Business & property finance
Invoice finance calculator
Customers taking 60 days to pay? Separate the cash released now from the balance released later, and see how fees and delayed payment change the benefit.
Your scenario
Jump to resultsDefaults are illustrative assumptions, not current rates or available offers. Figures stay on this page and are not sent to a lender.
Illustration · GBP
Your result
- Balance released after payment
- £12,242
- Eligible invoice value
- £90,000
- Advance before service fee
- £76,500
- Service fee
- £900
- Discount charge
- £1,258
- Total fees for this batch
- £2,158
- Total received after fees
- £87,842
- Fees / eligible invoices
- 2.4%
- Extra discount cost if 30 days late
- £629
The unadvanced balance is not a fee. It is released after customer payment, less charges and any continuing reserves.
This is a single-batch illustration. Minimum fees and ongoing facility costs can materially increase the price.
Comparison lasts until you leave or refresh this page.
How this calculator works
Eligible invoices = total invoices minus exclusions. Drawn advance = eligible invoices × advance percentage minus the additional reserve. The service fee is charged once on this eligible batch and deducted from the initial advance.
Discount charge = drawn advance × annual all-in rate × days ÷ 365. We hold the advance outstanding for the full entered period and deduct the discount charge when the invoices are paid. Real providers may debit fees more frequently or use a different day-count basis.
Later release = eligible invoices less drawn advance less discount charge. The unadvanced balance and reserve are not automatically fees. Initial net cash plus later release reconciles to eligible invoice value less the service and discount charges.
A worked example
For £100,000 of eligible invoices, an 85% advance and 1% service fee give £84,000 usable initially. At a 10% annual discount rate for 60 days, the discount charge is about £1,397 and the later release about £13,603. Total fees are about £2,397; the unadvanced £15,000 is not itself a fee.
What the result cannot tell you
This models one batch, not the annual price of a revolving facility. Minimum monthly charges, audit fees, credit protection, VAT on fees, termination costs and bad debts are excluded. Fees may apply to total turnover rather than this eligible batch. The example assumes customers pay in full; reserves can change and recourse may require repayment if they do not.
Results are rounded for display; calculations use unrounded figures. A lender’s payment calendar, daily interest and rounding can produce different figures.
Put the numbers in context
TFP’s contact and introduction service is not open yet. You can use these tools without an enquiry. Get an appropriately qualified or authorised adviser’s help where the decision needs it.
Sources and responsibility
Published by The Finance Place. Methodology updated . The calculations are TFP illustrations; the sources explain the products and risks and do not validate a lending decision. No independent professional review is claimed.
Editorial and calculation standards