Invoice Discounting Comparison Calculator
Benchmark two or three invoice discounting or factoring quotes side by side. All fees are normalised to turnover excluding VAT.
Step 1
Global assumptions
All percentage fees are charged on turnover excluding VAT (B2B assumption).
Interest is charged on average funds drawn (limit × utilisation), so raise utilisation to reflect a higher prepayment %.
If a provider rolls credit cover into its service fee, set "BDP included in service fee = Yes" for that column so it isn't charged twice.
Step 2
Provider terms & fees
| Parameter | ||
|---|---|---|
Discount margin over base % | % | % |
Discount rate floor % | % | % |
Service / admin fee % of turnover | % | % |
Minimum monthly service fee £ | £ | £ |
Bad debt protection fee % of covered turnover | % | % |
BDP already included in service fee? | ||
Credit note fee % of credit notes raised What the lender charges each time you raise a credit note against an invoice they've already funded. Enter the percentage shown on the quote (e.g. 0.5 means 0.5% of the value of every credit note). Leave blank or 0 if the lender doesn't charge one. Applied to the 'Credit notes as % of turnover' figure entered above. | % | % |
Refactoring fee % of invoices still unpaid after the recourse period A penalty the lender charges on invoices that haven't been paid by the end of the recourse period (usually 90 days). Enter the percentage from the quote (e.g. 3 means an extra 3% of the invoice value). Leave blank or 0 if the lender doesn't refactor. Applied to the 'Debts outside recourse period' figure entered above. | % | % |
Arrangement fee % of facility limit (one-off) | % | % |
Arrangement fee (flat) £ (one-off) | £ | £ |
Take-on fee % of opening ledger (one-off) | % | % |
Annual review fee % of limit (per year) | % | % |
Annual review fee (flat) £ per year | £ | £ |
Annual audit fee £ per year | £ | £ |
Monthly sundry charges £ per month | £ | £ |
Prepayment % % (info only) | % | % |
Minimum term months | ||
Notice period months |
Step 3
Results
This tool is illustrative only. Actual pricing depends on lender, sector, debtor quality and covenants. For a live benchmark across our lender panel, speak to a specialist.
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