Invoice Finance Loan Calculator
Use our invoice finance calculator to get fast funding estimates for your needs. Simple and efficient!
Use our invoice finance calculator to gain insight into the potential amount you could release from outstanding invoices
Calculations are indicative only and intended as a guide only. The figures calculated are not a statement of the actual repayments that will be charged on any actual loan and do not constitute a loan offer.
Advance amount to you
£0
Service fee
£0
Once the invoice is paid, you’ll receive
£0
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Invoice Finance Loan Calculator
Our invoice finance loan calculator helps businesses estimate the cost and benefits of financing their invoices. By inputting key details such as the total value of invoices, the percentage of the invoice value to be advanced, and the fees associated with the finance, businesses can obtain a clearer picture of their potential cash flow and costs.
Key features
1. Invoice Value Input: This allows businesses to enter the total value of the invoices they wish to finance.
2. Advance Rate: This is the percentage of the invoice value that the finance company will advance upfront. It typically ranges from 70% to 90%.
3. Fees and Charges: These include the service fees and interest rates applied by the finance provider. The calculator helps to estimate these costs.
Here’s why you should use it
1. Informed Decision-Making: by providing a clear breakdown of costs and net funding, the calculator helps businesses make informed decisions about whether invoice finance is a suitable option.
2. Financial Planning: businesses can better plan their finances, knowing exactly how much cash flow they can expect to receive and when.
3. Cost Comparison: the calculator allows businesses to compare different financing options and providers, ensuring they select the most cost-effective solution.
4. Time Efficiency: calculating potential costs and benefits manually can be time-consuming and prone to error. A calculator streamlines this process, providing quick estimates less likely to fall into miscalculations.
How to Use an Invoice Finance Loan Calculator
Using an invoice finance loan calculator is typically straightforward. Here’s a step-by-step guide:
1. Enter Invoice Details: Start by inputting the total value of the invoices you plan to finance.
2. Select Advance Rate: Choose the advance rate offered by your finance provider. This is usually a percentage of the invoice value.
3. Input Fees: Enter any fees associated with the finance. This might include service fees, interest rates, and any other charges.
Practical Example
Consider a business with £100,000 in outstanding invoices. They are offered an advance rate of 85%, with service fees of 3% and an interest rate of 1.5% per month. Using an invoice finance loan calculator, they would input:
• Invoice Value: £100,000
• Advance Rate: 85%
• Service Fees: 3%
• Interest Rate: 1.5%
The calculator would then provide an estimate showing that the business would receive £85,000 upfront. After accounting for service fees (£3,000) and interest (£1,275 if the repayment term is one month), the net funding amount would be approximately £80,725. This allows the business to assess the affordability and benefit of the financing option.
Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.
Calculations are indicative only and intended as a guide only. The figures calculated are not a statement of the actual repayments that will be charged on any actual loan. Tide will not be responsible for any discrepancy in the loan calculations and does not accept any liability for loss, which may be attributable to the reliance on and use of this calculator.
It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every
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