Invoice finance · Method
How the invoice finance calculator works
Model the advance, retention and charges on one business invoice using your own figures.
What you enter
- Invoice amount
- Sterling face value of the invoice; greater than zero.
- Advance rate
- Share advanced by the provider, greater than 0% and no more than 100%.
- Service fee
- Percentage of the full invoice value, from your quote or assumption.
- Annual discount charge
- Simple annual percentage, not a monthly fee or APR.
- Days until customer payment
- Whole days, 1–3,650. Payment in full is assumed on that day.
- Other applicable fees (optional)
- Optional. Blank means zero assumed additional fees, not a promise of no charges.
- Discount-charge basis
- Check which amount your provider uses.
- When all modelled fees are paid
- Fees are charged once, not deducted from both advance and retention.
Method and assumptions
Advance = invoice × advance rate. Retention = invoice − advance. Service fee = invoice × service percentage.
Discount charge = chosen basis × annual discount percentage × actual days / 365. Other entered fees are added once.
At settlement, fees reduce retention; if fees exceed retention, the remaining amount due is shown explicitly. With upfront fees, initial cash is reduced and retention is released without charging fees again.
Net proceeds = invoice − total fees. Actual lenders may have different fee bases, minimums, concentration limits and recourse terms. No bad-debt protection or guaranteed customer payment is assumed.
Status of these figures
Illustrative only, not a binding finance offer. Costs vary by lender and applicant; additional fees may apply and eligibility is subject to assessment. Ocean Capital Exchange is an introducer, not the lender. Product-specific regulatory disclosures require review before production. Invoice collection, debtor quality, recourse and facility-wide minimum charges are not assessed.
Not every commercial finance product is regulated, and regulatory treatment varies by product, provider and borrower. Ocean Capital Exchange introduces businesses to third-party providers and is not a lender. These disclosures are awaiting owner and regulatory review before production.
Questions about this calculator
Does the invoice calculator charge fees twice?
No. Choose either upfront or settlement payment. The same fees are not deducted from both the advance and the retained balance.
What happens if fees exceed the retained balance?
The illustration shows an additional settlement payment due. It does not hide the shortfall by reporting retention as zero without explanation.
Independent background reading
These independent sources explain general concepts. They do not endorse Ocean Capital Exchange or confirm our providers, product availability or terms. Your provider’s agreement takes precedence over an illustration.