Work out invoice discounting cost instantly with clear inputs, formula shown and shareable results.
Invoice discounting advances a share of an approved receivable and charges interest for the days until the customer pays. The retained margin covers dilution and disputes, and is released when the invoice settles in full.
Discounting charge
Charge = advance × rate × days/365; Net = advance - charge
Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
Often comparable on rate, but it scales with sales and does not require additional collateral beyond the receivables.
Under recourse facilities you must repay the advance; non-recourse factoring transfers that risk at a higher price.