The headline margin
isn’t the whole cost.
Compare two simplified invoice-finance cost profiles on the same turnover and average drawings. Every starting figure is hypothetical.
These are fictional scenarios, not market rates or lender quotes. The model is a simplified annual snapshot, not an APR calculation or recommendation.
A comparison
with clear boundaries.
Annual cost equals the greater of the calculated service fee or minimum annual service fee, plus average drawn balance × the combined annual interest rate, plus other annual costs.
The combined interest rate should include the applicable base/reference rate and margin on a comparable annual basis. The model assumes constant rates and average usage for a full year.
It excludes changes in availability, daily interest conventions, compounding, taxes, non-financed turnover, tiering and many provider-specific fees unless you explicitly include them in other costs. A lower displayed annual cost does not establish a better facility.
Transition payback is one-off transition cost divided by the annual saving, expressed in months. It is only meaningful where the hypothetical alternative is cheaper and assumptions remain consistent.
Lower cost.
But what about availability?
A cheaper facility could deliver less usable funding or introduce restrictions. Model headroom and read operational terms alongside the cost comparison.
Explore available headroomBefore you prefer a proposal
- Use the same ledger, turnover and drawings assumptions
- Check security, guarantees and operating conditions
- Include minimums, fees and any intermediary costs
- Establish exit costs and implementation dependencies
- Distinguish indicative pricing from an actual offer
The relevant
next question.
Bring us the requirement.
Let’s consider the possibilities.
No documents needed to start.
No obligation to proceed.