Invoice finance is an invaluable tool for freeing up cash flow and growing your business. This free tool from TrackCompare helps you to calculate how much an invoice finance facility is likely to cost you.
The costs associated with invoice financing are comparable to other credit sources, invoice financing is however much more flexible and much more secure with bad debt protection available with most facilities.
How To Use The Calculator
To find out how much invoice financing will cost your business simply enter the amount of a typical invoice you would generate in the red box and press Calculate. We have included the typical costs associated with invoice factoring in the calculator, do feel free to enter your own.
How To Save On Factoring Costs
Remember that with many invoice finance facilities you don’t have to factor all of your invoices, you may choose to only factor the invoices that you need to be paid quickly, or those that you are concerned are a greater risk.
It is also important to use your facility wisely, you will only be charged Discounting Fees on the funds that you actually draw on, so if the invoice advance was worth £20k and you only needed a £10k advanced you would only pay the Discounting Fee on the £10k advanced.
As well as showing you the total costs you can expect to pay for an invoice financing facility we also show you how much advance will be available and how much you will receive in total after the invoice is paid by the customer and the lenders costs are deducted. The results displayed are an indication only, costs may vary depending on the lender and the circumstances of your business.