Finance Calculator
Invoice Finance Calculator
Estimate how much funding you could access through invoice finance. Enter your debtor book value or total invoice amount, the expected advance rate, and typical fee levels to see an indicative breakdown.
Enter your invoice finance details
How does invoice finance work?
Invoice finance allows a business to release cash tied up in outstanding invoices. Instead of waiting for customers to pay on normal terms, a finance provider advances a percentage of the invoice value upfront — typically between 70% and 90%.
The remaining balance (the "retention") is released once the customer pays, minus fees. The two main fee components are:
- Service fee: A percentage of the invoice value, typically 0.5% to 3%, covering administration and credit management.
- Discount charge: Interest on the drawn funds, usually charged daily or monthly, similar to an overdraft rate.
The formulas used in this calculator are:
Available Funding = Debtor Book — Advance Rate
Retention = Debtor Book — (1 - Advance Rate)
Annual Service Fee = Debtor Book — Service Fee %
Annual Discount Cost = Available Funding — Discount Rate % — (Avg Debtor Days / 365)
Assumptions and caveats
- •The advance rate and fee levels used are illustrative. Actual terms depend on provider, sector, and debtor quality.
- •This calculator assumes the full debtor book is eligible. In practice, providers may exclude certain debtors (e.g. overseas, disputed, or concentrated).
- •The discount charge estimate uses average debtor days as a proxy for how long funds are drawn.
- •Additional costs such as minimum fees, audit charges, or termination fees are not included.
- •Results are indicative only. Contact a specialist for a formal quotation.
Frequently asked questions
Invoice finance is a form of business funding where a provider advances a percentage of the value of your outstanding invoices, typically 70% to 90%. The remaining balance, minus fees, is released when your customer pays.
The advance rate is the percentage of each invoice value that the provider will release upfront. Typical advance rates range from 70% to 90% depending on the sector, debtor quality, and provider.
Invoice finance typically involves a service fee (charged as a percentage of turnover or invoice value, usually 0.5% to 3%) and a discount charge (interest on the amount drawn, similar to an overdraft rate). Fee structures vary by provider.
The amount depends on your eligible debtor book, the advance rate offered, and provider eligibility criteria. This calculator provides an indicative estimate based on the values you enter.
Interested in invoice finance?
Speak to the Spark team about invoice finance options suited to your business and debtor book.
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