Invoice cash calculator

Turning invoices into this week's cash

When your customers are other businesses, a good part of your money can sit in their accounts payable queue for 30, 60 or 90 days. Invoice finance pays you most of each eligible invoice soon after you raise it, then releases the rest, less fees, when the customer pays. As your sales grow, the funding available grows with them, which is why it suits wholesalers, labour hire firms, manufacturers and trade businesses working for larger clients.

This calculator separates the two payments. The first is the advance: eligible invoices multiplied by the percentage offered. The second is the balance released later, minus the fees. Dividing the fees by the advance shows what each dollar of early cash costs, which you can weigh against what the cash lets you do, such as taking a supplier discount or saying yes to a larger order.

What makes an invoice eligible?

• Issued to a business or government customer, not a consumer.
• For work completed or goods delivered, with no dispute.
• Not too far past its due date. Very old invoices are usually excluded.
• Not concentrated too heavily on a single customer, which some funders cap.

Invoice finance or a line of credit?

Both smooth uneven cash flow. Invoice finance is tied to your debtor book and grows automatically with sales, but it takes longer to set up the first time. A line of credit is sized on your overall trading and can be drawn for any business purpose. Our side-by-side comparison covers which suits which business, and the invoice finance page explains the facility in full.

Customers paying slowly? Make a 60-second enquiry and tell us about your debtor book. No credit check to enquire.