Invoice Finance Calculator
Total Debtors | |
Average Debtor Collection Period = (Total Debtors x 365)/Total Annual Sales | |
Average Debtor Collection Period |
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This is the average number of days it takes to collect payment from your debtors. | |
Approved Debts Available for Funding | |
Approved debts available for funding is based on your total debtors less aged debt (ie. debts greater than 90 days, in this example) and any other disapproved debts* that may be required. | |
Potential Funding Available | |
Approved debts available for funding multiplied by the agreed prepayment rate (ie. 90%, in this example). | |
Available funding as a % of gross debts | |
*Along with aged debts as outlined in this example, disapproved debts can include intercompany debts, disputed debts, contra balances where you are selling to your suppliers and cash sales. |