2 min read
Definition
The advance rate is the proportion of an asset’s eligible value a lender will fund. In invoice finance it might be 80–90% of the invoice; in asset-based lending it varies by asset class.
In plain terms
An 85% advance rate on a £10,000 invoice releases £8,500 now, with the balance (less fees) following when the customer pays.
Why it matters for your company
A higher advance rate frees more cash but usually costs more. Model the cash released against fees with the invoice finance calculator. See haircut, its mirror image.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.