Estimating how much invoice finance could release

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The amount a business can draw is usually based on eligible invoices, not the entire sales-ledger balance. A useful estimate allows for exclusions, reserves and amounts already advanced.

Start with eligible debt

Separate disputed, overdue and related-party invoices, then ask the provider how it treats each category. Customer concentration and credit limits can also reduce availability.

Use an illustrative calculation

If eligible invoices total £80,000 and an assumed advance is 80%, the gross advance is £64,000. That is an example, not an offer; charges, reserves and existing drawings can reduce the amount available.

Update the picture

Funding changes as invoices are raised, paid or become ineligible. Model the facility over several weeks rather than relying on a single month-end balance. Ask for a clear explanation of how the provider calculates daily availability.

Explore your next step

Contact Milestone Funding to discuss your business and funding needs, or explore the funding options.

Further reading: British Business Bank: finance options.

General information, not a personalised recommendation. Availability, costs and terms depend on the provider and circumstances.

Ready to explore funding? View selective invoice finance options with Milestone Funding.