash immediately.

Benefits include:

  • Improved Cash Flow: You get immediate access to working capital to pay staff, suppliers, or taxes.

  • Scalability: As your sales grow, the amount of funding available grows with it—unlike a fixed-term loan.

  • No Property Security: Often, the invoices themselves act as the primary security, so you may not need to put up personal or business property as collateral.

There are two primary flavors of invoice finance, and the choice usually comes down to how much control you want to keep over your sales ledger.

  • Factoring: The lender manages your sales ledger and handles debt collection directly with your customers. It’s a “full-service” option but is visible to your clients.

  • Invoice Discounting: This is typically confidential. You maintain control over your own credit control and collections, and your customers never need to know a third party is involved.

Estimating costs for invoice finance is slightly different than a standard loan because fees are usually performance-based rather than a flat interest rate.

  • Service Fee: This is a percentage of your gross turnover (usually 0.2% to 5%) covering the administration of the facility.

  • Discount Fee: Similar to an interest rate, this is charged on the amount of cash you actually draw down (usually 1% to 4% above the base rate).

Pro Tip: To get a rough estimate, multiply your average monthly invoice volume by the expected service fee percentage, then add the interest on the specific “advance” amount you plan to use.

Speed is the primary selling point of invoice finance. Once a facility is set up:

  • Initial Setup: Can take 5–10 working days.

  • Ongoing Drawdowns: Most providers will advance 80% to 95% of an invoice’s value within 24 hours of you uploading it to their system. The remaining balance (minus fees) is paid to you once the customer settles the bill.

This depends entirely on the product you choose:

  • Disclosed (Factoring): Yes. Your customers will see the lender’s details on your invoices and will be contacted by the lender for payment.

  • Confidential (Discounting): No. You continue to chase payments under your own brand name, and the lender remains “behind the curtain.” This is often preferred by established businesses who want to maintain their existing client relationships.