Calculate financing costs

Invoice financing is one of the fastest-growing forms of business financing in Finland. According to the Federation of Finnish Enterprises, up to 40% of SMEs experience late payments as a significant challenge to their business. Our invoice financing calculator helps you determine how much financing your invoices actually costs – in euros and percentages.

The cost of invoice financing typically consists of a fee of 1–5% of the invoice face value. The exact cost depends on several factors: the invoice amount, payment terms, your customer's creditworthiness, and the total volume of invoices financed. Larger invoices and shorter payment terms generally produce a more favorable percentage.

Our calculator shows you the net receivable – the amount that arrives in your account after deducting financing costs. You'll also see the effective annual interest rate, which helps you compare the price of invoice financing to other financing forms, such as bank loans or credit lines. It's important to remember that even though the annual rate appears high, invoice financing is short-term – typically 14–60 days – so the absolute euro cost remains modest.

For example, if your invoice value is EUR 10,000 and the payment term is 30 days, the financing cost may be approximately EUR 125 (1.25% on average). This means you receive approximately EUR 9,875 immediately after sending the invoice. The freed capital enables purchasing materials, paying salaries, or taking on new projects without waiting 30–60 days for the customer's payment.

For comparison: an SME bank loan interest rate in Finland is typically 4–8% annually, but applying takes weeks, requires collateral, and ties the company to a long-term debt commitment. Invoice financing is not debt – you sell the receivable without taking on debt. On your balance sheet, receivables decrease and cash increases, which can even improve the company's credit rating.

Invoice financing is particularly suited to situations where a company's cash flow cannot cover running expenses while waiting for customer payments. According to the SME Barometer by the Federation of Finnish Enterprises, about a third of SMEs cite cash flow problems as their biggest growth obstacle – and this is exactly what invoice financing provides a quick solution for.

For companies in a growth phase, invoice financing is especially useful. When orders grow, so do costs for materials, personnel, and subcontractors – but payments arrive with a delay. With invoice financing, you can fund growth without a bank loan or seeking external equity. Financing scales automatically with your sales.

Seasonal businesses benefit significantly from invoice financing. For example, the construction industry, tourism, event production, and agriculture experience strong seasonal fluctuations. During quiet periods, there's no need for invoice financing – and you don't pay anything. During peak season, you can finance all your invoices and keep cash flow steady.

In industries with long payment terms – such as manufacturing, construction, and public sector services – payment terms can be 60–90 days. According to Finnvera's research, public procurement payment terms often extend beyond 45 days. Invoice financing transforms these long payment terms into immediate cash flow.