Specialist commercial funding for established UK businessesA service from NBS Finance
COMPARISON TOOL / ILLUSTRATIVE TERMS

The headline margin
isn’t the whole cost.

Compare two simplified invoice-finance cost profiles on the same turnover and average drawings. Every starting figure is hypothetical.

i

These are fictional scenarios, not market rates or lender quotes. The model is a simplified annual snapshot, not an APR calculation or recommendation.

SAME BUSINESS / SAME USAGE

A consistent basis.

£
£
SCENARIO A

Current / Scenario A

%
£
%
£
Illustrative annual cost—
SCENARIO B

Alternative / Scenario B

%
£
%
£
Illustrative annual cost—
THE ANNUAL DIFFERENCE

—

IF CONSIDERING A SWITCH
£

THE ASSUMPTIONS

A comparison
with clear boundaries.

The annual-cost model
ServiceTurnover × feeOr the annual minimum, if greater
InterestAverage drawn × rateUse the combined annual rate
AdditionalOther costsInclude the charges relevant to the agreement
OutputAnnual costTransition payback is separate; availability and conditions still matter.

Annual cost equals the greater of the calculated service fee or minimum annual service fee, plus average drawn balance × the combined annual interest rate, plus other annual costs.

The combined interest rate should include the applicable base/reference rate and margin on a comparable annual basis. The model assumes constant rates and average usage for a full year.

It excludes changes in availability, daily interest conventions, compounding, taxes, non-financed turnover, tiering and many provider-specific fees unless you explicitly include them in other costs. A lower displayed annual cost does not establish a better facility.

Transition payback is one-off transition cost divided by the annual saving, expressed in months. It is only meaningful where the hypothetical alternative is cheaper and assumptions remain consistent.

THE OTHER HALF OF THE DECISION

Lower cost.
But what about availability?

A cheaper facility could deliver less usable funding or introduce restrictions. Model headroom and read operational terms alongside the cost comparison.

Explore available headroom

Before you prefer a proposal

  • Use the same ledger, turnover and drawings assumptions
  • Check security, guarantees and operating conditions
  • Include minimums, fees and any intermediary costs
  • Establish exit costs and implementation dependencies
  • Distinguish indicative pricing from an actual offer
PUT THE RESULT IN CONTEXT

Capture the number.
Keep the assumptions.

Add your figure to a printable working note alongside the commercial objective, conditions and questions still to resolve.

Build a decision summaryDiscuss a facility review
The next step is a conversation

Bring us the requirement.
Let’s consider the possibilities.

Discuss your funding

No documents needed to start.
No obligation to proceed.