Invoice finance cost calculator
Get a quick, indicative view of monthly service and discount charges based on your invoice volume and payment terms. Rates are illustrative, not a lender quote.
Last updated 24 July 2026. Bank Rate reference 3.75% (held 18 June 2026).
Estimate your costs
Change the inputs to model slower-paying customers or different advance rates before you compare facilities.
Estimated costs
Based on your inputs. Not a quote and not a recommendation.
- Amount advanced
- £42,500
- Service charge
- £375/month
- Discount charge
- £354/month
- Estimated monthly cost
- £729
- Estimated annual cost
- £8,748
- Cost as % of turnover
- 1.5%
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- Monthly invoice value
- The total value of B2B invoices you typically raise each month. Use a realistic average for the period you want to model, not a one-off peak month.
- Advance rate
- The percentage of each invoice value the lender pays you upfront. FundingLinks editorial ranges are commonly around 80% to 100%, depending on facility type and debtor quality. The rest is usually released when your customer pays, less fees.
- Service charge
- The administration fee for running the facility. FundingLinks typically sees around 0.5% to 0.75%, with corporate facilities often 0.2% to 0.5%, higher-risk cases around 1% to 1.5%, and very high-risk cases around 2%. This calculator applies an illustrative monthly percentage to your monthly invoice value.
- Average days to payment
- How long your customers usually take to pay after you invoice them, often 30, 60 or 90 days. Longer payment times increase the discount charge because the advance stays outstanding for more days.
- Discount charge (annual)
- Interest-like cost on the cash advanced to you. Lenders usually quote it as a margin above Bank of England Bank Rate. FundingLinks typically sees around base plus 3%. The calculator converts that annual rate across your assumed payment days.
How the two charges work
Invoice finance usually combines a service charge and a discount charge. The service charge covers administration and facility management. FundingLinks typically sees around 0.5% to 0.75% for many facilities, with corporate facilities often closer to 0.2% to 0.5%, higher-risk cases around 1% to 1.5%, and very high-risk cases around 2%. This calculator applies an illustrative monthly percentage to your monthly invoice value so the estimate is easy to read month by month.
The discount charge is the interest-like cost on cash advanced against invoices. Lenders typically quote it as a margin above Bank of England Bank Rate. FundingLinks typically sees around base plus 3%. Longer customer payment times increase this part of the cost because the advance is outstanding for more days.
Bank Rate source: Bank of England . Default discount assumption here is base plus 3% (6.75% annualised).
Illustrative cost scenarios
These rows use the same formula as the calculator above, with an 85% advance, 45-day payment terms and a 6.75% discount charge. Service rates step down with volume inside FundingLinks' published indicative range. Not lender quotes.
| Annual turnover | Service charge | Est. monthly cost | Est. annual cost | % of turnover |
|---|---|---|---|---|
| £120,000 | 2.0% | £271 | £3,252 | 2.7% |
| £300,000 | 1.5% | £552 | £6,624 | 2.2% |
| £600,000 | 0.75% | £729 | £8,748 | 1.5% |
| £1,200,000 | 0.50% | £1,207 | £14,484 | 1.2% |
| £3,000,000 | 0.25% | £2,393 | £28,716 | 1.0% |
Illustrative and indicative only. Generated from the FundingLinks calculator model with mid assumptions. Your actual facility pricing will differ.
What this estimate excludes
The calculator models the two main ongoing charges. Facilities often include other fees that are not part of this estimate:
- Arrangement or facility setup fees
- Minimum monthly charges when invoice volume is low
- Faster payment or CHAPS fees on drawdowns
- Annual review fees
- Early termination or notice fees
- Optional bad-debt or credit protection cover
Ask for a full fee schedule before you sign. For product context, see invoice finance.
Calculator FAQs
Straight answers about what the estimate includes and how to get a real quote.
How accurate is this invoice finance calculator?
It is an indicative estimate only. Real facilities are priced on your invoice volume, customer credit quality, payment terms, industry and facility type. Use it to budget and compare scenarios, then speak to FundingLinks for lender-specific figures.
What is the service charge?
The service charge covers administration and facility management. FundingLinks typically sees around 0.5% to 0.75% for many facilities, with corporate facilities often closer to 0.2% to 0.5%, higher-risk cases around 1% to 1.5%, and very high-risk cases around 2%. The calculator applies an illustrative monthly percentage to your monthly invoice value.
What is the discount charge?
The discount charge is interest-like cost on the cash advanced to you. Lenders usually quote it as a margin above Bank of England Bank Rate. FundingLinks typically sees around base plus 3%. The calculator spreads that annual rate across your assumed payment days.
Does the estimate include every fee?
No. It models the two main ongoing charges only. Arrangement fees, minimum monthly charges, payment fees, annual reviews, early exit costs and optional credit protection are excluded. Ask for a full fee schedule before you commit.
Can FundingLinks get me a real quote?
Yes. FundingLinks is an independent commercial finance broker. Start with the funding checker on this page or contact the team, and a specialist can compare suitable invoice finance options across the lender panel.
Ready to find the right invoice finance?
Start with an indicative funding check, then a FundingLinks specialist can compare suitable lenders for your ledger.