Invoice finance cost calculator
Invoice finance turns unpaid B2B invoices into immediate working capital. A lender advances a percentage of the invoice up front and charges two main fees: a discount fee against the advance (usually quoted per 30 days) and a service fee against turnover. This calculator models the cost of financing a single invoice end to end — handy when you're sense-checking a facility quote or working out whether the maths makes sense versus simply waiting for the customer to pay.
Gross value of the single invoice.
Share of the invoice released to you up front.
Lender's funding charge against the advance.
Facility management charge applied to the invoice.
How long the customer typically takes to pay.
Indicative outputs
- Advance amount
- £42,500.00
- Discount fee (over 45 days, pro-rated)
- £1,147.50
- Service fee on the invoice
- £500.00
- Total cost
- £1,647.50
- Net you receive
- £40,852.50
- Illustrative annualised cost
- 31.4%
Illustrative — final pricing depends on lender underwriting and facility structure. Real facilities differ on whether service fees are charged per invoice or against monthly turnover, on disbursement fees, on minimum charges, and on whether the facility is whole-turnover, selective or single-invoice.
How to read these numbers
- Advance amount
- Invoice value times the advance percentage — the cash released up front.
- Discount fee (pro-rated)
- The fee is quoted per 30 days but charged for the actual time the advance is outstanding. If the customer pays in 15 days, you pay half of one month's discount fee.
- Service fee
- Lenders normally charge this against monthly turnover. To make a single-invoice calculation possible, we apply the same percentage to the one invoice.
- Total cost
- Discount fee plus service fee. This is what the facility costs you on that one invoice.
- Net you receive
- Advance amount minus total cost. The reserve (the unadvanced portion of the invoice) is released when the customer eventually settles.
- Illustrative annualised cost
- Total cost as a share of the advance, scaled up to a 365-day year using your DSO. Useful for comparing against an unsecured loan or overdraft.
What this calculator doesn't include
- Set-up, audit and CHAPS / same-day transfer fees that many lenders charge on top of the headline percentages.
- Minimum monthly fees — some facilities apply these regardless of usage, which can change the effective cost on a quiet month.
- Concentration limits and bad-debt provisions that may reduce how much of any given invoice the lender will fund.
- Recourse vs non-recourse pricing. Non-recourse (where the lender wears bad-debt risk) tends to cost noticeably more.
- Single-invoice / selective vs whole-turnover facilities. Selective facilities usually carry a premium per invoice but no monthly minimum.
Decide if invoice finance fits
The calculator gives you a cost shape for a single invoice. The eligibility checker tells you whether invoice finance is a sensible product family for your business given debtor profile, sector and turnover.
Important — educational guidance only
- Not regulated by the FCA and not a credit broker.
- Not financial, legal or tax advice.
- Not a loan offer and not a guarantee of approval.
- Subject to lender underwriting — criteria can change.
Lendrly provides general eligibility guidance only. It is not financial advice, a loan offer, or a guarantee of approval. Provider criteria can change and final approval is subject to lender underwriting, affordability checks, credit assessment, and documentation. Lendrly is not a regulated credit broker; we do not submit applications on your behalf.