What might invoice finance cost?
An illustration of how the two main charges, the service fee and the discount charge, combine at different levels of turnover and usage. Move the sliders to see the effect. It is a way of understanding the structure of the cost, not a quote.
Sales invoiced to business customers per year.
How long customers take to pay on average.
The proportion of eligible invoices a provider advances.
Covers administration and, in factoring, collections.
Interest-like charge on funds drawn, often a margin over base rate.
How much of the available funding you actually draw.
Illustrative annual cost
Illustrative only. Providers price each facility individually; this excludes minimum fees, set-up costs, bad debt protection, audit fees and other charges. It is not a quote.
Two main charges, plus the extras
Headline percentages can be misleading
A low service fee paired with a high minimum, or a keen discount margin paired with restrictive advance rates, may not be the best deal overall. Compare quotes on the total annual cost for your realistic level of usage, and check:
Check on every quote
- The advance rate and any concentration limits that reduce availability
- The notice period and what it costs to leave
- What is and is not included in the service fee
- Whether any personal guarantees or additional security are required
- Minimum fees against your realistic turnover through the facility
Why costs vary
- A spread of creditworthy customers, clean invoicing and good records are priced more keenly
- Concentrated debtors or a history of disputes push pricing up
- Sector, turnover and facility type all play a part
- Factoring costs more than discounting because the provider does more