Invoice Factoring & Supply Chain Finance: Advance Rates, Fees & Effective Cost

What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

• Age Quillmont Packaging’s open invoices at 30 Sep 2026, apply the factor’s eligibility rules and calculate the eligible pool.
• Cap Quillmont’s largest customer at 25 % of the pool, apply the 85 % advance rate and find how much cash is still available to draw.
• Price a batch of six invoices with Bramblecote’s fee schedule: periods, advance, discount and service fees, the rebate at collection and the total fees in % of face value.
• Turn Bramblecote’s fee quote into a simple APR and an effective annual cost for invoices paid after 15 to 90 days, and chart how the cost jumps with each new 30-day period.
• Calculate the expected bad-debt loss Quillmont keeps under each option, add the service fees and see which option is cheaper on expected cost.
• Price six approved invoices that Quillmont sells under Castellan Foods’ supply chain finance programme and compare the cost with Quillmont’s own funding.
• Switch sides: Quillmont is the buyer. You price six sliding-scale early-payment offers, annualise the return, accept those above the hurdle and measure the net gain.
• Compare five ways to fund Quillmont’s 600,000 working-capital need on one basis: the all-in annual rate on the money actually used.