Please upgrade your browser to use Internet Explorer 9 or above. Internet Explorer 8 is no longer supported.
Invoice Factoring

Invoice Factoring Calculator

Invoice factoring is a useful source of financing for businesses that may not qualify for a business loan or business line of credit. Many might ask, “how much does factoring receivables cost?” And “how much does a factoring company charge?”  Like any form of financing, there are invoice factoring fees. To learn what the costs of factoring might be for your company, follow the steps below on our invoice factoring calculator.

Factoring Calculator Step-by-Step

  1. Enter the monthly invoice sales volume you would like to factor.
  2. Choose the advance rate you desire.
  3. Select your customer payment terms.
  4. Calculate your factoring costs.

Understanding Invoice Factoring Fees

Invoice factoring rates are based on the monthly volume of invoicing sold to a factoring company. As your monthly sales improve, and you factor a higher volume of invoices, the factoring fees will go down.

  • Advance Rate – Advance rates are based on a number of variables. These include the industry the client is working in, the average invoice amount, and the invoice terms.
  • Payment Terms – The payment terms on the invoice have an effect on the cost of factoring in that the longer the payment terms, the higher the factoring fees will be.
  • Factoring Fees – Factoring fees are the cost of factoring. Factoring fees are based on the volume of invoicing the client commits to factor each month, the credit and payment history of the client’s customers, and the length of time it takes the customer to pay the invoice.

More About Invoice Factoring Calculations, Fees, and Comparisons

What to look for when comparing factoring companies

When choosing a factoring company most people focus on advance rates and factoring fees. To use factoring to it’s fullest potential, business leaders should research the additional service features when comparing factoring companies. The additional services are what separates one factor from another. Read about comparing factoring companies.



How much does factoring cost?

Factoring is a great way to provide your company with the capital flow that it needs to run efficiently. However, as with any kind of lending, it is important that you completely understand the cost of factoring. Continue reading about how much factoring costs.