Example comparison
What an invoice finance quote comparison looks like
Invoice finance offers are quoted in different ways, which makes them hard to compare. One provider charges a discount rate plus a service fee, another bundles fees into a single rate, and a third adds charges for credit control or bad debt protection. To make the offers comparable we convert the quoted rates and applicable fees into one consistent estimate, the estimated APR equivalent, and set it alongside the funding, protection and flexibility each provider offers.
The three quotes below are a worked example, not live offers. They show the format we send to a business once providers have responded.
Three quotes on the same basis
QUOTE A
Estimated APR equivalent
10.5%
Lower rateQUOTE B
Estimated APR equivalent
14.6%
More protectionQUOTE C
Estimated APR equivalent
12.3%
Balanced optionBased on full use of each facility over 12 months and the quoted mandatory fees and selected services.
Compare the important details
| Feature | Quote A | Quote B | Quote C |
|---|---|---|---|
| Funding limit | £400,000 | £100,000 | £250,000 |
| Advance rate | 85% | 90% | 88% |
| Credit control | You retain it | You retain it | Provider managed |
| Bad debt protection | Not included | Included | Optional |
| Notice period | 6 months | 1 month | 3 months |
| Personal guarantee | Up to £80,000 | Up to £30,000 | Up to £50,000 |
What stands out
- A
Quote A has the lowest estimated rate. It suits a business comfortable retaining credit control and operating without bad debt protection.
- B
Quote B releases the highest percentage of each approved invoice. It also includes bad debt protection, has the shortest notice period and carries the lowest personal-guarantee cap.
- C
Quote C offers a middle ground. The estimated rate sits between the other options and the provider manages credit control, which could save your business time.
How to choose between invoice finance quotes
Overall pricing
The estimated APR equivalent brings the funding rate and the applicable facility fees together into one figure, so offers priced in different ways can be compared side by side.
Available funding
Consider both the facility limit and the percentage of each approved invoice that is released to you.
Service and protection
Decide whether you want to retain credit control and whether protection against customer non-payment is valuable to your business.
Commitment and security
Compare the notice period, the personal guarantee and any other security required alongside the headline price.
See your own comparison
Compare indicative rates on screen in seconds, or upload one unpaid invoice for an instant eligibility decision. Free, with no impact on your credit score.
Start my comparisonAbout the estimated APR equivalent
This is our standardised estimate based on the quoted rates and fees and the assumed use of the facility. It is designed to make invoice finance offers easier to compare and is not an APR issued by the provider. Actual costs will vary with the invoices funded, the amount used and any optional services selected.
Compare Business Finance is a trading style of Global Internet Media Services Ltd Company number 06583227 1-3 Cobbs Brow Lane, Newburgh, England, WN8 7ND.