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Invoice Factoring Calculator

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How to use this invoice factoring calculator

  1. Input your invoice total: Enter the total amount of the invoice(s) you want to factor.
  2. Input your advance cash rate: This is the percentage of the invoice value that the factoring company will provide upfront as cash advance. It typically ranges from 70% to 95%.
  3. Input your factoring fee: This is the fee charged by the factoring company for their services. Usually ranging from 1% to 5% of the invoice value.
  4. Review the results:
    • Advance today: The amount of cash you will receive upfront from the factoring company.
    • Factoring fee: The fee you will need to pay the factoring company for their services.
    • Cash at close: The remaining balance you will receive from the factoring company once your customer pays the invoice.

How invoice factoring works

Invoice factoring is a way for businesses to get cash quickly by selling their outstanding invoices to a factoring company. The factoring company pays most of the invoice amount upfront and takes care of collecting payment from the customer.

How much does invoice factoring cost?

Invoice factoring typically involves a flat fee charged as a percentage of the invoice value, usually ranging from 1% to 5%. Unlike a loan, you don’t pay monthly interest charges. The fee covers the factoring company’s services, including upfront cash advance and handling customer collections.

Ready to Start Factoring?

Tired of waiting for your customers to pay?

We’ve partnered with OTR Solutions, the highest-rated factoring company in the industry, to offer you low fees and fast payments.

Take action now and schedule a quick, no-obligation call with OTR Solutions.