Invoice finance calculator
Invoice finance releases cash tied up in unpaid invoices. The lender advances a percentage of an invoice, typically 80% to 90%, and charges a fee. Enter the invoice value, the advance rate, the fee and the average time to payment to see the cash you release, the fee and the effective annual cost.
The percentage of the invoice the lender advances, usually 80 to 90%.
The lender's charge as a percentage of the invoice, covering the service and discount.
How long your customers typically take to pay.
Annualised over the days to payment.
Indicative estimate for limited-company business finance, not a quote or a credit decision. Rates you enter are your own; no credit search is run. Reviewed July 2026.
Your invoice
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No obligation, no credit search. We are a broker for limited-company business finance and may receive commission from the lender.
Worked example
For £50,000 invoice finance at 85.0%, the cash released now is £42,500. Fee: £1,250. Net received: £41,250. Effective annual cost: 23.9%.
How it works
- Invoice finance advances a percentage of an unpaid invoice so you get most of the cash straight away.
- The lender releases the advance, usually 80 to 90%, and holds the rest until your customer pays.
- You pay a fee for the service; the calculator annualises it over the days to payment as an effective cost.
- Factoring: the lender manages collections and chases payment. Discounting: you keep control and it stays confidential.
- The effective annual cost looks high because the money is only borrowed for the days until payment.
Frequently asked questions
How much of an invoice can I get in advance?
Typically 80% to 90% of the invoice value up front, with the balance, less the fee, paid to you when your customer settles. The calculator shows both the cash you release now and the amount held.
What is the difference between factoring and discounting?
With factoring the lender manages your sales ledger and chases payment, which suits smaller businesses. With invoice discounting you keep credit control and the facility is usually confidential, which suits larger, established firms. The cost model is similar.
Why is the effective annual cost high?
Because the advance is only outstanding for the days until your customer pays, a small percentage fee annualises into a larger figure. The real cost is the fee itself; the effective annual cost just expresses it on an annual basis for comparison.
Is this a quote?
No, it is an indicative estimate for planning. Real terms depend on your ledger, your customers and the lender. CoreFi is a broker for limited-company invoice finance and can source indicative terms from the panel.
This calculator gives an indicative estimate of business finance for limited companies. It is not a quote, an offer, or a credit decision, and no credit search is run. CoreFi is a trading name of JG Core Ltd (company 16218779), a finance broker not a lender, and may receive commission from the lender. Figures reviewed July 2026.