Calculate factoring costs, see your advance amount, and compare the effective APR to a standard business loan. Adjust your invoice volume, advance rate, and discount fee to model different scenarios.
How long your customers typically take to pay
85% of $100,000 in monthly invoices
| Monthly invoice value | $100,000 |
| Advance rate | 85% |
| Cash advanced upfront | $85,000 |
| Holdback (15%) | $15,000 |
| Discount fee per month (2%) | $2,000.00 |
| Annual factoring cost | $24,000 |
| Effective APR | 28.6% |
You issue a $100,000 invoice to your customer with 30-day payment terms.
The funder advances $85,000 (85%) to your account within 24-48 hours.
Customer pays after ~30 days. You receive the $15,000 holdback minus the $2,000.00 fee.
Switch between 30, 60, and 90-day terms to see how slower-paying customers increase your effective APR. Longer terms mean your capital is tied up longer for the same fee.
Adjust the advance rate to see how much upfront cash you actually receive. A higher advance rate means more working capital but the same discount fee, so your effective APR drops.
Even a 0.5% reduction in the discount fee can save thousands annually. Use the calculator to quantify the saving and take it to your provider.
Slide the monthly invoice value up to see how costs scale. The effective APR stays the same, but the dollar cost grows linearly with volume.
Compare invoice finance, lines of credit, and business loans from 50+ lenders.
Subject to lender approval, terms and conditions apply.
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Results are estimates only and should not be relied upon for financial decisions. Actual invoice finance repayments will depend on the lender, your credit profile, and the specific terms offered. Interest rates used are for illustration purposes only and may not reflect current market rates.
Subject to lender approval, terms and conditions apply.
This calculator is general information only and is not financial advice.