Invoice Finance Calculator
Enter your monthly turnover, advance rate and discount rate to estimate how much cash you could release through invoice finance and what the facility might cost per year.
Your inputs
Estimated cost
Available facility
£191,250
Based on 45 debtor days and 85% advance rate
Est. annual service charge
£18,000
Est. annual discount cost
£14,344
At 7.5% (base 5% + 2.5%)
Total estimated annual cost
£32,344
Cost as % of turnover
1.80%
Assumptions used in this calculator
- Bank of England base rate assumed at 5.0%. Your actual discount rate will vary with base rate changes.
- Average outstanding ledger estimated as (monthly turnover x debtor days) / 30.
- Excludes arrangement fees, audit fees and other ancillary charges.
- Indicative only. Actual terms depend on lender, sector and debtor quality.
Other Spark Finance calculators
Calculator questions
What advance rate can I expect on an invoice finance facility?
Most UK lenders offer advance rates of 70% to 90% of eligible invoice value. Higher advance rates are available for businesses with strong debtor quality and low dilution.
What does the service charge cover?
The service charge covers the lender's administration costs, platform access, and (for factoring) credit control services. It is charged as a percentage of annual turnover.
What is the discount rate?
The discount rate is the interest charged on funds you draw against your invoices. It is charged daily on the outstanding balance and expressed as a percentage above the Bank of England base rate.
How to get invoice finance through Spark Finance
- 1
Confirm you invoice other businesses on credit terms of 30 days or more.
- 2
Apply through Spark Finance with your sales ledger and recent bank statements.
- 3
Receive competing factoring or discounting offers from specialist providers.
- 4
Draw down advances against your invoices within 24 hours of raising them.
