Invoice factoring cost calculator
Estimate how much cash you get upfront, the total factoring fee and your effective cost on any invoice.
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- Cash upfront
- $90,000
- Total factoring fee
- $3,000
- Reserve released later
- $7,000
- Effective cost
- 3.00%
Estimates only. Your actual terms are set in a written proposal — call (929) 658-8087 for a free quote.
How to read the result
Upfront cash is not the same as what you keep
The advance is the slice of the invoice paid immediately; the reserve is held back and released when your customer pays, minus the fee. Your total proceeds are advance plus reserve minus fee — which means a higher advance rate moves money forward but does not reduce what the facility costs you.
This trips people up when comparing quotes. A 95% advance at 2% and an 85% advance at 2% cost exactly the same; only the timing of your own money differs.
Days-to-pay usually matters more than the rate
Most factoring is priced per 30-day period. If your customer pays on day 31 and your funder bills whole periods, a 1.5% rate becomes 3% of face value. Shaving a week off collections can save more than negotiating the rate down.
Ask whether days are counted in 30-day blocks or 15-day increments before you compare two offers — it can change the effective cost by half.
Reference
The ranges behind these numbers
Your own quote depends on volume, customer credit and days-to-pay.
| Program | Advance | Typical cost |
|---|---|---|
| Accounts Receivable Financing | 80%–95% of invoice value | 0.75%–3% per 30 days |
| Purchase Order Financing | Up to 100% of supplier costs | 1.5%–6% per 30 days |
| Invoice Factoring | Up to 95% upfront | 1%–3.5% per 30 days |
| Freight Factoring | Up to 97% of the load | 1.5%–4% flat per load |
Frequently asked questions
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