What does getting this invoice paid early actually cost?
Invoice finance cost check
Not which funder is cheapest — just what this one invoice costs to fund early. Put your own numbers in, and see how much cash actually reaches your account today, what it costs in total, and what that works out at as an annual percentage. Advertised monthly rates make this look far cheaper than it is.
The honest answer is sometimes “don't do it”. A short payment gap does not justify the setup cost, and a low advance rate means you carry the most risk for the least cash.
The cash rate target is the benchmark business lending prices off, so it is the yardstick for judging an effective annual cost — not a quote for this product. This site does not list funder rates or rankings. Rates move and they differ between funders and between invoices. In the chat, a broker-side assistant can share current reference rates, which are indicative only and subject to assessment of your own application. The Reserve Bank publishes the cash rate target that businesses can compare the effective cost against — see the reference below.
Verdict
This is a model, not a quote. It does not know whether your invoice qualifies, whether the fee is charged daily or upfront, whether the withheld amount is recourse or non-recourse, or whether the funder requires security over the debtor or a personal guarantee. Treat the figure as the shape of the deal, then check it against the written terms.
A free review by a licensed business finance broker. Your calculator numbers go with the message so you do not have to type them again. A review is not a credit approval and not a funding offer — the funder decides whether to approve the invoice and on what terms.
invoicefinance.help provides general information about invoice finance (also called invoice discounting or debtor finance) for Australian small businesses. We are not a lender, credit provider or credit broker, and we do not hold an Australian Credit Licence or an Australian Financial Services Licence. Nothing here is personal financial advice, a credit approval, a rate offer or a recommendation to use any funder or broker. Check your own contract and any written quote before deciding, and talk to a licensed business finance broker.
This site does not list funder rates or rankings. Rates move and they differ between funders and between invoices. In the chat, a broker-side assistant can share current reference rates, which are indicative only and subject to assessment of your own application. The Reserve Bank publishes the cash rate target that businesses can compare the effective cost against — see the reference below.
The cost of invoice finance turns on three things: how long the gap is, how much is advanced, and whether the withheld amount is recourse. Each guide covers one of them.
The funder quotes 1.5% a month. What am I really paying to get this invoice paid early?
A monthly rate is not an annual rate, and it is charged on the amount advanced rather than the invoice. Turning the quote into the cash you actually receive today, then into an annual figure, is the only honest way to compare it against anything else.
Read the guideOne quote says 1.5% a month, another says a 3% flat discount. Which is cheaper?
The two are not directly comparable on their face. A monthly rate scales with the days you wait; a flat discount does not. On a short gap the flat discount can look worse than it is, and on a long gap the monthly rate can look better than it is.
Read the guideIf the customer never pays, do I still owe the funder the money?
A recourse deal means the funder can come back to you for the advanced amount if the debtor defaults. That changes the product from a cash timing tool into a credit exposure, and it should be priced in before you sign.
Read the guide