One of the queries we have had over the years as specialists in raising cashflow finance, i.e. factoring, and invoice discounting is how much does debtor finance actually cost on an annualised basis.

Before we describe the calculator, you should be aware immediately that the annual cost of debtor finance will generally be higher than traditional overdraft facilities because the lenders are monitoring their security much tighter than they would otherwise do with a straight overdraft facility. Equally, because they are monitoring their security more tightly they also have the ability to generate more cash against the invoices - so before you consider just the costs of the facility you must consider the additional gross profit you can generate by having the facility in place.

Anyway by request we have enclosed a calculator that highlights the annual rate for debtor finance below.

Any queries, please do not hesitate to get in touch with us on 1300 79 30 60 or email us