Estimate your advance amount, remaining balance, and facility fees instantly
Invoice Details
$
80%
10%52%95%
2.0%
0.5%2.75%5%
✱ The remaining balance is paid once your customer settles the invoice in full within the agreed terms. Fee rates and advance rates vary by provider and debtor quality.
Our free invoice finance calculator estimates the cash you'll receive upfront when you finance an outstanding invoice. Enter the invoice value, choose your advance rate (the percentage of the invoice your lender releases immediately), and the facility fee rate (the lender's charge for the service). The calculator instantly shows your advance amount, the balance paid when your customer settles, and the estimated cost of the facility.
Advance rates in Australia typically range from 70% to 90% of the invoice face value. Facility fees vary by provider, debtor quality, invoice volume, and terms — common ranges are 1.5% to 3.5% of invoice value per month or per invoice cycle.
Invoice Finance vs Debtor Finance vs Factoring
These terms are often used interchangeably in Australia, but there are distinctions worth knowing:
Invoice Finance / Debtor Finance: The broad category covering any facility where you use unpaid invoices as collateral to access working capital. Your business retains control of debtor management (chasing payment from customers).
Invoice Factoring: A specific type where the lender (factor) purchases the invoices outright and takes over collection from your debtors. Usually disclosed to customers. Can improve collection speed but involves a third party contacting your clients.
Invoice Discounting: The lender advances funds against invoices, but you continue managing collections confidentially. More common for larger businesses with established credit control processes.
Selective Invoice Finance: You choose which individual invoices to finance rather than your entire debtor ledger. Offers maximum flexibility — ideal if you only need occasional cash flow support.
Frequently Asked Questions
Invoice finance allows businesses to unlock cash tied up in unpaid invoices before customers pay. Instead of waiting 30, 60, or 90 days for payment, you sell or pledge the invoice to a lender and receive a percentage (the advance — typically 70–90%) almost immediately. When your customer pays, the lender releases the remaining balance minus their fee. It is one of the most common forms of working capital finance for B2B businesses in Australia.
Invoice finance is best suited to B2B businesses (those selling to other businesses or government) that: issue invoices with payment terms of 30–120 days; have consistent or growing revenue but experience cash flow gaps between issuing invoices and receiving payment; operate in industries such as recruitment, logistics, manufacturing, professional services, construction, or wholesale distribution. It is not suitable for businesses selling directly to consumers, as retail transactions typically settle immediately.
Costs vary widely. A typical invoice finance facility in Australia may charge: a discount or service fee of 1.5–4% of the invoice value per 30-day cycle; plus in some cases a small administration fee per invoice processed. Some providers charge a flat monthly facility fee instead. The actual cost depends on your industry, debtor credit quality, invoice volume, and how quickly your customers pay. Use the fee slider above to model different cost scenarios.
It depends on the structure. Invoice factoring is typically disclosed — your customer receives a notice directing them to pay the lender directly. Confidential invoice discounting is not disclosed — your customer continues paying you as normal, and you maintain the lender relationship behind the scenes. Most growing businesses prefer confidential facilities to preserve customer relationships. Ask your provider which structure they offer before proceeding.
Once a facility is established, drawdowns on new invoices can typically be processed within 24 hours. Initial setup and approval (credit assessment, documentation, ledger review) usually takes 3–7 business days for most providers. Some fintech invoice finance platforms can onboard faster. Having your debtor list, AR ageing report, and recent financials ready will speed up approval significantly.
With recourse invoice finance (most common in Australia), if your customer doesn't pay the invoice, you are responsible for repaying the advance to the lender. The credit risk remains with your business. With non-recourse invoice finance, the lender absorbs the bad debt risk if the debtor defaults. Non-recourse facilities are less common, typically more expensive, and usually require strong debtor credit ratings. Most small-to-medium business facilities in Australia are recourse.
Unlock Your Cash Flow Today
Our team can connect you with invoice finance facilities suited to your industry, debtor mix, and volume — from selective single-invoice options to full ledger facilities.
Disclaimer: The results generated by this calculator are indicative estimates only and are provided for general information purposes. They do not constitute an offer of finance, credit approval, or a formal quote. Actual advance rates, fees, and conditions vary significantly by provider, debtor quality, invoice volume, and individual business circumstances. This calculator does not account for additional fees, minimum charges, or facility structures. Dark Horse Financial Pty Ltd is a Credit Representative No. 465 325 of Buyers Choice Licencing Pty Ltd ACN 626 172 281 (Australian Credit Licence No. 509484). To approved applicants only.
